In 2011, then-President Barack Obama pressed Apple CEO Steve Jobs on what it would take to bring iPhone production to the United States, according to The New York Times.Fourteen years later, President Donald Trump is resurfacing that question to current Apple CEO Tim Cook 鈥� and the stakes are a lot higher. Trump threatened a hefty 25% tariff against Apple and other smartphone companies unless they manufacture phones sold in the U.S. stateside.鈥淚 have long ago informed Tim Cook of Apple that I expect their iPhone鈥檚 that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,鈥� Trump posted on Truth Social on Friday. 鈥淚f that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.鈥滶arlier this month, Apple CEO Tim Cook said he expected the majority of U.S.-bound iPhones to be shipped from India.Reviving U.S. manufacturing has been a tentpole goal of Trump鈥檚 presidency. Within the first three months of his second term, he went on a tariff blitz, promising to impose levies on nearly every product made abroad in an effort to boost jobs in the U.S. and rebalance what he saw as unfair practices by America鈥檚 trading partners.But experts who spoke with CNN said making iPhones in the United States would upend the way Apple builds its most lucrative product. Moving iPhone production to the U.S. would mean shifting away from countries like China and India that have the highly specialized workforce and skills needed to produce the millions of iPhones that Apple ships each year. The result could mean price hikes or design changes for the iPhone, some analysts estimate.鈥淚t just fundamentally doesn鈥檛 work,鈥� said Dipanjan Chatterjee, vice president and principal analyst at market research firm Forrester.Apple did not respond to CNN鈥檚 request for comment on whether it plans to shift iPhone production to the U.S.China already has a sprawling system of plants tailored specifically for assembling electronics. Foxconn, Apple鈥檚 longtime iPhone assembly partner, employs 900,000 people in its peak season, although it鈥檚 unclear how much of that employment occurs in China and is related to iPhone work. Workers live in dormitories, making it easier to shift production plans with little notice, as Chatterjee points out. Production processes are highly specialized depending on the product; it鈥檚 not a 鈥渙ne size fits all鈥� approach that鈥檚 easy to replicate.鈥淭he expertise to make each of the components is something that has to be worked on for a long period of time,鈥� said David Marcotte, senior vice president at international market research company Kantar.There鈥檚 also the question of whether there鈥檚 enough demand for factory jobs in America. Manufacturing has been on the decline in the United States, with only 8% of American workers holding jobs in that sector as of earlier this year compared to roughly 26% in 1970, according to the Bureau of Labor Statistics,And a lot has changed since 1970.Carolyn Lee, executive director of the Manufacturing Institute, previously told CNN that 鈥渢he job has very much changed鈥� and that modern manufacturing roles involve skills like coding and data analytics.Apple said in February that it plans to invest $500 billion in growing its U.S. footprint over the next four years, which will go towards boosting its research and development efforts, opening a new facility to manufacture servers to support its Apple Intelligence software features and launching a Detroit academy to teach companies about smart manufacturing techniques and AI. Trump has declared this investment 鈥� along with a $100 billion commitment from Taiwan-based chipmaker TSMC to expand in the U.S. 鈥� a political win and a step towards onshoring more tech production.But Apple鈥檚 academy will be for small-to medium-sized businesses, according to Apple鈥檚 press release, not training workers or building infrastructure to produce iPhones the way it is done in China or India.Cook has acknowledged the gap in labor required to produce iPhones in the U.S. Speaking at a Fortune Magazine event in 2017, he described the manufacturing environment in China as providing a combination of 鈥渃raftsman鈥� skills, 鈥渟ophisticated robotics鈥� and 鈥渢he computer science world.鈥濃淭hat intersection, which is very rare to find anywhere, that kind of skill, which is very important for our business because of the precision and quality level that we like,鈥� he said.Mohit Kumar, CEO and founder of smart ring maker Ultrahuman, has firsthand experience shifting production of a tech product to the U.S. from India. Ultrahuman began producing its finger-worn health tracker in Texas in November after partnering with electronics manufacturer SVtronics. The smart ring company automated more tasks to avoid higher labor costs in the United States and hired workers that were trained in multiple steps of the process 鈥� such as casting and polishing rings 鈥� rather than just one of those steps, he told CNN.The topic came up in April, with Commerce Secretary Howard Lutnick telling CNBC that Cook said Apple needs 鈥渞obotic arms鈥� to build iPhones in the United States at the same scale and precision as its facilities abroad.Patrick Moorhead, founder and CEO of analysis firm Moor Insights & Strategy, thinks Apple could feasibly shift some iPhone production to the U.S. in five years. But that would involve automating some processes to account for the skill gap in America compared to China and India, he says. That could also involve changing the iPhone鈥檚 design to accommodate more automation, such as changing how certain components are glued together.Many of Apple鈥檚 suppliers are based in China, so transitioning to the U.S. even just for assembly would mean shifting further away from critical components. Dan Ives, global head of technology research for Wedbush Securities, told CNN last month via email that an estimated 90% of the iPhone鈥檚 production process takes place in China, although he says that number is closer to 40% now that Apple has shifted more production to India. He has also estimated that making iPhones in the United States could triple the price of the device.Apple is faced with a tough decision either way, says Forrester鈥檚 Chatterjee, despite Cook鈥檚 meeting with Trump last week and the $1 million donation he made to Trump鈥檚 inauguration, according to Axios.鈥淏ecause neither can you realistically, from an economic standpoint, bring production to the U.S., nor is it really tenable in this climate to say, 鈥楴o, I won鈥檛 do that,鈥欌� he said. 鈥淪o you鈥檝e got to walk that fine line, that tightrope, for as long as you can.鈥�
In 2011, then-President Barack Obama pressed Apple CEO Steve Jobs on what it would take to bring iPhone production to the United States, according to .
