Jim Cramer Likes Apple’s New Decision

Jim Cramer told the audience of his CNBC show “Mad Money” that he liked Apple Inc.’s (NASDAQ: AAPL) decision to move more of its manufacturing to the United States. He compared the move to similar ones made by Taiwan Semiconductor and Hyundai. Move your manufacturing, Cramer reasoned, from China to the United States and dodge what could be ruinous tariffs.

Over the next four years, Apple will invest $500 billion in the United States.

The challenge to Cramer’s view is that “onshoring” will take years. Hyundai recently said it would invest $21 billion in facilities in America, including a steel plant in Louisiana. However, Hyundai says it will not invest all the money until 2028. It cannot build factories overnight, and the tariffs could bite it financially in the meantime.

Apple faces another challenge. In late 2023, it made 95% of iPhones, AirPods, Macs, and iPads. The Chinese government might object to losing all that business.

Onshoring and tariffs are only a modest part of Apple’s problems. Sales of its iPhone 16 have been lackluster, particularly in China. Its artificial intelligence (AI) features are being released late and are not impressive. Improvements in Siri have been pushed until early 2026. Google and Microsoft, among other companies, already have consumer-facing AI products in the market.

Apple has another China problem. Its financial results there are extremely weak. In its most recently reported quarter, total corporate revenue rose 4% to $124.3 billion year over year. It fell in Greater China from $20.8 billion to $18.5 billion.

Cramer may be right about the benefits Apple will get from onshoring its manufacturing, but investors may have to wait a long time.

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