During Trump’s campaign, he suggested that his administration could help Apple bring their device manufacturing efforts back to the United States.
Last week, Nikkei reported that Apple’s iPhone assembler Foxconn has been looking into the possibility of moving to the United States. The report notes that if this were to happen, the cost of manufacturing an iPhone would more than double.
Marketplace also looked into the extra costs Apple would incur if they brought iPhone manufacturing to the United States. If all the components of the iPhone were made in the United States, the manufacturing costs could increase by about $600, which means that the retail cost of an iPhone could increase to $2,000.
In comparison, analysis conducted by the MIT Technology Review found that the cost of making an iPhone in the United States will rise only five percent.
The main problem in bringing iPhone manufacturing to the United States is that the infrastructure to build the electronic components needed was never in the United States to begin with. Therefore, Apple would have to build the entire manufacturing network from scratch, which would end up costing the company even more money in the long run.
[via Business Insider]