When Tim Cook revealed the real reason that iPhone devices in China – not “low employment costs”: “China has stopped being a low -wage country for years – Apple (NASDAQ: AAPL)
Apple Inc. Aapl CEO Tim Cook The company’s decision has previously made it clear to continue to manufacture its products in China, and refuted the broad belief that due to the low labor costs.
What happenedA 2024 video of Tim Cook, providing an insight into Apple manufacturing options amid the continuous tariff war in the United States of China. In the video, posted on X by CNBC TV18 NiGEL d’Souza, Cook rejected the idea of manufacturing Apple in China is due to low employment costs, saying: “China has stopped being a low -cost employment company for several years.”
Instead, he emphasized the concentration of unparalleled work in China in one place and the capabilities of advanced tools as a major cause. “The products we are ordering are really advanced tools.”
In that memo, Cook emphasized the acute difference in professional skills between the United States and China. “In the United States, you can have a meeting for the tool engineers, and we cannot fill the room,” Apple CEO said. However, in China, “you can fill multiple soccer fields … Thus, the professional experience in China is very deep.”
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Why do it matterThe US -Chinese tariff war has put pressure on American companies to transform production to the homeland. Earlier this month, one of the main analysts of technology predicted a significant increase in prices for Apple iPhone devices if manufacturing turns into the United States, which may reach about $ 3500. This is due to the complexity of the re -establishment of the ecosystem for the current production in Asia.
Moreover, experts saw that the Apple supply chain may face significant disturbances due to new mutual definitions. Apple had temporarily evaded the sharp tariff on Chinese electronics after exempting Trump.
A recent report also indicated that Apple has completed an urgent logistical process, as it transports five colors of iPhone and other products from manufacturing centers in India and China to the United States within 72 hours, in an attempt to overcome the president Donald TrumpNew 10 % mutual tariffs on imports.
Given these complications, Cook’s focus on skilled workers in China and advanced tool capabilities provides a clearer understanding of Apple manufacturing decisions.
Apple has lost more than $ 500 billion in market value since the “Tahrir Day” tariff on April 2. On Friday, the stock rose by 4.06 % to close at $ 198.15, according to Benzinga Pro.
Apple has a 62.11 % momentum and 86.50 % quality classification, according to the Royal Edge Rating in Banznaga. For an in -depth report on more shares and visions of growth opportunities, subscribe to Benzinga Edge.
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