Trump wants Apple to make iPhones in the US
What's the story
Months after it became the first American company to be valued at $1 trillion, Apple's stock value has seen a considerable drop of late. While business circles have been talking about it for a while now, US President Donald Trump has finally opened up on the issue. And, to no one's surprise, Trump has reprimanded Apple for making products in China. Here's more.
Comments
An overview of what President Trump had to say
Trump's comments came at a White House press conference where he was asked to comment on Apple's plunging stock value. Interestingly, the President said that he was not concerned and that he was confident that Apple would bounce back. "Apple is a great company," Trump said, but told everyone not to forget that they make their products in China.
Details
Trump thinks his 'friend' Tim Cook will change Apple's ways
"Look, I have to worry about our country," said Trump while talking on Apple's shares. He added that Tim Cook was a "friend" of his, and that he had asked the Apple CEO many times to make Apple products in the US. Trump then asserted that Apple would soon change its ways and, starting with a $350bn investment, would turn its attention to the US.
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Trump's assertion that Apple will change its ways
"But now, [Cook is] investing $350 billion — because of what we did with taxes and the incentives that we created — in the United States. He's going to build a campus and lots of other places. I want Apple to make their iPhones...in the United States and that will take place," said Trump.
Investment?
Is Apple really considering shifting manufacturing to the US? Nope
Turns out, however, that Trump's faith in Apple is misplaced. In January last year, Apple indeed announced a $350bn contribution to the US economy over five years, but most of that investment would go to Apple's suppliers and into tax repatriation. According to Politifact, less than 10% of the $350bn will end up as investment in the US.
Other details
Trump really wants Apple to manufacture in the US
However, the President got the campus part right - Apple is indeed investing $1bn for a new campus in Austin, Texas, but iPhones will not be manufactured there. This isn't the first time Trump has tried to push Apple into manufacturing in the US. In 2017, Trump met Tim Cook and claimed that the Apple CEO had promised to build three "big, big, big" plants in the US.
Cook
'Friend' Tim Cook doesn't seem too pleased with Trump's policies
As for Trump's 'friend' Tim Cook...well, he is not too happy with Trump's trade policies. In a letter to investors this week, Apple warned that its final 2018 quarterly projection would come up $9bn short. Explaining the misfortune, Cook said that a number of issues, including slowing iPhone sales and Trump's trade war with China, was responsible.