The iPhone 8 is a matter of great discussion amongst the people all across the globe and now. The ones discussing about this phone constitutes largely of Technical experts as well as, surprisingly economic and political experts as well. If you are so as to why political experts would be interested in an Apple device then you might have missed Donald trump’s little speech about having Apple manufacture its computers and phones within United States so the country could become self sufficient.
As lucrative as this ideology appears, it would actually work contrary to what the people of America North Inc. For starters, the price of the iPhone that would next be launched would shoot up to a shockingly high amount and people would be forced to look for alternatives since the iPhones are already not very cheap to buy.
The main reason why Trump’s decision about having Apple move it’s productions into United States of America you would work against the plan is because Apple relies heavily on China for production and assembly of its iPhones iPads and computers. China for a manufacturer poses to be the best place to carry out its operations, because the labor available is not just cheap , but is also very skilled. United States of America might be one of the best countries in the world in terms of power but when it comes to availability of skilled laborers, it has a very large room for improvement appoint a part of this can be blamed upon the lack of vocational education and training facilities in US and the major deviation in People’s choice of opting for vocational training courses.
On the contrary most of China’s labor is highly trained to do these jobs in a very efficient manner, for the lowering chances of Dad production. On the other hand the proximity of Chinese companies to one another makes it a better place to invest because that way it reduces the cost of transporting one spare parts to the other and also reduces the time. Assembly is best done in China its Self because all the spare parts are also manufactured close by hence production is done quite fast.
If all this production was to move back into the United States then it would mean that Apple would have to hire workers from China until the local workforce was ready to start working independently. Moreover Donald Trump wants to impose a 45% Hike on the taxes to be paid while importing goods from China. Hence if Apple is to continue buying from China then the iPhone would become 45% more expensive.
According to this if Apple chooses to go with China then the price of the iPhone 8 increases and if it has to ultimately open its factories in United States the price of the iPhone 8 would still go up because US labor is more expensive than Chinese labor. Right now we can only hope that Donald Trump does not actually give effect to this new rule so that Apple can continue production in China and our iPhones continue to be available cheap.