Apple, like many tech companies around the world, relies on manufacturing partners located in various countries. This includes China, which in today’s US climate is a big no-no. So much so that it seems that Apple is back in the doghouse with the Trump administration, as Trump aide Peter Navarro slammed the company for its seeming dependence on China.

Trump aide slams Apple for China operations

During an interview with CNBC’s Jim Cramer, Navarro was quoted as saying, “Going back to the first Trump term, Tim Cook has continually asked for more time in order to move his factories out of China. I mean, it’s the longest running soap opera in Silicon Valley. And my problem with Tim Cook is he never takes the steps to actually do that.”

He also says, “And with all these new advanced manufacturing techniques and the way things are moving with AI and things like that, it’s inconceivable to me that Tim Cook could not produce his iPhones elsewhere around the world and in this country.”

The latter part of his comment refers to Apple making comments in the past that China is equipped with specific pieces of technology that make the manufacturing process easier. Apple’s current and past leaders have also commented that making its products in the US isn’t easy.

For example, Apple’s CEO Tim Cook said one of the reasons the company relies on China is for the skilled labor. “The reason is because of the skill, the quantity of skill in one location, and the type of skill it is. Like the products we do require really advanced tooling, and the precision that you have to have in tooling and working with the materials we do are state of the art. And the tooling skill is very deep here.”

Where does this leave Apple?

If Apple were to truly bring manufacturing to the US, it would take the company time. We’re talking about time to set up factories and get machines up and running that meet its standards. We’re also talking about training employees and getting them up to scratch. Some have commented that American culture might not work in Apple’s favor.

This is because the manufacturing process involves a lot of small and repetitive tasks. Let’s not forget the minimum wage Apple pays to maintain its profit margins. Is that something that American workers would be willing to put up with? If not, Apple would need to start charging more for its iPhones, and is that something American consumers could accept?

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Source: ndroidheadlines.com