Ryan Hans / Android Authority
In the tenth event of the fifth season SimpsonMr Burns opened a casino bases and began to lose his brain as a sarcastic humor of Howard Hughes. At one point, he has a small aircraft model called “Spruce Musa”, and he wants to fly it with Smiths. Of course, Smith says that the aircraft is just a toy, so they cannot enter it, flying very little. Mr Burns, deadly serious, pulls guns over Smiths and says, “Hop. Surprisingly, Mr. Burns stares, not knowing what to do.
I can imagine the CEO of companies who still feel the world’s smartphones like Smith, President Donald Trump plays the role of Mr. Burns.
Total, according to BloombergPresident Trump announced that he would impose sweeping taxes on smartphone manufacturers to encourage the United States to make a phone call. First, in a social media post on Friday, he said these taxes would apply to a rate of 25 %, especially to Apple. However, during the White House briefing later, he said similar rates would apply to other manufacturers, especially Samsung. Of course, Samsung is not an American company, so we are not sure why you will ever need to make a phone.
Regardless of, as it has become customary, when Trump discussed the taxes, he did not outline any concrete plan or committed a particular timeline. Trump said import revenue will be “properly” and “ready” by the end of June. That’s all we have to go.
The problem here is that what President Trump wants is impossible. Apple, Samsung, Google, and all other smartphone manufacturers can’t just make a phone call in the United States. It is as impossible as it is in 17 minutes to a toy plane to ride in Belgium Congo.
It is impossible to make an Android phone in the United States
C Scott Brown / Android Authority
Any industrialist will face three unbearable problems in making a phone call in the United States. The first and most important is the infrastructure. Factories will need to create all aspects of the smartphone – display, silicon, batteries, camera sensors, etc. Even any company will need to start with the attempt to make a phone call here, it will only need to create billions (or possibly trillions) – and it will take a decade or more time.
Second, the company will need highly skilled people to run these factories. The United States has none of them, so they will need to find and train, which will cost a ton of money and will take years. Even if the company tried to draw people from other countries to end the problem that already know what to do, these workers would need to pay enough money to stay in the United States, which would be expensive. Also, those people will be immigrants, whom we already know that Trump does not like.
The United States has a lack of infrastructure, labor and content required to make a phone. They are not just here.
If, somehow, a company eliminated these issues – which would be practically impossible to remember – the lack of content will still restrict it. Some rare earth metals needed to make smartphone components are usually not found in the United States. For example, scandium (SC) is used in the compound metals when making batteries, and the last time the United States was born 50 years ago. Even if, through a miracle, you have received all the rare ground minerals needed for a phone in the United States here, then you will need to build a planting plant to act on these minerals and in fact, people will hire people to work.
Finally, a company that found a way to draw them all, will eventually be left with a phone that will require tens of thousands of dollars to make enough profit to pay for initial investment. This phone, for all intentions and purposes, will also be a “first general” device, as all the elements of the supply chain will be new. I don’t know about you, but I don’t want a $ 10,000 smartphone that is not as good as $ 300 one can buy right now.
But what about the phone made in the United States?
Ryan Hans / Android Authority
Last week, Trump spoke with Apple’s CEO Tim Cook. During this debate, Cook allegedly told Trump about Apple’s plans that instead of taking the most part of his current manufacturing in China, India should take it to India. Trump was not affected, Kick asked Kick to stop construction of plants in India and instead remove domestic production from China.
Trump said about the conversation, “Yesterday I had a little problem with Tim Cook.” “He’s building all over India. I don’t want to build (it) in India.” Trump has not been affected by his commitment to invest $ 500 billion in the next four years. This investment will include a new server manufacturing facility in Houston, in addition to other assets.
This information strictly suggests that President Trump does not want to be resolved or anything. He seems to be not only possible to move smartphone preparations to the United States but also easily – by June this year, it looks.
Even if smartphone makers move a little more production in the United States, the price of the phone will be skyrocket.
However, let me play the devil’s lawyer. Let’s assume that Trump is just playing hardball here, and secretly will be fine with a smartphone Most Made in the United States. To do this is a completely understandable thing, but this will increase the cost of phone users rapidly. China is great in making smartphone components and can make it less than any other country. Every component that is not built in China and instead is made here will increase the cost of this component to a dangerous extent. This will force the smartphone company to increase the price on you and me, consumers.
I don’t know the numbers here, because I don’t work in the smartphone manufacturing industry, but I won’t be surprised if the cost of doing so will really exceed Trump’s proposed 25 % of the revenue. In this case, it would be better for companies to increase the cost of the phone in response to revenue and change nothing.
How will a smartphone maker respond?
Robert Triggs / Android Authority
Well, so we know that Trump wants smartphones to be made in the United States. We also know that 100 % phone made in the United States will be practically impossible. Also, any significant change in the US -joining smartphone makes the phone more expensive. So, what will the companies do?
In fact, I don’t know. They are trapped like Smiths, they need to know how they can scarce the spasmos. I am sure they have tried to explain to Trump. Tim Cook is very intelligent, so I’m sure he was well prepared for his conversation with Trump, with information about why “iPhone” iPhone in the United States is an unbearable issue. Clearly, however, it had no effect on Trump’s belief in doing so.
What Trump wants is impossible, and even a medium land solution will be unbearable. The best solution can be to get taxes and make the phone 25 % more expensive.
The only way I can see is to hit tariffs for companies. Apple, Samsung, and all other manufacturers who intend to sell phones here will require a 25 % increase in prices to meet the growing production costs. Of course, that would mean that consumers will need to spend a lot on the phone than in the past. Just to assess what you mean, the iPhone 16 and Galaxy S25 start from $ 799, and by 25 % they will increase $ 999999. This is an important change.
We will see how it moves in the coming weeks and months. One thing certainly, though: The smartphone made in the United States is not coming to Trump.
