In a speech of his campaign, Presidential candidate Donald Trump has said he would force Apple to manufacture its hardware in the United States, instead of China. However, he did not specify details about the plan in the near future.
Mr. Trump also stressed that the US had lost 10 million jobs and 50,000 factories because large companies were ordering production in countries with low labor costs like China. “We are being killed,” he asserted.
Many people will think that getting Apple to transfer the production of its factories from China to the US is really a crazy idea as everyone knows that China is the factory of the world, not just Apple, with the production lines on large scale.
However, earlier in 2012, President Obama also had a similar request to Apple CEO Steve Jobs. But Mr. Obama did not require Apple to transfer the entire production chains to the US, he only asked Steve Jobs to have a satisfactory explanation for why he did not produce iPhones and other hardware in the US instead of choosing China.
At that time, Mr. Steve Jobs explained that the main reason was the US lacked technical capacity in the production and processing. He said Apple would take up to 9 months to recruit enough engineers force for a manufacturing plant while in China, it would take only 15 days.
But we all know there is another reason that China has become the factory of the world, including Apple, it is cheap labor costs. In addition, Apple can also rotate the large amount of cash outside the US and avoid huge taxes.
Of course, manufacturing in the US also brings many benefits to Apple, as the management and surveillance can be better, when the Apple engineers do not have to run back and forth between America and the factories in China. Apple also will minimize the information about new products leaked from the Chinese factories.
But it seems that these benefits are not enough for Apple to consider transferring all of its hardware production lines to the US. Certainly, if the candidate Donald Trump becomes president and issues new rules to apply to companies like Apple, may be paying a special tax if they want to produce outside the US, then Apple must do the job they do not want to.
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