US President Donald Trump is once again piling the pressure on Apple for it to manufacture the iPhone stateside, calling on CEO Tim Apple Cook to make America’s most widely bought phone in the “United States, not India, or anyplace else” in a Friday post on Truth Social. Imported iPhones will face a tariff “of at least 25%,” he warned.

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But a 25% tariff on imported iPhones could double prices, pushing the price on store shelves to USD 2k and upwards, according to TechInsights’ Wyne Lam, who was cited by the New York Times. “In the short term, it’s not economically feasible,” Lam argued, with upfront costs to develop domestic production capacity and considerably higher labor costs presenting almost insurmountable obstacles while keeping Apple’s flagship product at a commercially effective price point.

There are also numerous other reasons why around 80% of iPhones are still made in China, including the country’s massive and flexible workforce with immense experience assembling miniature components, tooling engineer expertise, and an integrated supply chain close to input suppliers. Rebuilding this labor force in the US and developing an efficient and cost-effective ecosystem would take not just years, but bns of USD — which the Trump administration has so far been reluctant to put its money behind.

Apple execs also firmly have their sights set on the future — and that future may not include the iPhone. With the tech giant increasingly focused on artificial intelligence and believing that the future of consumer tech devices will be designed around it, the company’s best-selling device may be replaced by another yet-to-be-created piece of technology. “I would be surprised if there’s an iPhone 29,” Lam said, meaning that the bns of needed investment to onshore iPhone production may never be recouped.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning. Japan’s Nikkei is up 0.6%, Korea’s Kospi is looking at gains of 1.0%, and the Shanghai Composite is up 0.3%. Meanwhile, the Hang Seng is down 0.2%.

EGX30

32,024

+0.2% (YTD: +7.7%)

USD (CBE)

Buy 49.83

Sell 49.97

USD (CIB)

Buy 49.84

Sell 49.94

Interest rates (CBE)

24.00% deposit

25.00% lending

Tadawul

11,000

-1.7% (YTD: -8.6%)

ADX

9,665

0.0% (YTD: +2.6%)

DFM

5,464

+0.2% (YTD: +5.9%)

S&P 500

5,803

-0.7% (YTD: -1.3%)

FTSE 100

8,718

-0.2% (YTD: +6.7%)

Euro Stoxx 50

5,326

-1.8% (YTD: +8.8%)

Brent crude

USD 65.31

+0.8%

Natural gas (Nymex)

USD 3.35

+0.4%

Gold

USD 3,373

-0.7%

BTC

USD 108,404

+0.4% (YTD: +15.8%)

S&P Egypt Sovereign Bond Index

869.4

+0.1% (YTD: +11.8%)

S&P MENA Bond & Sukuk

142.8

+0.2% (YTD: +2.1%)

VIX (Volatility Index)

22.29

+9.9% (YTD: +28.5%)

THE CLOSING BELL-

The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 4.2 bn (10.1% below the 90-day average). Local investors were the sole net buyers. The index is up 7.7% YTD.

In the green: Beltone Holding (+5.0%), Oriental Weavers (+3.4%), and Palm Hills Development (+3.4%).

In the red: Ibnsina Pharma (-2.6%), EFG Holding (-2.0%), and GB Corp (-1.9%).

CORPORATE ACTIONS-

EFG Holding’s board approved the firm’s plan to distribute 20.5% of U Consumer Finance — which owns and operates the Valu brand — to shareholders as a dividend, according to an EGX disclosure (pdf). The stock will begin trading on the EGX that same day the shares are granted — Valu temporarily listed 2 bn shares on the EGX starting last Thursday, giving it six months to meet listing requirements and obtain regulatory approvals before the shares start trading.

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