Apple Stock News
For the latest Apple Stock News, AAPL closed at $110.06 on Friday, November 18th, with a 0.10% gain, or $0.11 from its previous close of $109.95 per share.
Apple and China are trying to figure out how to compensate for the possible tariffs President Trump is trying to impose once he is sworn into office. They are studying the effect of what would happen if they move their Chinese assembling back to the United States. Apple has two Chinese Assemblers, Foxconn and Pegatron. Apple asked if they would accompany them in developing a plan to move to the United States. Foxconn, although not enthused, jumped on board with Apple while Pegatron refused to partake in the possible move. The reason being the added production costs.
MIT estimated how much added cost to the consumer would result if Apple moves all production to the United States. If Apple decides to assemble its phones in the U.S. it “would add a negligible $30-$40 to the final cost of an iPhone. (Retrieved from Investopedia)” Manufacturing the components in the U.S. would make the phone $100 more expensive at most. This doesn’t sound like much. Apple’s argument as to why moving jobs to the US would disrupt production is that there are more stringent labor laws. Also the infrastructure wouldn’t be able to keep up with production demands.
Moving Apple production to the United States may take some time. And it may need to be redesigned in order to comply with the United States labor laws. Movement to the US is possible and may not add too much in production costs.
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