Moving Apple iPhone Manufacturing to US a ‘Pinocchio Story,’ Says Investor Dan Ives – Here’s What He Means

Dan Ives, global head of technology research at Wedbush Securities, believes it’s unrealistic for Apple to move iPhone production onshore, despite the White House agenda to bring manufacturing home.

In a new CNBC interview, the investor points out that Apple has made a smart move by creating a manufacturing base in India to diversify its supply chain and reduce reliance on China.

But with President Trump threatening to slap 25% tariffs on iPhones manufactured outside the US, Ives says Apple investors are now in a tough spot because he doesn’t think it’s feasible for the tech giant to uproot its global supply chain.

“It’s a Pinocchio story – the reality of actually having iPhone production in the US. Because in my opinion, that will take four to five years, $20 to $30 billion, even to move 15% to 20% of the supply chain. And then if you actually produce the iPhone in the US, you’d be looking at $3,500 iPhones. 

So I view it as Apple’s situation, they tried to pivot around India and that was a smart strategy and now their backs are against the wall. It was a Twilight Zone day today for any Apple investor, given Apple has done all the right things in terms of pivoting out of China and now [they’re] saying come to the US – that’s a fairy tale.” 

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The post Moving Apple iPhone Manufacturing to US a ‘Pinocchio Story,’ Says Investor Dan Ives – Here’s What He Means appeared first on The Daily Hodl.