Following US President-elect Donald Trump’s victory, Apple has reportedly approached Foxconn and Pegatron to explore moving iPhone production to the United States.
One of US President-elect Donald Trump’s many campaign promises was his intent to force Apple to manufacture products in the United States, and now it seems that the Cupertino company is making all haste to move a vital part of its production – the iPhone – back to its home country.
During his campaign, Trump proposed a 45% tariff on Chinese exports ““ a move many international economists have described as naive and would potentially paralyze trade between the United States and China.
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While the Chinese government has already placed itself on a trade war-footing with Trump’s impending government, the Nikkei reports that Apple has quietly approached both of its Chinese manufacturers – Foxconn and Pegatron – as to whether either firm could migrate iPhone manufacturing to the United States.
Trump’s comments have placed Apple in jeopardy – the President-elect made his point most concisely during a speech at Liberty University he stated that “œWe’re gonna get Apple to start building their damn computers and things in this country, instead of in other countries”.
According to the Nikkei, Apple canvassed its partners to move manufacturing to the United States in June, where Pegatron allegedly dismissed the possibility due to cost concerns. Foxconn, however, is reportedly exploring the potential of a move to the United States.
The Nikkei reports that moving iPhone production from China would increase production costs by nearly 50% as a majority of Apple’s part suppliers are already located in Asia.
Apple already produces some products in its home country – the Mac Pro being one such example – yet the move to bring iPhone production home could be fraught with peril.
Another US electronics firm, Motorola, attempted to move its smartphone manufacturing to the United States in 2013, and closed its factory just a year later due to the cost of manufacturing in the United States.
Apple has previously invested over $100 million USD in manufacturing the Mac Pro in its home country, yet given the quantity of iPhones the company produces the move would likely usher in financial costs of a different scale entirely.
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What are your thoughts? Would it make any difference to you as a consumer if Apple moved its manufacturing to the United States? Would you be prepared to buy an iPhone for a higher price if so? Be sure to let us know your thoughts in the comments below!
Follow Bryan Smith on Twitter: @bryansmithSA
