Apple's iPhone suppliers in China won't move production to the U.S.
posted by Alan F. / Dec 28, 2016, 11:57 AM
During the presidential campaign of 2016, Donald Trump called out the U.S. tech industry for making its products using cheap overseas labor. This annoyed Trump for two reasons; not only were U.S. assembly line workers not benefiting from the explosion in mobile device sales, U.S. consumers were actually paying for the salaries of foreign workers when they purchased a new iPhone, or Galaxy S7 for instance.
Apple saw the handwriting on the wall last summer, and spoke with Foxconn and Pegatron about assembling the iPhone in the states. While Foxconn reportedly agreed to help Apple out with the logistics of such a move, Pegatron said that the costs involved in such a move would be prohibitive.
According to a new report that was published today, most of the suppliers in China that Apple relies on for parts will not be moving any operations to the U.S. One company mentioned, Lens Technologies, provides glass to Apple. The firm says that it is concerned about having to pay higher wages, and states that U.S. workers are less flexible when it comes to matching work schedules with demand for the company's products. Lens weighed those negatives against the cheaper cost of power and land.
Overall, Apple has built a system in China with suppliers physically bunched together near factories owned by assemblers Foxconn and Pegatron. Moving iPhone production to the U.S. would likely not allow Apple to replicate this supply chain system. The suppliers would have issues of their own. An order for certain metal components that would take 10-days to fulfill in Shenzhen, could take up to a month in the U.S. since U.S. companies couldn't provide everything needed to help produce the components.
Trump has promised to impose a 35% tariff on products like the iPhone that are made overseas and shipped to the states. What the incoming President might not have considered is that Apple would most likely pass some of the price hike to consumers.
Posts: 50; Member since: Mar 15, 2016
I don't blame them. Who wants to be in Trumpland?
posted on Dec 28, 2016, 12:03 PM 10
Posts: 39; Member since: Oct 19, 2016
posted on Dec 28, 2016, 12:31 PM 6
Posts: 5868; Member since: May 06, 2016
All those who voted for Trump obviously want to be in Trumpland. Though I'm not sure if Trump will succeed in getting Apple manufacture it's iPhones in the US... Apple will fight such a case to their last breath.
posted on Dec 28, 2016, 1:09 PM 1
Posts: 6443; Member since: Jul 11, 2012
The iPhone needs a price hike because they are loosing their luxury status. I seriously doubt it would hurt customer appeal. "...U.S. workers are less flexible when it comes to matching work schedules..." - and with that Americans are considered to be either lazy or unwilling to work insane hours. Maybe apple should consider building factories over here to help with the immigration problem.
posted on Dec 28, 2016, 2:31 PM 0
Posts: 1060; Member since: Nov 30, 2010
You're definitely the minority. Leave the country if you don't like or support america
posted on Dec 28, 2016, 5:21 PM 1
Posts: 347; Member since: Jan 15, 2014
Why would they want to? They have an endless supply of slave labor that will work for anything and in any condition. Of course it's cost prohibitive.
posted on Dec 28, 2016, 12:34 PM 4
Posts: 3247; Member since: Jul 22, 2014
Why would anyone listen to trump about business when he screwed his own corporations in the past? Move to canada apple if that idiot can't understand globalization and work efficiency.
posted on Dec 28, 2016, 12:35 PM 2
Posts: 30778; Member since: Feb 05, 2011
God, why didn't Hillary win.
posted on Dec 28, 2016, 12:52 PM 3
Posts: 3771; Member since: Sep 30, 2009
Because she was a criminal, liar and a killer.
posted on Dec 28, 2016, 12:55 PM 9
Posts: 4974; Member since: Mar 04, 2010
He's two out of three, and when he gets us in our first military action ( most likely due to someone insulting him) he'll be number three as well. I'm not a Hillary fan either, hell I would've taken most anyone out of the Republican nominees over her (except for Cruz) but I would take her six days and twice on Sunday before Trump. I had a few children at our home over Xmas, I'm not looking forward to four years of that, one weekend a year is enough.
posted on Dec 28, 2016, 1:38 PM 0
Posts: 1904; Member since: Mar 25, 2014
Is she though? she has not been put in jail or court over any of the things, and fact is that what she's done is not unusual when it comes to what politicians have done. Is what she's done right? of course not. Is she sole responsible? of course not. Have other politicians done worse? of course. Remember what Snowden revealed, there isn't just 'one' person to blame. The 'reason' Hillary didn't win, is the electoral college a rather unique thing in america, most other election systems do not work like that, because it does not give each vote the same power, which it should in my book. Agree or disagree with why there is an electoral college, but it is why he won.
posted on Dec 28, 2016, 1:54 PM 0
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