Flying taxis and AI-powered drones: This week’s business headlines from the Middle East
Flying taxis and AI-powered drones: This week’s business headlines from the Middle East

Flying taxis and AI-powered drones: This week’s business headlines from the Middle East

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Diverging Reports Breakdown

Sigma Enterprises leads GCC Tech Transformation with Swiss Robotics

Sigma Enterprises is driving innovation in the GCC by introducing advanced Swiss robotics and AI-powered drone technologies. In 2023, SIGMA Enterprises signed an agreement to bring the latest robotics solutions from ANYbotics – one of the world’s most renowned producers of industrial and commercial robots. More than 20 billion robots will be serving 10 billion human beings by 2050, reshaping lifestyles, labour markets, and societies, Mohammad Abdullah Al Gergawi, UAE Minister of Cabinet Affairs told delegates at the World Government Summit in February this year. The emirate wants to turn robotics into a US$9.5 billion industry. As part of the Dubai Robotics and Automation (R&A) Program, 200,000 robots. will be provided over the next 10 years until 2032, to increase efficiency and productivity in various sectors including services, logistics, and the industrial sector. This is expected to boost the revenue in the robotics market to US$241.95 million in the UAE this year with service robotic dominating the market with projected market value of US$223.75 million.

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Sigma Enterprises is driving innovation in the GCC by introducing advanced Swiss robotics and AI-powered drone technologies

Sigma Enterprises, a member of the Mazrui International, has taken a leadership role in bringing the latest Swiss robotics and drone technology to the GCC countries that are famous for precision data, surveillance supported by Artificial Intelligence that will play a crucial role in protecting critical infrastructure including oil and gas, utility, nuclear power plant, manufacturing industries, airport and aviation assets, among others.

Sigma Enterprises showcased the Swiss precision robotics and drones solutions from Anybotics, Flyability and Wingtra at the 1st Swiss Future Tech event held in Abu Dhabi recently. Sigma, which represents a number of global technology and engineering products in the Gulf, has acquired exclusive distribution rights for Swiss based Anybotics, Flyability and Wingtra in the UAE. It is currently deploying them with its customers offering end-to-end solutions, training, and after-sales service.

Drone and robotics are evolving industry worldwide as well as in the Middle East where the UAE has taken a leadership role in gradually deploying them in government departments and public facilities – in addition to bringing in driverless vehicles and flying taxis – to transform its urban infrastructure into smart cities where drones, machines, robotics and AI will play a crucial role.

In 2023, the Dubai Government announced that it aims to increase the robotics sector’s contribution to Dubai’s GDP to 9 percent by 2032. The emirate wants to turn robotics into a US$9.5 billion industry. As part of the Dubai Robotics and Automation (R&A) Program, 200,000 robots will be provided over the next 10 years until 2032, to increase efficiency and productivity in various sectors including services, logistics, and the industrial sector, and enhance the competitiveness of Dubai’s economy.

Since 2016, Swiss robotics company ANYbotics developed innovative, intelligent, and integrated robotic solutions that improve workers’ lives, increase productivity, and support more sustainable industrial facilities. Partnering with global technology leaders, ANYbotics provides large asset operators with autonomous, automated, end-to-end robotic inspection solutions for complex, hazardous, and explosive industrial environments.

ANYbotics is a fast-growing company with over 100 employees focused on supporting the inspection needs of workers in oil & gas, power, energy, mining, processing, chemicals, transportation, and construction. In 2023, SIGMA Enterprises signed an agreement to bring the latest robotics solutions from ANYbotics – one of the world’s most renowned producers of industrial and commercial robots that play crucial role in protecting critical infrastructure.

The introduction of world’s best robotic technology from ANYbotics with Swiss precision by Sigma Enterprises in the region will boost the revenue in the robotics market to US$241.95 million in the UAE this year with service robotic dominating the market with projected market value of US$223.75 million. This is expected to grow at a compound annual growth rate (CAGR) of 10.45 per cent to US$3.60.12 million by 2029.

