Saturday, November 19, 2016

The relocation of the production of Apple in the US, is it impossible ? – In The Evening

Trump is that Apple produces its iPhone in the USA.

Credit AFP

Credit AFP

Donald Trump became the new president of the United States, it is a fact. And among all the projects announced during his presidential campaign, there is one that may be a concern for Apple. As a reminder, the 45th president of the USA wants the company to Tim Cook to produce its smartphones in the u.s. instead of China.

Donald Trump insists : "Make America Great Again", in other words, give the Us its glorious economic past. In short, can we really expect a relocation of Apple in the country of Uncle Sam ?

on The side of"yes", there is the argument of the reform of the taxes. Actually, Trump has promised this : he would not raise taxes, and several sectors would see their financial constraints decrease. This would be particularly the case with the tax rate rising from 35% to 10% to encourage american companies to repatriate their foreign capital in the USA.

In favor of the "no", there are a number of reasons. In the first place, the most obvious one remains the cost of such an operation. In fact, to move a production facility from one country to another is not an easy to achieve. To do this, the firm will not only have to buy a new building suitable for himself or to build a new one. Then, she should hire american workers as is the wish of Donald Trump. The latter had already said this : "We have fantastic people in this country !"

In the second place, there was the flexibility shown by workers in china. A manager of the firm was, in particular, explained a story in the New York Times to highlight this fact. A few weeks before marketing a previous iPhone, Apple had changed his mind and has totally redesigned its screen. A chief was then went to wake up the 8,000 workers who were sleeping in the dormitories. Each one was given a biscuit and a cup of tea, and half an hour later, all were at their post. 96 hours after this decision, the plant had produced the 10,000 iphones per day.

This is the result of a situation that was already highlighted by several media outlets : the working conditions in some asian factories, sub-contractors of the Apple, are revolting, and will enable Apple to achieve its objectives.

The decision, would it not be easier to take for the firm of Cupertino if the working conditions were standardised in the world, and this on the rise ? The question is obviously rhetorical and without a strong signal from politicians or a movement initiated by the workers, there is no reason for it to change. Unless Donald Trump has kept a master-stroke in reserve…

independent Journalist @Geeko, @BelgiumiPhone.
Twitter : @RmiLach

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