You are CEO of Apple, whose smartphones are all assembled in China (although designed in California). The

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You are CEO of Apple, whose smartphones are all assembled in China (although designed in California). The average retail price of an iPhone in the United States is about $800, and China only contributes approximately 5%–10% of that. Japan, Germany, and South Korea provide, respectively, 34%, 17%, and 13%. President Trump has publicly (via Twitter) and privately (in meetings with you) asked you to move some of the production back to the United States. However, an iPhone that is entirely (all components and labor) made in the United States would push the retail price up to $2,000.

What would you do?

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Global Strategy

ISBN: 9780357512364

5th Edition

Authors: Mike W. Peng

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