More than 20 billion robots will be serving 10 billion human beings by 2050, reshaping lifestyles, labour markets, and societies, Mohammad Abdullah Al Gergawi, UAE Minister of Cabinet Affairs told delegates at the World Government Summit in February this year. Reflecting on the drastic changes in the last 25 years since the year 2000, Al Gergawi said, ―The world’s population has grown to 8.2 billion today, and the global economy has expanded from $34 trillion to $115 trillion by 2024. International trade surged from $7 trillion to $33 trillion over the same period. He highlighted the rapid growth of digital connectivity, with internet usage soaring from less than 7 percent of the global population in 2000 to over 60 percent today. “In 2050, over 20 billion robots will assist humans, and the space economy is expected to reach US$4 trillion,” he said.

Sigma Enterprises showcased the Swiss precision robotics and drones solutions from Anybotics, Flyability and Wingtra at the 1st Swiss Future Tech event held in Abu Dhabi recently

Bilateral trade between the UAE and Switzerland has exceeded US$2.5 billion, according to H.E Dr. Arthur Mattli, Swiss Ambassador to the UAE. “In an ever-evolving world, we are witnessing a quiet revolution through the evolution of Artificial Intelligence, machine learning, robotics, data science, precision technology, innovation as well as he development of the drone technology. With our shared ethics of precision and innovation, we can assure you that machines will not replace us but protect us. The accuracy of their data will determine the effectiveness of the new smart cities that are being built across the world,” H.E Dr. Arthur Mattli said.

“Sigma Enterprises’ partnership with leading Swiss tech firms represents a significant collaboration between the two nations who share similar ideologies in innovation and technology. This partnership is a historic milestone in our relationship and marks the beginning of Emirati-Swiss collaboration that will strengthen the ties between the UAE and Switzerland.

“Today, we celebrate not just technology but also mission, collaboration, and the pioneering spirit that drives innovation forward. ANYbotics, Flyability, and Wingtra do not just build machines; rather, they are pioneers of the future. They combine innovation, artificial intelligence, and Swiss precision to develop smarter tools benefitting various industries,” H.E Dr. Arthur Mattli concluded.

High-Precision Swiss Drone Technology

Sigma Enterprises also has signed up with Flyability and Wingtra to deploy their latest drone technology that will play a great role in monitoring, surveillance, data analytics, preventive maintenance and help sustain the life-cycle of critical infrastructure and physical assets.

The UAE’s General Civil Aviation Authority (GCAA), that regulates the drone industry, has registered nearly 24,000 industrial- and commercial-grade drones as well as more than 100 business licenses dealing with the use of drones including renting and offering drone display services.

Mr. Charbel Khoury, Group CEO of Mazrui International, said, ―Mazrui Group is a diversified business conglomerate with interests in trading, construction, services, real estate and oil and gas sector, with a legacy of more than five decades. We have been bringing the latest industrial solutions to help our economy with the best services and solutions.

“We are delighted to collaborate with ANYbotics, Flyability, and Wingtra to bring the latest improved technologies in challenging landscapes of industries like oil and gas, construction, chemicals, power and utilities, and metals in the UAE and broader GCC. Our partnership with these Swiss robotics and drone technology solutions providers will help us to strengthen the life-cycle of the region’s critical infrastructure, reduce maintenance cost, and extend the life-cycle of assets and maximizing profitability of businesses.”

Globally, 8.2 million drones were active in 2024, which is expected to grow to 9.5 million by 2029. In 2025, the global revenue in the drones market worldwide will reach US$4.4 billion, according to Statista, a global market intelligence provider. The global market for connected commercial drones is forecast to grow from US$18.6 billion in 2024 at a CAGR of 15 percent to reach US$37.3 billion in 2029, according to a research report.

Flyability is a pioneer in the development of indoor drones designed to access and inspect hard-to-reach, hazardous environments eliminating the need to send humans into dangerous spaces. Founded in 2014 and headquartered in Switzerland, the company leads the market in commercial indoor drone technology, driven by continuous innovation and a strong focus on research and development. Flyability is transforming traditional inspection methods by enabling safe, efficient, and cost-effective visual data collection across industries.

