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White House Suggests iPhone Production Could Shift to US Despite Industry Skepticism
As the deadline approaches for President Trump’s increased tariffs, White House Press Secretary Karoline Leavitt reiterated the notion that products like iPhones could viably transition to manufacturing in the United States. Leavitt asserted that Apple’s recent $50 billion US investment plan indicates their confidence in domestic production capabilities, stating, “if Apple didn’t think the United States could do it they probably wouldn’t have put up that big chunk of change.” This statement comes amidst ongoing discussions about the feasibility of relocating tech manufacturing from overseas back to America, particularly in light of new trade policies.
Analysts and Apple’s Past Statements Cast Doubt
However, this assertion contrasts with skepticism from industry analysts, with one suggesting Apple’s investment is merely “in line with what one might expect the company to be spending anyway.” Furthermore, past statements from Apple’s own leadership, including Steve Jobs and Tim Cook, have consistently highlighted the significant challenges in replicating their manufacturing processes in the US. These previous explanations directly contradict the White House’s optimistic outlook.
White House Spokesperson Affirms US Labor Capacity
When questioned about comments from US Commerce Secretary Howard Lutnick regarding the tariffs potentially leading to “the army of millions and millions of human beings screwing in little screws to make iPhones” in the US, Leavitt maintained a firm stance. Responding to New York Times reporter Maggie Haberman, Leavitt affirmed President Trump’s belief that “absolutely we have the labor we have the workforce we have the resources to do it,” suggesting the US possesses the necessary capabilities for large-scale iPhone production domestically.
Steve Jobs Highlighted Engineer Shortage
In Walter Isaacson’s biography, Steve Jobs, accounts of meetings between Jobs and then-President Barack Obama in 2010 and 2011 reveal Jobs’ explanation of a critical obstacle. Jobs detailed that the primary impediment to US-based iPhone manufacturing was the lack of a sufficiently large and skilled engineering workforce. He pointed out the necessity for 30,000 highly trained engineers to support a factory operation comparable to Apple’s 700,000-worker operation in China:
Apple had 700,000 factory workers employed in China, he said, and that was because it needed 30,000 engineers on-site to support those workers. ‘You can’t find that many in America to hire,’ he said.
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Tim Cook Emphasized China’s Skilled Workforce
Tim Cook echoed these concerns in 2017 during Fortune Magazine’s Global Forum event, further elucidating the complexities of shifting manufacturing away from China. Cook emphasized that while low labor costs were once a factor, China’s primary advantage now lies in the depth and breadth of its skilled workforce, particularly in advanced manufacturing tooling:
…the truth is China stopped being the low labor cost country many years ago and that is not the reason to come to China from a supply point of view. The reason is because of the skill and the, 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 that we do are state-of-the-art, and the tooling skill is very deep here. You know in, in the US, you could have a meeting of tooling engineers, and I’m not sure we could fill the room — in China you could fill multiple football fields.