“How would Apple react to a Trump trade policy that punished it for manufacturing most of its products outside the U.S.?” David Pinsen asks via Seeking Alpha.
“A company like Carrier, which recently announced plans to shutter an air conditioner plant in the U.S., could decide to reopen that plant to serve the domestic market,” Pinsen writes. “But, as the FT suggests, Apple would face more challenges increasing manufacturing here: ‘Only one Apple product, the high-priced Mac Pro desktop computer, has its final assembly in the US today but the company sources several components domestically… Nonetheless, increasing its US manufacturing base has not been without challenges for Apple. In one high-profile case, in 2013 it invested $578m in an Arizona supplier of sapphire, GT Advanced Technology. But GT filed for Chapter 11 bankruptcy protection in 2014 after struggling to meet Apple’s production standards.'”
Pinsen writes, “If you’re concerned that the prospect of a protectionist U.S. President could start to weigh on Apple shares as Trump gets closer to winning the Republican nomination – or if you are just wary of a market pullback – consider a few different hedges for an Apple long position.”
Read more in the full article here.
How Apple can comply with Donald Trump’s ‘Made in America’ directive – January 21, 2016
Apple CEO Tim Cook kicks off ‘Made in USA’ push with stunning, all-new Mac Pro – December 18, 2013
Apple expands ‘Made in USA’ efforts with sapphire glass factory in Arizona, creating over 2,000 jobs – November 4, 2013