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Say Cheese: Foxconn to build U.S. plant in Wisconsin?

Posted: , by Alan F.

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Say Cheese: Foxconn to build U.S. plant in Wisconsin?
During the 2016 presidential election, Donald Trump called on Apple to move production of its most popular product, the Apple iPhone, to the U.S. Trump's goal was to create more jobs for Americans and to stop exporting openings overseas. But Trump didn't take some things into consideration. Moving production from low wage countries to higher wage countries means that the cost of producing the iPhone will rise. And in order to maintain the same profit margin, iPhone prices will also rise making the device less affordable for Americans.

Back in November, a little over a week after the election, Apple said that it would consider moving some iPhone production to the U.S. Talks were held with the major contract manufacturers and there was some discussion about building a U.S. based supply chain. Today, Foxconn, the leading iPhone assembler, said that it is considering building a facility in Wisconsin. Besides the Dairy State, Michigan is also said to be in the running to host the factory.

Yesterday, President Trump visited Milwaukee and mentioned that an unnamed company was negotiating with the state to build a factory. Trump said that Wisconsin Gov. Scott Walker might get "a very happy surprise very soon." Foxconn assembles smartphones and tablets for Apple, BlackBerry, Sony and other brands. In China, it employs over 1 million people. Tom Still, president of the Wisconsin Technology Council, says that a skilled workforce was probably one of the things that attracted Foxconn to the state.

"It would be great for Wisconsin for a lot of reasons. I am assuming Foxconn was attracted by the fact there’s already a skilled workforce here, and there’s a foundation to produce more such workers through the tech colleges and the other parts of the education system."-Tom Still, president, The Wisconsin Technology Council

When Apple spoke with Foxconn and Pegatron back in November about the possibility of building iPhone models in the U.S., both firms said that their main concern was creating a supply chain infrastructure similar to what was available for the manufacturers in China. Apparently the numerous studies that were created show that Wisconsin has what it takes to build such a supply chain for Foxconn.

source: WisconsinStateJournal via MacRumors

  • Options

posted on 14 Jun 2017, 21:42 2

1. ahmuzencab (Posts: 176; Member since: 12 May 2017)

Hopefully. This could be a good move for American growth and Foxconn themselves.

posted on 14 Jun 2017, 22:12 1

2. NoAllegiance (Posts: 382; Member since: 21 Mar 2016)

Speaking of iPhone prices rising, any idea what iPhone 8 will cost? I am betting it will be $1099 for 256GB. Or Apple will probably surprise us and make the first 512GB phone, since iPad has that option.

posted on 15 Jun 2017, 06:28 1

16. ibend (Posts: 6632; Member since: 30 Sep 2014)

$1099 for iPhone7s 256GB
and $1499 for iPhone8

posted on 14 Jun 2017, 22:38 2

3. Tabby_Tiger (Posts: 275; Member since: 23 Jan 2017)

Hopefully only higher prices for the US and not the rest of the world.

Apple charges a big enough premium as it is!

posted on 14 Jun 2017, 22:45 3

4. Klinton (Posts: 770; Member since: 24 Oct 2016)

MAGA !!!!!

posted on 14 Jun 2017, 23:46

6. Myphoneisonfire (Posts: 347; Member since: 05 Sep 2016)

China's cost of labour is 10 times lower than USA , they'll put a plant here and make 1% of the production just to show that they are actually manufacturing something in USA

posted on 15 Jun 2017, 02:12

11. Furbal (Posts: 37; Member since: 19 May 2017)

And that is fine. Thousands of jobs>no jobs

posted on 15 Jun 2017, 04:22

15. aksa123 (Posts: 341; Member since: 30 Jan 2014)

Well true but remember that more growth is almost impossible, because US economy is already running at full capacity (low employment rate).

posted on 15 Jun 2017, 00:35

7. omnitech (Posts: 869; Member since: 28 Sep 2016)

Moto closed their US factory in like a month. It was quite sad.

Of course Apple can easily just lower their profit margins to keep this factory running forever but the question is will they?

I highly doubt it.

posted on 15 Jun 2017, 01:46 1

10. airoid (Posts: 66; Member since: 13 Dec 2016)

They build factory in freezing Wisconsin because these workers are sweating by working so hard haha

posted on 15 Jun 2017, 02:49 1

12. BuffaloSouce (Posts: 231; Member since: 01 May 2017)

But will there be safety nets?

posted on 15 Jun 2017, 03:21 1

13. Myphoneisonfire (Posts: 347; Member since: 05 Sep 2016)

Apparently safety nets are being put around Oneplus 5 buyers houses when they announce the price of OP5. Lmao

posted on 15 Jun 2017, 03:40

14. fyah_king (Posts: 1009; Member since: 22 Jul 2013)

$2000 for the new iPhone and it would still sell like hot cakes. The lines are already forming as I type.

posted on 15 Jun 2017, 10:29

18. sissy246 (Posts: 3921; Member since: 04 Mar 2015)

Yes some would pay that Fyah_king , i don't think as many would as you are thinking. Even smart people have a limit on what something is worth spending hard earned money on.

posted on 15 Jun 2017, 08:20

17. nicknack84 (Posts: 36; Member since: 02 Dec 2011)

Even if Apple increases the price, people will still buy them. And this isn't a sheep post or something stupid like that. It's the truth. I'm not an apple user, but they make a good product. It's a solid phone with a smooth operating system. People will still buy, and with more and more options for purchasing, like financing thru retailers, more people can purchase. The demand won't go away. And if it brings 1,000 manufacturing jobs to America, than that's 1,000 more jobs than we had before. I'm happy to pay more for a product if it's made in America and keeps jobs here vice moving overseas.

posted on 16 Jun 2017, 01:55

21. Leo_MC (Posts: 2529; Member since: 02 Dec 2011)

US has a 300 mil market for its companies, EU a 500 mil and Asia 2-3 billion.
Who do you think will loose both jobs and money if people would think like you and are going to start buying things and services made in their continent?

posted on 15 Jun 2017, 14:32

19. PSAfromThisGuy (Posts: 59; Member since: 16 Jan 2017)

regardless of where it is made or what the cost, apple users will likely bite the bullet and pay for it even if it cost them 3 months of rent.. sad, but true

posted on 15 Jun 2017, 19:33

20. PrYmCHGOan (banned) (Posts: 335; Member since: 28 Sep 2016)

It doesn't have to raise the cost because the majority of the phone will still be built overseas.

But Apple will use it as an excuse to raise the price.

posted on 16 Jun 2017, 01:57

22. Leo_MC (Posts: 2529; Member since: 02 Dec 2011)

That plant could be full of robots.
The products get made in US, but there will be no jobs.
What then?

posted on 16 Jun 2017, 03:44

23. Spedez (Posts: 513; Member since: 29 Aug 2014)

Will they ship the Chinese cheap labor there too?

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