On the other hand Wingtra, based in Zurich, Switzerland, is the global leader in vertical take-off and landing (VTOL) drones for professional surveying. Since its launch in 2017, Wingtra has built a strong global presence, partnering with over 80 major surveying equipment dealers across 50+ countries. With a team of 100+ employees, over 40 dedicated to research and development and many alumni of ETH Zurich, Wingtra designs, manufactures, and supports its products in-house. The WingtraOne drone, equipped with best-in-class sensors and PPK technology, delivers survey-grade aerial data with exceptional accuracy and efficiency, serving industries from construction and mining to environmental monitoring.

Source: Cbnme.com | View original article

Joby’s Flying Taxi Passes Biggest Test Yet as It Seeks FAA Approval

Joby Aviation completed a complicated in-air maneuver that puts the company’s futuristic-looking aircraft on the path toward Federal Aviation Administration flight testing. The test flight took place on April 22 at the company’s facility in Marina, California, and was piloted by James “Buddy” Denham. The company has completed 40,000 miles (64,374 km) of test flights to date and hundreds of transitions from the aircraft’s vertical takeoff to its cruise flight position. Joby is on track to complete its flight testing in the middle of 2025, ahead of its first passenger flights in the Middle East.

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The aspiring air taxi company Joby Aviation just completed a complicated in-air maneuver that puts the company’s futuristic-looking aircraft on the path toward Federal Aviation Administration (FAA) flight testing.

Joby successfully flew one of its six-rotor aircraft from vertical hover to horizontal cruise flight and back again with a pilot onboard, showcasing the aircraft’s versatility in the air—a key value proposition of Joby’s sleek, electrically powered design.

The test flight took place on April 22 at the company’s facility in Marina, California, and was piloted by James “Buddy” Denham, Joby’s chief test pilot. Denham is no stranger to envelope-pushing aircraft—he previously helped design flight control systems for the F-35B fighter jet.

But the recent aircraft, called N544JX, is designed to be an air taxi, not a fighter jet. Thus, it’s only designed to travel up to 200 miles per hour (322 kilometers per hour), carrying up to four passengers and producing less noise than a helicopter.

The electric aircraft makes vertical lift-offs and landings (eVTOL), allowing it to fly to and land in dense urban centers or places otherwise devoid of runways. According to a Joby release, the company is on track to complete its flight testing in the middle of 2025, ahead of its first passenger flights in the Middle East.

“Designing and flying an aircraft that can seamlessly transition between vertical and cruise flight has long been considered one of the most challenging technological feats in aerospace,” said Denham in the Joby release. “The aircraft flew exactly as expected, with excellent handling qualities and low pilot workload.”

Joby didn’t just, uh, wing this. The company has completed 40,000 miles (64,374 km) of test flights to date and hundreds of transitions from the aircraft’s vertical takeoff to its cruise flight position. The FAA certified Joby’s air taxi to carry passengers in 2022, a year after the company went public, but the company has yet to clear every hurdle necessary to bring the aircraft to market.

Joby’s fleet of five electric air taxis is routinely performing piloted vertical-to-cruise transitions, most recently completing the full flight cycle from horizontal cruise to vertical landing under pilot control. But there’s a long road ahead towards type inspection authorization (TIA) flight testing with FAA pilots aboard the craft. TIA testing is one of the final steps in certifying the aircraft to hold commercial passengers, and crucially checks whether the aircraft is up to snuff in terms of performance and safety metrics.

The company still has some testing hurdles to clear, including a foray into the Middle East, but Joby’s unique-looking air taxis may make their way into America’s skyways very soon.

