Tim Cook Tells Commerce Secretary Lutnick How Apple 'Could' Bring iPhone Manufacturing To US

Apple Inc.’s AAPL CEO Tim Cook has reportedly identified a crucial factor that could see iPhone manufacturing shift to the United States.

What Happened: U.S. Commerce Secretary Howard Lutnick, in a conversation with CNBC's Brian Sullivan on "The Exchange" Tuesday, shared details of a discussion he had with Apple CEO Tim Cook about the possibility of relocating iPhone production to the U.S.

Amid escalating tariff tensions and global economic uncertainty, President Donald Trump has renewed his push to bring manufacturing back to American soil.

Don’t Miss:

• The team behind $6B+ in licensing deals is now building the next billion-dollar IP empire — invest early at $2.25/share.
• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target — Get 4,000 of its pre-IPO shares for just $0.30/share.

In his conversation with Lutnick, Cook revealed the key catalyst necessary for such a move. ” I need to have the robotic arms, right, do it at a at a scale and a precision that I could bring it here,” Cook reportedly told Lutnick.

Tim Cook expressed a desire to move production closer to home, citing reliance on foreign labor—especially in China—as a major risk, particularly in the event of disruptions like a strike, as per the Commerce Secretary.

“Americans are going to be the technicians who drive those factories. They're not going to be the ones screwing it in…” asserted Lutnick.

Why It Matters: According to Alan Friedman from PhoneArena, by employing robots to handle tedious, low-wage assembly tasks—like building an iPhone—Apple can avoid the challenge of finding American workers willing to earn the $3 to $3.70 per hour that assemblers in Shenzhen reportedly make. Without automation, Apple would have to pay at least the U.S. federal minimum wage of $7.25 per hour—more than double—likely resulting in higher iPhone prices.

However, Cook, in a recent viral video from the past, dismissed the notion that iPhones are manufactured in China due to low labor costs. He emphasized that China’s unique concentration of skilled labor in a single region, combined with its advanced tooling capabilities, stands out as the primary reason.

Furthermore, Cook’s dialogue with Lutnick previously resulted in a tariff exemption for iPhones. This exemption could have significant implications for iPhone prices and Apple’s bottom line.

That being said, the Apple CEO has warned of a $900 million tariff impact in the June quarter, expecting the majority of iPhones sold in the U.S. to be made in India. This shift in manufacturing could potentially reduce the tariff impact and increase profitability for Apple, which recently reported strong Q2 earnings.

Nevertheless, Friedman opined, if the Trump administration allows time for technology to advance, robotics could be the answer for Tim Cook.

Apple holds a momentum rating of 74.54% and a quality rating of 86.08%, according to Benzinga’s Proprietary Edge Rankings. For an in-depth report on more stocks and insights into growth opportunities, sign up for Benzinga Edge.

Apple stock has declined 12.52% during the year-to-date period.

 See Next:

• Shark Tank's Kevin O'Leary called Missing Ring his biggest mistake — Don't repeat history— invest in RYSE at just $1.90/share.
• Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation.

Image via Shutterstock