We all know that the iPhones are just Designed by “Apple in California”, but are not made there. The assembly is done by third party manufacturer and what not. Upto the iPhone 4, which is the fourth generation of the iPhone, all of them as well as the other iOS devices were manufactured by Foxconn which is based in Taiwan. In 2011, i.e. after Tim become the CEO of the company, the company changed its outsourcing strategy for increasing supply partners, etc.
All this goes to say that they are not Made in America as of now, which might be changing very very soon. Yes, according to the new reports which we have, the company has approached Foxconn and Pegatron to explore the possibility of manufacturing the iPhones in the U.S. This essentially means that the iPhones boxes may soon come with “Made in America” tag. However, we suggest you hold on to that thought just yet. It is also reported that Foxconn has agreed to look into it however, Pegatron declined to the formulate such a plan due to cost concerns.
Do make a note here that Apple Inc. is Foxconn’s biggest customer which accounts for more than 50-percent of their sales. Hence them complying to the idea is not a surprise. Making the iPhones in America also means that the cost of the production will increase, and this could be the major concern for the manufacturers as well as the customers as well. Well, we just have to wait and see how it works in the coming weeks.
Also, one of the main reason why Apple might be considering this of making the iPhones in U.S is because President-Elect Donald Trump has publicly called for the company to built its product in the U.S. Not just that, he has also threatened tariffs on imports from China. In a rally in March, Donal Trump said, “I’m going to get Apple to start making their computers and their iPhones on our land, not in China. How does it help us when they make it in China?”.
Now you might be wondering, what does it have to do anything with us? Well, there are a lot of reasons why this won’t work out well. As mentioned, the first thing is the cost. The cost of the iPhones may see a significant increase as making the iPhones in the U.S means the cost will be more than double. And not just that, most of the parts that go into making one of these iPhones, also come from the companies in Asia. To put in simple words, the closer you are to the input suppliers, the easier and inexpensive it will be to make the final product.
While there is just mere possibility of this happening, it is worth noting that the company is already making some of the product like the Mac Pro in Texas. Do make a note that the Mac Pro is a product which is sold in a lot less volume as compared to something like an iPhone. Hence, the overall cost of production is not going to make any significant difference as of now, but once the iPhones are also manufactured in U.S, the difference will be noticeable. Stay tuned for more info on this.