14 DAY TRIAL // Apple and some of its partners are reportedly looking into ways to move iPhone production to the United States, as Cupertino is trying to prepare for new laws pushed by President-elect Donald Trump to enforce domestic manufacturing for US companies.
According to a report from Japanese newspaper Nikkei, Apple already discussed the matter with its largest suppliers, including Foxconn and Pegatron, asking them to investigate plans that could allow them to transfer production lines from China to the United States.
It appears that Pegatron has already said no, most likely because of the costs that would be involved in this transition, so Apple is trying to concentrate specifically on its partnership with Foxconn should Donald Trump indeed force the company to manufacture the iPhone in the United States.
What’s more, Foxconn chairman doesn’t see moving manufacturing lines to the United States as a good idea, also because of the costs, so it’s very likely that Apple wouldn’t receive much support from its partners.
Moving just part of iPhone production to the US
But Apple is clearly trying to be prepared just in case Donald Trump goes forward with its plan to introduce big import tariffs for Chinese goods and force companies to invest more in domestic operations.
Apple was targeted directly during Trump’s presidential campaign, with the Republican saying that Cupertino will have no other option than to build its computers and phones in the United States. At this point, most Apple products are manufactured and assembled in China.
But although Apple clearly wants to be prepared for this scenario, the company is very unlikely to move the entire production to the United States. According to estimates, building an iPhone in the US would double the costs, and Apple is believed to be planning a transfer of only a part of its manufacturing process in the country in order to comply with Trump’s demands.
Additionally, Cupertino is very likely to seek financial incentives to invest in US manufacturing, especially because this would involve higher costs, but for the moment, the company is clearly preparing for the worst and tries to make sure that it won’t be caught unguarded should Trump really introduce big import taxes.