Source: Gizmodo.com | View original article

East Anglia set to be the UK hub for aviation innovation

East Anglia is set to become the UK’s Aviation Development Zone. It will lead the way in developing futuristic flight technologies such as electric aircraft. Virgin Atlantic and Joby Aviation will offer short-range journeys across the UK via a flying taxi service. They will sell trips for up to four passengers at speeds of 200mph from hubs at Heathrow and Manchester Airport. The government has outlined its ambition for the UK to have “the most advanced aviation technology ecosystem in the world” It has announced £20m in funding to help drones for the emergency services and flying taxis take to the skies from as soon as 2028, subject to regulatory red tape. The region is also a hive of commercial drone activity, with companies like HexCam, based at Felthorpe Airfield, offering a range of services to the energy, construction and property sectors since 2011. The UK’s first certified electric aircraft, Bungay-based firm NEBOair’s Pipistrel Velis, failed to fly from Norwich to Oxford last year.

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The zone would see the region lead the way in developing futuristic flight technologies such as small electric aircraft and drones, using systems known as Advanced Air Mobility.

These small, electric-powered ‘air taxis’ use vertical take-off and landing (eVTOL) for on-demand services, flying passengers short distances to decentralised locations using remote pilots and ‘self-driving’ automated navigation.

And while flying taxis might sound like something out of The Jetsons, many believe that taking one could be as normal as flagging a cab within a decade – though perhaps a touch more expensive.

An example of an electric air taxis belonging to Virgin Atlantic and Joby Aviation (Image: Joby Aviation) Norwich-based private charter airline Saxon Air, Norwich Airport and Norfolk and Suffolk County Councils have joined forces to back the plans for the zone.

The government has outlined its ambition for the UK to have “the most advanced aviation technology ecosystem in the world,” announcing £20m in funding.

This will go to help drones for the emergency services and flying taxis take to the skies from as soon as 2028, subject to cutting through regulatory red tape.

Electric aircraft have already been trialled by Saxon Air in the East, with the firm also using sustainable aviation fuel produced through renewable feedstocks such as waste oils and agricultural residues.

The region is also a hive of commercial drone activity, with companies like HexCam, based at Felthorpe Airfield, offering a range aerial of services to the energy, construction and property sectors since 2011.

‘ONCE IN A GENERATION OPPORTUNITY’

Saxon Air’s CEO, Alex Durand, said the prospect of East Anglia becoming the UK’s Aviation Development Zone is a “once in a generation opportunity”.

Alex Durand, Saxon Air CEO (Image: SaxonAir)

“The east of England already supports aviation innovation by taking a UK lead in development of electric aircraft, early availability of sustainable aviation fuel and advanced development of commercial drone activity,” said Mr Durand, chief executive of the Norwich Airport-based firm.

“The potential for unlocking further growth through better connectivity, based on emerging clean aviation innovation, is a once in a generation opportunity.”

A Saxon Air helicopter receiving sustainable aviation fuel (Image: SaxonAir) He said the region has the “airspace, innovators and aviation expertise” to lead the way in advancing the latest clean, eco-friendly aviation technologies.

“The strategy we’re announcing can give rural communities better connectivity, unlock new skills and raise aspirations by showcasing innovation and opportunities,” he said.

NEW GOLDEN AGE OF AVIATION?

Saxon Air hoped to showcase the UK’s first certified electric aircraft, Bungay-based firm NEBOair’s Pipistrel Velis, last year.

It planned to fly the two-seater aircraft – one of only 10 in the UK – from Norwich to Oxford, but was unable to do so due to its range limitations and the lack of recharging stops on the way.

The electric Pipistrel Velis (Image: NEBOair) “We couldn’t do the trip from Norwich to Oxford because of the range gaps in the airfields,” Mr Durand said.

The failed flight highlighted a critical issue – the current infrastructure for electric aviation is far from ready.

However, Mr Durand still believes we are entering “a new golden age of aviation” centred around electric aircraft, and that this infrastructure will be improved.

Virgin Atlantic and Joby Aviation’s flying taxis can reach speeds of up to 200mph (Image: Joby Aviation) Virgin Atlantic and Joby Aviation recently announced they will offer short-range journeys across the UK via a flying taxi service.

