Report: Apple considers building the iPhone in the U.S.

Report: Apple considers building the iPhone in the U.S.
During the primary season that led up to the recent election of Donald Trump as president, the billionaire real estate developer and reality television star had some rough words for Apple. Besides trying to start a boycott of the company for its failure to unlock a terrorist's iPhone, Trump was upset at the tech titan for building its products overseas. Trump had floated the idea of a 35% tax on imported products made outside of the U.S. A Trump administration, said The Donald, would force Apple "to build their damn computers in this country instead of other countries."

Today, a story in the Nikkei Asian Review cited an anonymous source for its report that Apple is investigating the possibility of manufacturing the iPhone in the states. Apple allegedly spoke with Foxconn and Pegatron, the two contract manufacturers it uses to build its smartphones and tablets. Apple allegedly brought the idea of moving production to the attention of the two companies back in June. That was five months after Trump originally made his comments about Apple's overseas device production, but five months prior to his election.

According to the source, Foxconn agreed to help Apple come up with a plan to move iPhone production to the U.S. Pegatron, on the other hand, refused to get involved because the cost would be prohibitive.

The source told the publication that moving iPhone production to the U.S. would more than double the cost of making the device. One of the problems facing Apple is that not all of the components for the iPhone can be produced in the U.S. The report added that the Taiwan based supply chain believes that Trump will force Apple to make a certain percentage of iPhone components in the states.

source: NikkeiAsianReview via CNET

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35 Comments

1. cripton805

Posts: 1485; Member since: Mar 18, 2012

Wont happen without legislation.

2. trojan_horse

Posts: 5868; Member since: May 06, 2016

Trump has some hash ambitions. Forcing Apple to build their stuffs in tge US, which will more than double the cost of production, and lower Apple's profit margin... But I think that a company should have at least 50% of their workforce in their home country.

5. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Well these companies have decided to take the route of exploiting human misery instead of actually being progressive. Robots and smart machinery could easily have done the job in the US but they decided to invest instead in harsh overseas sweat shop. This is the one thing I agree with Trump on (god help us all) because it will put a gun to the head of manufacturers to innovate and research new tech instead of just using slaves abroad. This should bring some new high level research and Quaternary industry jobs to the US and not the low level crap the mob yearns for.

23. Rocket

Posts: 669; Member since: Feb 24, 2014

Robots and smart machinery could easily have done the job in the US. you wanna see all the people working on the factories unemployed and starving? come on man you sound like trump.

6. Klinton

Posts: 1409; Member since: Oct 24, 2016

No heed to double the price of the iPhone. Just to cut down the profit. This profit so far anyhow doesn't come to US. When Apple brags with huge profit, how is that good for US?

12. trojan_horse

Posts: 5868; Member since: May 06, 2016

"No need to double the price of the iPhone". Oh, Apple is likely to do that (double the price). But I hope Trump succeeds in getting US companies to have at least half of their infrastructure in their homeland. Though that will eventualy cost the jobs of others overseas. This is a win-lose situation.

14. Klinton

Posts: 1409; Member since: Oct 24, 2016

''Oh, Apple is likely to do that (double the price).'' Let Apple decide what to do. The market is heavy . The price matters. Apple should move their a$$es at last, and invest in factories for components in US(as Samsung did BTW), so they could even cover the difference.

22. Beijendorf unregistered

I bet they'll sell one version of their products that are assembled in the US for the US market only. They'd be clinically retarded to sell them anywhere else. American hyper-nationalists may waste twice the money, but the rest of the world are not that dumb, nor are all Americans.

17. NarutoKage14

Posts: 1327; Member since: Aug 31, 2016

So assembling the iPhone would cost ~$20-25. My bones feel a $100 price bump.

25. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Apple has only one choice, ask foxconn to build factory in USA, or imposed 35% import duty on every each iPhone. Don't tell me that profit will go down, when tax rate reduced massively by just 15%. Lame excuses again we will Boycott Apple to the core. So glad some integrity has changed my country, if you don't like him move to Canada or Mexico.

35. nedimko_wot

Posts: 115; Member since: Oct 01, 2016

it is good i much rather pay 1500$ with made in usa words on it just like levis my father has levis from 80s and 70s that are made in usa and they are still better then those i buy today that have made in china or bangladesh or something but on the other hand they can move thier factory else where in asia there are planty off places

3. wando77

Posts: 1168; Member since: Aug 23, 2012

Won't lower Apples profits. They will just charge double for the phone cause they know the sheep will pay it. Especially if the rumours of them moving onto 2015 tech in 2017 come true

8. azimesmail

Posts: 264; Member since: Nov 23, 2014

Samsung, and other manufacturers, won't raise their prices after that same 35% tax increase on imported goods? Doesn't that make all consumers sheep?

