Donald Trump says that if he becomes president, he will “get Apple to start making their computers and their iPhones on our land, not in China.” Bernie Sanders has also called for Apple to manufacture some devices in the U.S. instead of China.
Neither candidate could instantly make that happen. As Steve Jobs once told President Obama when he asked why Apple didn’t make phones in its home country, the company didn’t hire manufacturers in China only because labor is cheaper there. China also offered a skilled workforce and flexible factories and parts suppliers that can, Apple believes, retool more quickly than their American counterparts.
But set that aside for now, and imagine that Apple persuaded one of its Chinese manufacturers to open factories in the United States or did that itself. Could it work? Apple could profitably produce iPhones in America, as some high-end Mac computers are produced, without making them much more expensive. There’s a catch, though, that undermines Trump’s and Sanders’s arguments. This becomes clear if you carry our thought experiment to its most extreme conclusion.