If need be, iPhone assembler Pegatron could expand U.S. production capabilities

If need be, iPhone assembler Pegatron could expand U.S. production capabilities
Will Apple end up producing at least some iPhone units in the U.S.? Certainly that is the hope of President-elect Donald Trump, who called out Apple during the campaign for manufacturing its devices overseas. Since then, Apple has been talking with the companies that assemble the iPhone overseas like Foxconn and Pegatron. While the former agreed to look into moving some production to the states, Pegatron reportedly said that the process would be too costly.

However, the chairman of Pegatron, TH Tung, said today that the company could increase its production in the U.S. by as much as three to five times if pushed. The factories are located in California and Indiana. Even with this large increase in output, one report published on Monday says that this increase would not be nearly enough to produce enough handsets to cover Apple's demands.

Trump, who will be inaugurated just four days, has floated the idea of a 35% tax on products made overseas but shipped into the U.S. The goal is to force U.S. companies to bring production, and thus jobs, back into the states. But this will only work if the cost of setting up new facilities in the U.S. is cheaper than simply paying the 35% tax.

via AppleInsider

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16 Comments

1. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Wanna force companies to bring manufacturing back to the US, remove tax breaks for offshore cash and raise the cost of importing to more than 35%. Make them pay dollar for dollar. In other words, whatever it cost to make the product overseas, charge 100% to bring it here.

3. kiko007

Posts: 7493; Member since: Feb 17, 2016

That would breach several laws, not to mention only push Apple further into EU hands rather than bringing them back.

15. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Donald Trump, the harbinger of Chaos and War!

5. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

Good luck buying your $1500 Galaxy.

12. sissy246

Posts: 7115; Member since: Mar 04, 2015

Samsung is not a US company, Apple is, ( well kinda)

16. nedimko_wot

Posts: 115; Member since: Oct 01, 2016

but still they must produce products in usa under trump only if trump is not bluffing to scare companies and lure them into building plants in usa

7. Nine1Sickness

Posts: 896; Member since: Jan 30, 2011

Trump should bring all his Trump Towers that are overseas back to the US.

13. 8logic

Posts: 154; Member since: Mar 05, 2012

those towers over seas aint making money in america......

14. 8logic

Posts: 154; Member since: Mar 05, 2012

those towers over seas aint making money in america......

9. NarutoKage14

Posts: 1324; Member since: Aug 31, 2016

That's just going to force companies to invest more heavily in manufacturing automation which will likely result in job losses.

11. marorun

Posts: 5029; Member since: Mar 30, 2015

Thats could work if all country would do it not only USA.

2. LiveFaith

Posts: 474; Member since: Jul 04, 2015

The massive regulation, taxation, and overhead on companies from the US, State, and local governments makes production of anything noncompetitive with States that have little or none of the above. If were going to force all the burdensome rules and regs, then it's a good idea to punish those who skirt them and want to sell here. Otherwise, almost all manufacturing will eventually be gone.

4. xondk

Posts: 1904; Member since: Mar 25, 2014

Yeah, and his 'tax' he wants to introduce is likely just going to be passed on to the consumers, and if they move to america, same thing. Will consumers pay for such a large hike? I doubt it, prices are already looking to straining a bit. A sudden large hike won't go over well in my book. Companies could split the cost, lower profits, slightly lessening hike to consumer. But yeah. All in all does not seem like a smart move.

6. newuser1

Posts: 276; Member since: Dec 10, 2010

Tax will be forced before they move to US.

10. NarutoKage14

Posts: 1324; Member since: Aug 31, 2016

Cars are about to get really expensive if his tax comes to fruition. Roughly half the parts that go into American cars are imported, like the engines and transmissions in many cars. Say hello to a $40k Ford that used to cost $20k

8. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

I'm sure the production is going to eventually move back to US... when robots are going to do all the work. Take that mofo!

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