President Elect Donald Trump and his incoming administration have promised to "make America great again." That promise included a key policy position to move manufacturing -- and its jobs -- back to the United States; in particular move production of Apple iPhones to the USA:
"we have to bring Apple — and other companies like Apple — back to the United States. We have to do it. And that’s one of my real dreams for the country, to get … them back. We have a great capacity in this country."
Well, can it be done? And if so, what might the consequences be?
"Key Apple assembler Hon Hai Precision Industry, also known as Foxconn Technology Group, has been studying the possibility of moving iPhone production to the United States... Apple asked both Foxconn and Pegatron, the two iPhone assemblers, in June to look into making iPhones in the United States..."
Experts warn that moving production is complex and difficult. Not only must assembly operations be relocated, but new facilities must be located and built, plus nearby suppliers and transport services found, moved, and contracts obtained. During the globalization trend of the last 35 years, many manufacturing facilities in the USA were closed, destroyed, and replaced with other businesses. Plus, the remainaing facilities may be technologically obsolete. After solving these issues, then production workers must be hired.
With any major change, there often are unintended consequences. A possible consequence:
"Making iPhones in the U.S. means the cost will more than double... According to research company IHS Markit, it costs about $225 for Apple to make an iPhone 7 with a 32GB memory, while the unsubsidized price for such a handset is $649..."
Prices for unlocked iPhone7 with 32 GB phones on eBay range from $700 to $1,000.00. 128 and 256 GB versions cost even more. Would consumers be willing to pay higher prices, say 50 percent more, or even double?