Jim Cramer praised Apple Inc.'s decision to move its manufacturing operations to the United States, suggesting it would help mitigate potential tariffs that could harm profits. He likened this move to similar strategies adopted by companies like Taiwan Semiconductor and Hyundai. Apple plans to invest $500 billion over the next four years. However, challenges persist, including a significant percentage of production still in China and disappointing iPhone sales. Additionally, competitive pressures in AI and a decline in revenue from Greater China complicate Apple's situation, indicating that onshoring alone won't solve its problems.
Cramer believes Apple's move to shift manufacturing to the U.S. is wise, seeing it as a safeguard against tariffs that could significantly impact profits.
Cramer's perspective highlights that while onshoring has potential benefits, the current challenges Apple faces, particularly in China, cannot be ignored.
Apple's manufacturing move will be gradual, with Cramer noting that while it plans to invest $500 billion, tangible results may take years to materialize.
Despite positive intentions, Apple's financial performance struggles in China signal that onshoring is only part of the broader issues facing the tech giant.
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