Apple's iPhone suppliers in China won't move production to the U.S.

Apple's iPhone suppliers in China won't move production to the U.S.
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.


via AppleInsider

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48 Comments

1. westicktogether

Posts: 50; Member since: Mar 15, 2016

I don't blame them. Who wants to be in Trumpland?

2. Behyjoon

Posts: 39; Member since: Oct 19, 2016

Meeeeeeeeee

13. bucky

Posts: 3794; Member since: Sep 30, 2009

Me too

46. zunaidahmed

Posts: 1185; Member since: Dec 24, 2011

Clearly you are Hillary Clinton in disguise.

16. trojan_horse

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.

21. tedkord

Posts: 17456; Member since: Jun 17, 2009

He'll be successful in pretty much nothing he campaigned on.

25. lyndon420

Posts: 6868; 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.

28. nedimko_wot

Posts: 115; Member since: Oct 01, 2016

belive me he will get them back becouse republicans dont support minimum wage + he will introduce taxes for imported products

33. tedkord

Posts: 17456; Member since: Jun 17, 2009

He doesn't have unilateral power to introduce taxes, and Republicans are against taxing imports. Not gonna happen.

44. LanjaKodaka

Posts: 219; Member since: Sep 27, 2016

Hey guys we've got a candidate here directly from the president elect office. So according to him, we've gotta "believe" in what he says (moron).

17. wrm2013

Posts: 237; Member since: Mar 28, 2013

Meeeeeeee too

27. nedimko_wot

Posts: 115; Member since: Oct 01, 2016

made in usa fu china no quality

38. belovedson

Posts: 1061; Member since: Nov 30, 2010

You're definitely the minority. Leave the country if you don't like or support america

45. LanjaKodaka

Posts: 219; Member since: Sep 27, 2016

He's a useless idiot on the site bro. "nedimko_wot" is a baby bit*h. He doesnt really live in USA. He should be obliterated from PA.

3. drazwy

Posts: 359; 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.

40. vincelongman

Posts: 5746; Member since: Feb 10, 2013

Yep, if Trump wants production in the US he needs to make it cheaper for Apple to produce them there Which isn't happening since it would require paying Apple millions

4. dimas

Posts: 3404; 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.

5. dimas

Posts: 3404; 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.

7. dimas

Posts: 3404; Member since: Jul 22, 2014

Damn this double post.

9. NarutoKage14

Posts: 1345; Member since: Aug 31, 2016

Triple post.

11. NarutoKage14

Posts: 1345; Member since: Aug 31, 2016

He does understand it which is why most of his self branded products are manufactured in countries with wages and working conditions even lower than China's.

6. Behyjoon

Posts: 39; Member since: Oct 19, 2016

weather is in their will, they are bounded to move to US, their choice is not important.

8. NarutoKage14

Posts: 1345; Member since: Aug 31, 2016

Who would have thunk it? A manufacturer unwilling to move to a country with a significantly higher overhead.

10. scarface21173

Posts: 701; Member since: Aug 17, 2014

At the end of the day it comes down to making money. Apples cost would quadruple being based in the states. That is the only reason they will not do it.

12. darkkjedii

Posts: 31534; Member since: Feb 05, 2011

God, why didn't Hillary win.

14. bucky

Posts: 3794; Member since: Sep 30, 2009

Because she was a criminal, liar and a killer.

15. bucky

Posts: 3794; Member since: Sep 30, 2009

And keep in mind I'm no trump supporter but I'd choose him 10/10 over Hillary. At least you guys aren't stuck with the doormat called Trudeau.

18. VZWuser76

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.

20. xondk

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.

22. tedkord

Posts: 17456; Member since: Jun 17, 2009

Proof? We know Trump is a liar and criminal.

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