Donald Trump promises incentives for Apple to manufacture its products in the United States

In a recent interview with the New York Times, United States President-elect Donald Trump said that after the results were reported, he received two phone calls from Apple CEO Tim Cook and co- founder of Microsoft, Bill Gates. .

Trump told Cook it would be a “real victory” for him to get Apple to make its products in America.instead of doing so in countries like China or Vietnam, where many of its current manufacturing partners operate, such as Pegatron or Foxconn, two of the largest.

I got a call from Tim Cook from Apple and I said, 'Tim, you know, one of the things that's going to be a real accomplishment for me is when I get Apple to build a big factory in the United States, or several large factories in the United States, where instead of going to China or going to Vietnam or going to wherever you're going, you make your products here.

Cook acknowledged the proposition, bluntly saying “I understand that,” according to Trump.

Donald Trump at the New York Times offices

Trump said that confident that Apple will shift to American manufacturing based on the incentives it plans to offer the iPhone makerincluding a “very significant tax cut” and “substantial regulatory reductions” for businesses.

I said, « I think we're going to create some incentives for you, and I think you're going to do it. » We are going to ask for a very big corporate tax cut, which you will be happy about. “But we're going to ask for big tax cuts, we have to get rid of regulation, regulation makes that impossible. Whether you're liberal or conservative, I could sit down and show you regulations that everyone would agree are ridiculous. And businesses can't, they can't even start, they can't grow, they're drowning.

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A recent report said that Apple has asked its partner Foxconn to study the possibility of relocating iPhone production to the United States. However, Terry Gou, chairman of Foxconn, appears to be less than enthusiastic about the idea due to the unavoidable production costs this change would entail compared to doing it in China.

While campaigning at Liberty University in Virginia earlier this year, Trump said that “Let's get Apple to start building their computers and stuff in this country instead of other countries”while threatening to impose a 45% tax on products imported from China, a protectionist measure unprecedented in recent history, and encouraging a boycott of Apple products in the United States.

Cook previously said that Apple makes iPhones in China because the country has placed 'a huge emphasis on manufacturing'while noting that the U.S. workforce has fewer people trained in the necessary skills.

China has placed emphasis on manufacturing. In what we would call, you and I would call professional skills. America, over time, began to lose so many professional skills. I mean, you can take all the tools to America and probably put them in a room where we're sitting. In China you should have several football fields.

Obviously, Apple, like so many other companies, has also enjoys the lowest wages in China, where many of its suppliers are located close to each other. In Asia, Taiwan's TSMC makes A-series chips for the iPhone, Japan's Sharp and Japan Display supply displays, and Japan's SK Hynix and Toshiba make memory chips for the device.

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Apple has a manufacturing plant for the Mac Pro in Austin, Texas, operated by Flextronics, but it's a very limited effort given the relatively low production volume of this equipment.

On a personal level, Cook took a stand for Hillary Clinton, hosting a fundraiser in August. In a company-wide memo released after Trump's victory, Cook urged Apple employees to « move forward together » despite « uncertainty. »

On the business front, Apple has shown support for Democratic and Republican candidates during their respective campaigns, but reportedly limited its support at the 2016 Republican National Convention due to Trump's controversial comments about minorities, women and immigrants.

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