They will sell trips for up to four passengers at speeds of 200mph from hubs at Heathrow and Manchester Airport.

In the future, customers may be able to travel from Norwich as part of the London Hub network, but the timeline for the roll-out, as well as pricing, remains unclear.

The London Hub network map features Norwich (Image: Joby Aviation)DUTCH VISIT

The Aviation Development Zone plans were unveiled during a visit to East Anglia by the Dutch ambassador to the UK, Paul Huijts.

The Netherlands is the biggest trading partner to Norfolk and Suffolk and it is hoped last month’s visit could help unlock Dutch investment across the region.

Paul Huijts, the Dutch ambassador to the UK, being shown an aircraft by Saxon Air’s director of operations, John Dewing (Image: Supplied) The ambassador’s two-day visit began at Felixstowe Port in Suffolk and featured tours of Saxon Air at Norwich Airport and Norwich Research Park, before concluding at the city’s Sainsbury Centre.

“East Anglia and the Dutch have many historical connections and those ties resonate today,” said Mr Huijts.

“From the connection of Norwich Airport with Schiphol, to shared expertise and collaboration in domains such as agriculture and health.”

The Dutch ambassador visited Saxon Air at Norwich Airport (Image: Supplied)

LEADING THE WAY

Chris Starkie, director of growth and investment at Norfolk County Council, said: “Aviation has long been a transformative force, breaking down geographical barriers and connecting people and businesses.

“Aviation East represents a bold new vision for the region, leveraging the power to create faster, greener and more accessible connectivity solutions.

“At the heart of this initiative is the creation of the Innovation Hub at Norwich Airport – a central development zone dedicated to the advancement of sustainable aviation technologies.

“This will support new platform operators and ensure that the region becomes a leading force in the next generation of air travel.”

An example of an electric flying taxi (Image: Vertical Aerospace/PA Wire) SAXON AIR

SaxonAir was founded by entrepreneurs Christopher Mace and James Palmer in a small office in the back of a hangar at Norwich Airport in 2007.

It was overseen by chairman and associated co-founder Graeme Kalbraier, and Saxon Air’s early function was to operate Mr Kalbraier’s own aircraft for ad hoc private air charter.

The company was sold to Roger Klyne in 2009 to raise funds to build a dedicated Business Aviation Centre, with co-founder Mr Mace moving into a role as managing director and Mr Palmer becoming commercial manager.

The following year Saxon Air opened the £6m Klyne Business Aviation Centre at Norwich Airport, which serves as a base for its charter fleet – complete with offices, passenger lounges and hanger space.

Later that year Saxon Air become of the first UK private charter operators to fly the Hawker 400XP.

In 2013, the firm established its first offshore handling contract with Shell UK. It saw its flight support team quadruple from four to 16, and brought in 22 flights a day, seven days a week.

Today, Saxon Air operates a fleet from London and East Anglia, with Alex Durand in the role of chief executive officer.

Source: Edp24.co.uk | View original article

An electric drone you can sit in

The Skyfly Axe can take off vertically like a helicopter or land on a runway. The two-seater light aircraft has a range of around 100 miles. It is aimed at existing pilots who want to transition away from diesel piston engines. The company claims the Axe has a top speed of 100mph. With 40 pre-orders from all over the world, the company hopes to deliver the new model to customers early next year. A CAA spokesperson said: “We are working with innovators to test and fly new forms of aviation that keeps the UK at the cutting edge of flight” The company’s Axe has successfully completed test flights in the UK but still needs to be certified by the Civil Aviation Authority (CAA) with new challenges and safety challenges to overcome. The Axe is expected to be ready to fly by the end of next year and will cost £250,000, with a price tag of £1.5 million for the kit-plane and £100,000 for the service.

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Could electric drones you can sit in take off?

