The White House is insisting that Donald Trump’s vision of Apple’s flagship iPhones being manufactured in the US will come to fruition, despite assertions from analysts and the company itself that it would not be possible.
The press secretary, Karoline Leavitt, told reporters during Tuesday’s briefing that the president believed Apple’s recently announced $500bn investment, as well as increasing import costs sparked by his trade tariffs, would encourage the company to ramp up manufacturing in the US.
“He believes we have the labor, we have the workforce, we have the resources to do it. If Apple didn’t think the US could do it, they probably wouldn’t have put up that big chunk of change,” she said.
They will still want the same profit. So profit when made outside US is 1k and phone cost 1.3k according to your example. Cost of living and basic necessities is extremely cheap overseas, so they accept lower wages.
If it costs a ridiculous 1k to make in the US under terrible work conditions and stupid high cos of living and eggs, add the 1k profit leads to a 2k phone to make in US.
At such prices, I would just travel to Mexico and get a version made outside US. In this way, I save rich Americans from terrible work conditions in US and get a cheap phone, support poor families overseas, and even raise them out of poverty with my spending. India and china raised millions out of poverty due to my spending.