January 22, 2018

Apple to three manufacturing units in US, Trump says

28 July 2017, 12:16 | Anita Wise

Apple to three manufacturing units in US, Trump says

Apple to three manufacturing units in US, Trump says

In a recent interview, President Trump claims that the company has finally promised to bring some of those manufacturing jobs to Americans by building three plants. They have openly criticised him for his decisions like infringing upon LGBTQ rights, immigration, offshoring of jobs, encryption and banning immigrants from few countries to enter the US.

There are a few intriguing things with this quote.

New York Magazine reports Apple doesn't build manufacturing plants anymore. It contracts with big manufacturers like Foxconn to build its iPhones and other computers, mostly in China.

Apple also now manufactures the Mac Pro in Austin. While Apple does rely on some US based contract manufacturers to build some Mac models, products like the iPhone and iPad are made in China by manufacturers like Foxconn and Pegatron.

The move by Apple, which will help fulfill the Trump administration's goal of bringing life back to the USA manufacturing industry, is a surprising one, especially as the company and Cook have openly criticized Trump's immigration policies. On Wednesday, Foxconn Technology announced it would open a plant in Wisconsin.

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The timing would be ideal to back Trump's narrative.

As Bloomberg points out, Apple doesn't build or manage factories; instead, it operates an intricate Asian network of production.

In the first scenario, Apple would get components for the iPhone, such as the memory chip, processor, and display screen, shipped to its hypothetical plants in the US from around the world and put it together in the plants. Apple does have middlemen in US facilities in Austin, Texas, and Fremont, Calif., which do assembly of a small number of Mac computers. Depending on how extensive the USA manufacturing process becomes, an increase of as much as $80 is possible. According to Trump, Cook responded with "I understand that".

Apple hasn't yet confirmed President Trump's statement on three new plants in the US.

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