31 March 2025 Share Save Katharine Da Costa • @katharinedc BBC News Reporting from Oxfordshire Share Save

BBC The Skyfly Axe can take off vertically like a helicopter or land on a runway

Imagine an electric drone mixed with a fixed wing plane – that is the concept behind a new two-seater aircraft being developed by start-up company, Skyfly. The Axe promises the flexibility of a helicopter but without the cost, noise pollution or carbon emissions. It is a vertically capable aircraft, or Electric Vertical Take-off and Landing (eVTOL) aircraft, which means it can take off like a helicopter. It also has two fixed wings that allows it to take off and land from a runway.

The company claims the Axe has a top speed of 100mph, it can carry up to 172kg – approximately the weight of two 13.5st adults – and has a range of 100 miles, about the distance from Oxford to the Isle of Wight.

Michael Thompson, CEO of Skyfly, is optimistic the new model will be delivered to customers early next year

The team, based near Banbury in Oxfordshire, has taken five years to fine tune the design. “Compared to a conventional aircraft it’s got eight motors which is very strange,” says Dr Bill Brooks, Skyfly’s chief technical engineer. “And it’s a tail-first layout called a canard so it’s got the tail at the front. The all up weight is 750kg but 240kg of that are batteries so all the structure is carbon fibre to keep it as light as possible,” Dr Brooks says. Safety is an important part of the design too.

‘Environmental benefits’

The large wings help it to glide in the event of power failure and there are two motors at the end of each wing so that if one fails the other can compensate. It is also equipped with an emergency ballistic parachute to bring the aircraft and passengers down safely. As well as being safer and cleaner than conventional aircraft, Michael Thompson, Skyfly’s chief executive, says electric models are significantly quieter too. “When you’re taking off, you’re no longer annoying everyone around you from a noise perspective, so I do think electric propulsion brings not only environmental benefits but from a noise pollution point of view, it’s a huge benefit as well,” he says.

Dr Bill Brooks is the chief engineer and test pilot at Skyfly

Who is it marketed at?

Other eVTOLs under development include those looking to provide an electric flying-taxi service like Bristol-based Vertical Aerospace (VA) . VA, as well as Archer and Joby in the US, are designing electric powered aircraft to carry up to four passengers. Skyfly’s Axe, by comparison, is more compact and aimed at the private market. The do-it-youself kit-plane comes with a price tag of £250,000. It is aimed at existing pilots who want to transition away from diesel piston engines. Jason Pritchard, executive editor of eVTOL Insights, says it is also likely to appeal to flying clubs in order to train new members: “The eVTOL aircraft industry is still in its infancy with initial operations a few years away, but it also needs to train large numbers of pilots in the coming years,” he says. “Additionally, the Axe’s design can also train pilots with the skills and controls necessary to land an aircraft without power, which is a necessary tool.”

Skyfly The two-seater light aircraft has a range of around 100 miles

What about charging infrastructure?

While the Axe can be charged up overnight with a conventional three-pin plug, just like EV cars, electric aircraft will need the charging infrastructure to be scaled up. Aerovolt, based in West Sussex, has installed rapid chargers at seven UK airports with 40 more in the pipeline. Its founder, Philip Kingsley-Dobson, says demand is growing. “A lot of piston aircraft can’t use leaded fuel in the future so they’re looking for alternatives and ways we can decarbonise the lower end of aviation,” he says.

‘Cutting edge’

There are no eVTOL aircraft currently permitted to fly in the UK. Skyfly’s Axe has successfully completed manned test flights in both hover and forward flight modes but still needs to be certified by the Civil Aviation Authority (CAA). With 40 pre-orders from buyers all over the world, the company hopes to deliver the new model to customers early next year. A CAA spokesperson said: “We are working with innovators to test and fly brand new forms of aviation that keeps the UK at the cutting edge of flight technology and supports the sector to grow. “New technology comes with new challenges and safety remains our priority in all this work.”

