Apple is apparently thinking of making iPhones in the US now that Donald Trump has become the President-elect. Most of its iDevices are assembled in China by manufacturers like Foxconn and Pegatron.
According to the Nikkei Asian Review, Apple has asked Foxconn and Pegatron to look into building iPhones in the US. While the former has complied with the request, the latter has declined to do so because of cost concerns.
One source alleges that Foxconn has been actively working on Apple’s inquiry. However, its Chairman Terry Gou is not that enthusiastic about the idea since the move will likely result in a rise in production costs. The insider goes as far as to claim that assembling iPhones in the US will double the expenditure.
People within Apple’s supply chain think it would be impossible to shift iPhone manufacturing back to the US because of the lack of infrastructure and hike in costs. An industry executive echoed this belief, adding that there needs to be a cluster of suppliers in the same place to put together iPhones, something which the US doesn’t have right now.
According to him, even a Trump-imposed 45% tariff on manufacturing goods overseas might not deter Apple from staying put as long as the expenses are lower than the figure they would have to spend on building and running production lines in the US. Another executive claims making iPhones in the country is not easy unless the government subsidizes firms for producing domestically.
Apple CEO Tim Cook himself had previously stated that the US didn’t have enough skilled workers for the manufacture of iPhones. He may not have a choice in the future though, since Trump had repeatedly pledged to make sure Apple built its “damn computers and things” in the US.