The Trump administration thinks its tariffs on China will push Apple to manufacture its iPhones in the United States, but analysts say that not something that could happen overnight.
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00:00We have now $7 trillion, think of this, $7 trillion of commitments from companies wanting to go in,
00:09from Apple to many, many companies.
00:11That takes time.
00:12Many from Taiwan.
00:13It takes time.
00:14Of course it takes time.
00:15Well, are you asking me a question or are you telling me, yeah, it takes time.
00:19You know, you got to build a thing called a factory.
00:21Donald Trump's goal of bringing manufacturing back to the United States
00:24could put pressure on the tech sector's already established supply chains.
00:29Companies like Apple manufacture many goods in China,
00:32and moving production isn't as simple as building a new factory.
00:36Their popular conception is that companies come to China because of low labor cost.
00:43I'm not sure what part of China they go to,
00:47but the truth is China stopped being the low labor cost country many years ago,
00:52and that is not the reason to come to China from a supply point of view.
00:58The reason is because of the skill and the quantity of skill in one location and the type of skill it is.
01:07Apple released a statement in February promising to invest $500 billion in the U.S. over the next four years.
01:14But the investments aren't tied to domestic iPhone production.
01:18One analyst says that the cost of an iPhone could shoot up to $3,000 if production was shifted to the U.S.
01:25And that domestic production couldn't be done until early 2028.
01:29Factors like reestablishing labor pools and the building of new sites itself could take years once you factor in permits,
01:36equipment, and actual construction.
01:37Factors like reestablishing labor pools and the power flows.
01:47But if you're interested, I will only go into a building of new sites and see what's happening.
01:50Make sure your checkout process is a little bit cheaper.
01:52If you're interested in building and building this place,
01:55you'll see that the cost of an own company can't be found.