Source: Bbc.com | View original article

Apple iPhones might cost $3,500 if they’re made in the US

US President Donald Trump said Friday that he expects Apple’s iPhones to be made in the US. About 90% of Apple’s iPhone production takes place in China, according to Dan Ives, global head of technology research at financial services firm Wedbush Securities. US-made iPhones will likely cost more than three times their current price of around $1,000, Ives said, because of the costs associated with replicating the highly complex production ecosystem that currently exists in Asia. Apple announced it would invest $500 billion in the United States over the next four years as part of its effort expand production outside China and to avoid Trump’s tariffs on the country. But Gene Munster, managing partner at Deepwater Asset Management, estimates it would be difficult for Apple if not to raise iPhone prices below 30% to avoid tariffs of 30% or higher. The company has not responded to CNN’s request for comment on Trump’s Friday remarks.

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CNN —

US President Donald Trump boasted “jobs and factories will come roaring back” when he unleashed unprecedented tariffs around the world during his “Liberation Day” address last month.

But there’s one product the president is particularly eager to produce in the US: iPhones.

“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump posted Friday morning on Truth Social. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”

But Dan Ives, global head of technology research at financial services firm Wedbush Securities, told CNN’s Erin Burnett in April that idea is a “fictional tale.”

US-made iPhones will likely cost more than three times their current price of around $1,000, Ives said, because of the costs associated with replicating the highly complex production ecosystem that currently exists in Asia.

“You build that (supply chain) in the US with a fab in West Virginia and New Jersey. They’ll be $3,500 iPhones,” he said, referring to fabrication plants, or high-tech manufacturing facilities where computer chips that power electronic devices are normally made.

And even then, it would cost Apple about $30 billion and three years to move just 10% of their supply chain to the US to begin with, Ives told Burnett. CNN has reached out to Apple for comment regarding Trump’s Friday remarks.

Video Ad Feedback Expert predicts how much an iPhone would cost if it was made in the US 02:17 – Source: CNN Expert predicts how much an iPhone would cost if it was made in the US 02:17

The making and assembly of smartphone parts shifted to Asia decades ago, as American companies largely focused on software development and product design, which generate much higher profit margins. That move has helped make Apple one of the world’s most valuable companies and cement itself as a dominant smartphone maker.

Since Trump’s inauguration in late January, Apple’s shares have lost more than 14% of their value due to concerns about the impact of tariffs on its sprawling supply chain, which is highly dependent on China and Taiwan. About 90% of Apple’s iPhone production takes place in China, according to Ives.

“That’s why I think you see what’s happened to the stock, because no company is more caught up in this tariff front and center in this category five storm than Cupertino and Apple,” he said in April. “It’s an economic Armageddon, but especially for the tech industry.”

The chips that power iPhones are mainly manufactured in Taiwan, while its screen panels are supplied by South Korean companies. Some other components are made in China, and final assembly mostly takes place in the country.

The administration’s exemption of smartphones and other electronics containing semiconductors from the elevated “reciprocal” tariffs on China has spared iPhones from the harshest levies, but Apple still faces a 20% tariff on Chinese goods for the country’s role in the fentanyl trade. Apple CEO Tim Cook said on the company’s most recent earnings call that “the majority” of iPhones coming into the United States will now be shipped from India, adding that tariffs could add $900 million to Apple’s costs this quarter.

In February, Apple announced it would invest $500 billion in the United States over the next four years as part of its effort expand production outside China and to avoid Trump’s tariffs on the country.

Apple CEO Tim Cook delivers remarks at the start of the Apple Worldwide Developers Conference (WWDC) on June 10, 2024 in Cupertino, California. Justin Sullivan/Getty Images

Apple has been seeking to diversify its production bases from China to India and Brazil. But Gene Munster, managing partner at Deepwater Asset Management, estimates it would be difficult for Apple not to raise iPhone prices if it faces tariffs of 30% or higher.

“Anything below 30, they will probably carry the vast majority of that increase,” he said. “But I think at some point they’re going to have to start to share it.”

Source: Cnn.com | View original article

Source: https://www.cnn.com/2025/06/09/business/video/saudi-arabia-ai-hajj-drone-huda-kattan-beauty-middle-east

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