36. nedimko_wot

Posts: 115; Member since: Oct 01, 2016

you guys are so lucky those taxes are low what trump said in my country taxes on importing goods are are between 40%-50% its really complicated s**t here

4. Klinton

Posts: 1409; Member since: Oct 24, 2016

Why should the iPhones cost more than double? Real BOM of making iPhone so far, is around $200. Even if if get double if made in US, it's still a lot of profit. No transport cost. All the China brands are happy if they make $30 profit per phone. Right?

7. trojan_horse

Posts: 5868; Member since: May 06, 2016

"All the China brands are happy if they make $30 profit per phone. Right?" Do you realize that most of those "China brands" are bankrolled by their goverment? Besides, most of those brands (ZUK, LeEco, UMi) make money from the services they provide through their phones, rather than making more from the hardware sales.

11. Klinton

Posts: 1409; Member since: Oct 24, 2016

So what? I don't speak about brands making only services. But international China brands. So you are OK, Apple to make profit more than every brand combined? But most of this profit not to benefit US and stay away?

15. trojan_horse

Posts: 5868; Member since: May 06, 2016

So you are OK, Apple to make profit more than every brand combined? But most of this profit to not benefit US and stay away?" Woah, I didn't say that. Did I? No. All what I replied to, was your sentence about "China brands making $30 profit" per each phone sale. So, I said that them making 30 dollars per sale doesn't necessarily dent their business, as many of them do not solely rely on hardware sales of smartphones to make money.

20. Klinton

Posts: 1409; Member since: Oct 24, 2016

Well, but I didn't speak about what you try to put me on,(BTW this case was in India, about China I haven't heard, but it could be, though) I speak about companies like Xiaomi , Huawei, Oppo and such. Selling internationally.

9. ameran

Posts: 344; Member since: Dec 04, 2013

Would never happen, because people would not be able to afford expensive iPhones, sunless all illegal immigrants would work for Apple instead of being sent back to their original countries.

24. Rocket

Posts: 669; Member since: Feb 24, 2014

do you really believe that trump will be able to send all immigrants to their countries? lol thats impossible.

10. aegislash

Posts: 1514; Member since: Jan 27, 2015

Doesn't that mean the devices themselves will cost an absurd amount more due to US labor costs?

13. Klinton

Posts: 1409; Member since: Oct 24, 2016

Only if Apple try to keep this enormous profit (that keep offshore anyway) Even with BOM is double than $200 there is still a lot of profit. If Apple invest in factories for components in US(as Samsung did BTW) they could even cover the difference. Will, wouldn't it be great Apple to move their a$$es?

18. NarutoKage14

Posts: 1327; Member since: Aug 31, 2016

BOM would only increase by about $10 to compensate for additional part shipping costs. It currently costs Apple $10-12 to assemble an iPhone and that's where the double cost is at. It would probably cost Apple $20-30 to build an iPhone in the US. They could keep the price the same or raise it by $100.

16. Unordinary unregistered

Look at all you financial specialists and political professionals! Cute

19. NarutoKage14

Posts: 1327; Member since: Aug 31, 2016

Doesn't take a specialist to speculate. Look at all them analysts that PA mentions all the time.

21. technitude

Posts: 263; Member since: Dec 19, 2013

The manufacturing costs of the iPhone (after suppliers cost) is only a tiny fraction of what you pay for it. If suppliers also are here, then that might raise the costs to consumers, but even then not by much.

29. Bozzor

Posts: 248; Member since: May 02, 2012

This is just stupid: forcing Apple - or any company - to make a non-defense related product in a country is just going to add to end costs for consumers...and speed up the research into highly automated manufacturing, which will remove the bulk of the jobs anyway. Trump thinks that this will create more wealth in America. At best, it will create a short term spike, then completely implode wealth as trade wars are launched, then research into robotics and related tech sees the jobs cease to exist. Trump may have one or two good ideas, but in the end the guy is not so much a racist as a scumbag who exploits peoples fears and hatreds for his own ends, and knows very little about how the modern high tech manufacturing value chain really works. This will be a painful lesson for America in how business really works.

30. FlySheikh

Posts: 444; Member since: Oct 02, 2015

Took the text right out of my thumb... lol

31. therealestmc

Posts: 679; Member since: Jul 23, 2012

I hope Donald Trump does everything he promised during so he can completely destroy our economy. Inky that way the American people will learn. I love saying " I told you so".

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