Fourteen years later, President Donald Trump is resurfacing that question to current Apple CEO Tim Cook 鈥� and the stakes are a lot higher. Trump threatened a hefty 25% tariff against Apple and other smartphone companies unless they manufacture phones sold in the U.S. stateside.
鈥淚 have long ago informed Tim Cook of Apple that I expect their iPhone鈥檚 that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,鈥� on Truth Social on Friday. 鈥淚f that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.鈥�
Earlier this month, Apple CEO Tim Cook said he expected the majority of U.S.-bound iPhones to be shipped from India.
Reviving U.S. manufacturing has been a tentpole goal of Trump鈥檚 presidency. Within the first three months of his second term, he went on a tariff blitz, promising to impose levies on nearly every product made abroad in an effort to boost jobs in the U.S. and rebalance what he saw as unfair practices by America鈥檚 trading partners.
But experts who spoke with CNN said making iPhones in the United States would upend the way Apple builds its most lucrative product. Moving iPhone production to the U.S. would mean shifting away from countries like China and India that have the highly specialized workforce and skills needed to produce the millions of iPhones that Apple ships each year. The result could mean price hikes or design changes for the iPhone, some analysts estimate.
鈥淚t just fundamentally doesn鈥檛 work,鈥� said Dipanjan Chatterjee, vice president and principal analyst at market research firm Forrester.
Apple did not respond to CNN鈥檚 request for comment on whether it plans to shift iPhone production to the U.S.
China already has a sprawling system of plants tailored specifically for assembling electronics. Foxconn, Apple鈥檚 longtime iPhone assembly partner, employs 900,000 people in its peak season, although it鈥檚 unclear how much of that employment occurs in China and is related to iPhone work. Workers , making it easier to shift production plans with little notice, as Chatterjee points out. Production processes are highly specialized depending on the product; it鈥檚 not a 鈥渙ne size fits all鈥� approach that鈥檚 easy to replicate.
鈥淭he expertise to make each of the components is something that has to be worked on for a long period of time,鈥� said David Marcotte, senior vice president at international market research company Kantar.
There鈥檚 also the question of whether there鈥檚 enough demand for factory jobs in America. Manufacturing has been on the decline in the United States, with only 8% of American workers holding jobs in that sector as of earlier this year compared to , according to the ,
And a lot has changed since 1970.
Carolyn Lee, executive director of the Manufacturing Institute, that 鈥渢he job has very much changed鈥� and that modern manufacturing roles involve skills like coding and data analytics.
Apple in February that it plans to invest $500 billion in growing its U.S. footprint over the next four years, which will go towards boosting its research and development efforts, opening a new facility to manufacture servers to support its Apple Intelligence software features and launching a Detroit academy to teach companies about smart manufacturing techniques and AI. Trump has declared this investment 鈥� along with a $100 billion commitment from Taiwan-based chipmaker TSMC to expand in the U.S. 鈥� a political win and a step towards onshoring more tech production.
But Apple鈥檚 academy will be for small-to medium-sized businesses, according to Apple鈥檚 press release, not training workers or building infrastructure to produce iPhones the way it is done in China or India.
Cook has acknowledged the gap in labor required to produce iPhones in the U.S. Speaking at a Fortune Magazine event in 2017, he described the manufacturing environment in China as providing a combination of 鈥渃raftsman鈥� skills, 鈥渟ophisticated robotics鈥� and 鈥渢he computer science world.鈥�
鈥淭hat intersection, which is very rare to find anywhere, that kind of skill, which is very important for our business because of the precision and quality level that we like,鈥� he said.
Mohit Kumar, CEO and founder of smart ring maker Ultrahuman, has firsthand experience shifting production of a tech product to the U.S. from India. Ultrahuman began producing its finger-worn health tracker in Texas in November after partnering with electronics manufacturer SVtronics. The smart ring company automated more tasks to avoid higher labor costs in the United States and hired workers that were trained in multiple steps of the process 鈥� such as casting and polishing rings 鈥� rather than just one of those steps, he told CNN.
The topic came up in April, with Commerce Secretary Howard Lutnick telling that Cook said Apple needs 鈥渞obotic arms鈥� to build iPhones in the United States at the same scale and precision as its facilities abroad.
Patrick Moorhead, founder and CEO of analysis firm Moor Insights & Strategy, thinks Apple could feasibly shift some iPhone production to the U.S. in five years. But that would involve automating some processes to account for the skill gap in America compared to China and India, he says. That could also involve changing the iPhone鈥檚 design to accommodate more automation, such as changing how certain components are glued together.
Many of Apple鈥檚 suppliers are based in China, so transitioning to the U.S. even just for assembly would mean shifting further away from critical components. Dan Ives, global head of technology research for Wedbush Securities, told CNN last month via email that an estimated 90% of the iPhone鈥檚 production process takes place in China, although he says that number is closer to 40% now that Apple has shifted more production to India. He has also estimated that making iPhones in the United States could .
Apple is faced with a tough decision either way, says Forrester鈥檚 Chatterjee, despite Cook鈥檚 with Trump last week and the $1 million donation he made to Trump鈥檚 inauguration, according to .
鈥淏ecause neither can you realistically, from an economic standpoint, bring production to the U.S., nor is it really tenable in this climate to say, 鈥楴o, I won鈥檛 do that,鈥欌� he said. 鈥淪o you鈥檝e got to walk that fine line, that tightrope, for as long as you can.鈥