According to a new report by news outlet Nikkei, Apple has been in dialog with both Foxconn and Pegatron, two of the manufacturers involved in assembling iPhones and other Apple hardware in China, to look into the possibility of moving production of its devices to the United States. Currently, the vast majority, if not all, of Apple’s iPhones, iPads, Mac and accessories are assembled in China.
The report claims that whilst Foxconn is actively researching the possibility of moving some of its work to the United States, Pegatron has refused to do so over concerns about the costs that such a move would entail.
Sources confirmed to the publication that moving iPhone production to the United States alone would cause manufacturing costs to more than double, which is obviously something that neither its partners nor its customers would want to happen.
After all, increases in costs almost always result in an increase at the checkout. With Apple’s new 2016 MacBook Pros receiving flak for being more expensive than previous models, an even harsher increase in price for the rest of Apple’s product lineup is unlikely to be welcomed by anyone.
The request to work on moving manufacturing to the U.S. comes following incoming President-elect Donald Trump’s previous threats to force Apple to make its “computers and things” at home rather than China, and while it’s hugely debatable as to whether such a thing is enforceable, it makes plenty of sense for Apple to begin testing the waters in such matters. The Mac Pro, for example, is already built in the States, though it can hardly be compared with the iPhone for both cost and the number of units sold.
We will have to wait and see whether Apple’s request of Foxconn and Pegatron turns into anything more concrete, but right now, we wouldn’t want to bet on Apple moving manufacturing to the United States at any kind of scale. Not yet, at least.
(Source: Nikkei)
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