Tech

Apple iPhone Manufacturing Partners To Explore The U.S.

By Monica U Santos , Nov 19, 2016 02:58 AM EST
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The US president-elect Donald Trump really wants Apple to move its iPhone production to their country and he may be happy to know that Apple is considering it. According to a report, Apple company has approached the two manufacturing companies that are largely responsible for assembling iPhones, the Foxconn and Pegatron. Foxconn is apparently exploring the possibility, while Pegatron has elected to decline due to cost concerns.

Apple iPhone To Explore U.S.

According to a report in Japanese newspaper The Nikkei, Foxconn, Apple’s key manufacturing partner, is among a number of supply chain companies that are said to be exploring the potential to relocate iPhone production facilities from Asia to the U.S.

According to Tech Crunch, Nikkei claims that Foxconn “has been studying the possibility” of opening manufacturing facilities on U.S. soil. Pegatron, another key producer of Apple components, is said to have rejected the suggestion on account of the increased costs associated. Apple already has invested in some hardware production to the U.S. with a Mac facility in Texas.

The news comes in the morning after the U.S. election and promises that the winning candidate made in the lead-up to it. President-elect Donald Trump criticized Apple’s overseas production capabilities a number of times during his campaign, citing lost jobs for America, pledging, for example, “We’re going to get Apple to build their damn computers and things in this country instead of in other countries.”

Trump On Apple Exploring U.S.

According to The Verge, moving Apple iPhone production overseas would likely be a pricey endeavor, with The Nikkei sources claiming that it would increase production costs by nearly 50 percent, which makes sense given that the vast majority of Apple’s part suppliers are already located in Asia.

Motorola also tried to move smartphone manufacturing to America, but the experiment ended in 2014 when Motorola closed the factory due to costs. Apple has made some efforts in bringing hardware production back to America in the past — most notably, the Mac Pro in 2013, when the company invested over $100 million dollars to jumpstart production — but relocating iPhone manufacturing to the United States would be a move of a vastly different scale.

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