iPhone 7 jet black manufacturing image 006
After the United States President-elect Donald Trump promised tax incentives to Apple to build “Made in USA” iPhones, Japanese outlet Nikkei reported that Tim Cook & Co. already asked back in June its contract manufacturers Foxconn and Pegatron to look into assembling iPhones domestically. Foxconn reportedly complied, but don’t expect other Chinese vendors in Apple’s vast supply chain to follow suit.

As reported Wednesday by Chinese-language outlet qq and cited by trade publication DigiTimes, most Chinese supply chain makers will not follow Foxconn even if Apple decides to shift production to U.S.

That’s because moving production into the United States would incurred additional costs in environmental accommodations, in addition to higher labor and operating costs. China-based iPhone cover glass maker Lens Technology specifically indicated it will not set up production lines in the U.S. due to labor supply despite the fact that power and land costs are lower in the U.S. than in China.

Lens Technology employs about 70,000 workers, aged below 45. By contrast, most labor in the U.S. is older that 45 years, the company said, adding that many workers in the U.S. are reluctant to accept varying working schedules.

With many parts that go into iPhones being produced in Asia and sourced from Chinese and Taiwanese suppliers, moving Apple handset production to the U.S. is easier said than done. Apple would need to move its entire supply chain to the U.S., including makers of display panels, lens modules, touch panels, batteries, cases and so forth.

These vendors are all within spitting distance of each other and can adapt quickly to changing market conditions. One unnamed supplier said that molding metal components to order takes ten days in Shenzhen versus up to one month in the U.S.

Source: DigiTimes

  • leart

    i would love a iphone MADE IN USA..

    • askep3

      The question is, how much Moreno would you pay for one?

      • rhzszm

        Wouldn’t you like to know.

        Why doesn’t Apple test to see what the most someone in China or Germany will pay and give us fellow Americans a good deal?

      • Rowan09

        Won’t work. Labor is the biggest issue. Unless we don’t mind our taxes raising a lot more it won’t happen in the US. We can some parts made here, but assembly would have to be somewhere else or done by robots.

      • rhzszm

        LOL WUT

      • Rowan09

        Who would be paying for these cuts given to companies? Answer is us so if we want these things, our taxes will raise.

      • rhzszm

        What cuts?

      • Rowan09

        Our President Elect said he would give companies cuts if they make products here. Who is going to pay for these incentives?

      • rhzszm

        Oh, those cuts. I suspect the new leadership is going to examine the cuts we already give them!

      • Rowan09

        If that was it, they would already have a lot more jobs here.

      • rhzszm

        Jobs doing what?

    • Bugs Bunnay

      right there with ya

      • Rowan09

        The same jobs they are trying to get here now.

  • techfreak23

    “By contrast, most labor in the U.S. is older that 45 years, the company said, adding that many workers in the U.S. are reluctant to accept varying working schedules.”

    And therein lies part of the unemployment problem in the US. There are a lot of people who think certain jobs are beneath them or won’t shift their schedule around to fit a requested work schedule. If you NEED a job, you can’t really afford to be picky about it. Also bothers me when people say that immigrants are taking all of our jobs. Well those are usually the jobs no one else wants.

    • sabbadoo32

      Are you talking about fast-food, landscaping, etc; or are you talking about advanced tech? If one has worked for 7-10 years and built up a family and lifestyle around $50-65k/year, is a $35-40k job beneath them? Or is it simply not enough?

      If they take the lower income and then try to work part time, I would imagine you’ve heard the stories of how working 2 jobs means a less effective employee, parent, etc. Or is that all bullshit in your world? You are trying to shoehorn less money for kids, food, transportation, etc into dusty old political rhetoric.

      Foxconn line workers make $2.50-$5.00/hour, local wages. This isn’t going to magically turn into $25-40/hr jobs in the US. Apple making an iPhone in the US is going to become a battle cry for those that don’t understand the details of manufacturing and supply chain management–and don’t want to either. They just want it to happen, like Immaculate Conception.

      • techfreak23

        This article isn’t even talking about high skilled jobs. It’s talking about production line manufacturing jobs that don’t require a high skill set. They’re not talking about bringing the R&D centers here to the States, just the manufacturing and assembly aspect of it.

      • sabbadoo32

        In terms of “jobs Americans won’t do” what does that mean? If there’s a single mother interested in working a job like this but can’t coordinate a reliable babysitter around the variable schedule they speak of in the article, what should she do? Not have a child, or not get divorced?

    • rhzszm

      You can build cheaper anywhere there are starving people but American companies need to hire American workers first. They need to exhaust absolutely all possibilities before importing people for “critical work” they won’t pay an American top dollar to do.

    • Rowan09

      It’s better to not take a job be on assistance than to take a low paying job and be too rich for assistance. I voted for President Obama twice but while they brag about unemployment being low, I care more about how many high paying or skilled jobs were created. Wages are way too low for example minimum wage in NY is $9 while no one can have an apartment or even rent a room and survive on $9. In some other states where the cost of living is lower minimum wage is higher and I’m assuming it due to population. We need to fix this issue before telling poor people just take any job.

  • Bugs Bunnay

    and how many trillion dollars in debt are we? let’s not talk about other countries when we got problems of our own back at home.

    • Jake1047s

      And getting along with every nation will not only help us but it will help them. but if you can’t see that then there’s nothing on this blog that I can say that will change that…..

      • Bugs Bunnay

        you must be joking. what year is it? were we all born yesterday?? you think every nation will help you if you help them? WRONG. it was not until trump said that they (nato) should their part to help out instead of leaching off of us. now that he’s in the office guess what? nato is finally taking part now. I CAN see what you’re saying, but that is not the reality now is it? cmon jake.

  • rhzszm

    Yeah, that’s not going to work, not the rebuilding of manufacturing Americans have in mind. Tim Cook should be ashamed of himself if he plans to import a million Chinese to America to live on factory plantations making the same bowl of rice salaries.

    And where are all these Chinese workers supposed to live, send their kids to school? I suppose they’ll all be on Obamacare too, right?

    What a raw deal for the American people. They pulled this same kind of crap in the garment industry in Italy… Imported Chinese labor to live on factory plantations in Italy so they could say “Made in Italy” on the clothing.