Nikkei Asian Review | Apple Considering Moving iPhone Production to U.S.

via Nikkei Asian Review:


apple-iphone-made-in-usa-200x200Apple could make future iPhones in U.S.

November 18, 2016

iPhones might one day soon carry “Made in America” labels.

Key Apple assembler Hon Hai Precision Industry, also known as Foxconn Technology Group, has been studying the possibility of moving iPhone production to the U.S., sources told the Nikkei Asian Review.

“Apple asked both Foxconn and Pegatron, the two iPhone assemblers, in June to look into making iPhones in the U.S.,” a source said. “Foxconn complied, while Pegatron declined to formulate such a plan due to cost concerns.”


“Making iPhones in the U.S. means the cost will more than double,” the source said.

The person added that one view among the Apple supply chain in Taiwan is that U.S. President-elect Donald Trump may push the Cupertino, California-based tech titan to make a certain number of iPhone components at home.

According to research company IHS Markit, it costs about $225 for Apple to make an iPhone 7 with a 32GB memory, while the unsubsidized price for such a handset is $649.

Apple’s move appears to fall in line with Trump’s pledge to push American companies to make their products at home. There is a widespread perception among American voters that the U.S. is losing manufacturing jobs to other countries in this age of globalization and free trade.


Trump singled out Apple several times earlier this year to hammer home his point, and vowed to slap a 45% tariff on goods made in China.

“We’re going to get Apple to build their damn computers and things in this country instead of in other countries,” he said at Liberty University in Virginia in January. (Read More)


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