Apple's USA v. China Dilemma

Apple is trying to shift its manufacturing out of China, but decades of supply chain dependence make it a tough move.

Apple's USA v. China Dilemma

Photo by India Today.

Apple and China

Apple is a famous American company. It makes iPhones, iPads, and many other devices. The company designs these products in the U.S., but it builds most of them in China. 

In fact, more than 90 out of every 100 Apple products are made in Chinese factories. These factories are big and can work very fast to meet Apple’s needs.

Why Apple Uses China

China is good for making products because it has many skilled workers. It also has strong supply chains. That means the parts Apple needs, like chips, batteries, and screens, are all made close to the factories. 

This makes it easy and quick to build millions of iPhones. That’s why Apple depends on China so much.

The Problem With Tariffs

Recently, the U.S. added extra taxes (called tariffs) on goods from China. These tariffs were as high as 145%. Many people thought this would make Apple’s phones cost a lot more. 

Luckily, the U.S. later said it would not add these taxes to phones and computers. But still, the whole situation made it hard for Apple to plan things.

What Could Happen

Because of these problems, Apple is now thinking about making some of its products in other countries. For example, it has started making some iPhones in India. It is also looking at places like Vietnam and the U.S. 

But moving takes time and money. So for now, China will still be Apple’s main place for building iPhones.

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