There is a chance that iPhone productions would soon move from China to the United States. A move that echoes one of President-elect Donald Trump’s pledges during his presidential campaign.
That is if a report published by the Nikkei Asian Review is anything to go by. Reliable sources supposedly told Nikkei that back in June Apple requested two of its iPhones assemblers, Foxconn and Pegatron, to look into moving their activities to the United States.
In response to Apple’s request, Foxconn is reported to have complied, while Pegatron declined citing concerns about cost on such a move. There is no doubt that if/when Apple and partners decides to close down manufacturing and assemblies plant overseas and move stateside, it will be at a tremendous cost.
The huge cost will not just be on Apple, the iPhone production companies, and the countries where they currently operate. This cost will eventually be passed on to the end consumers, who will have to spend more on purchasing these iDevices, which are already considered to be expensive.
Nikkei’s source is quoted saying, “Making iPhones in the U.S. means the cost will more than double.”
On the flip side, Apple moving iPhones production to the United States will go a long way in creating more jobs for Americans. Currently, the Cupertino Company employs over 2 million people in the U.S., from engineers, operation, retail and call centers employees, to delivery service drivers. That is according to a statement by Apple’s spokesman sent to Fox News.
In part, the Apple spokesman said, “We work with over 8,000 suppliers from coast to coast and are investing heavily in American jobs and innovation.”
How does it affect U.S. – China Trade Relations?
Should Apple move production from China to the U.S., it would mean Trump’s pre-election pledges are being made good. Trump has on a number of occasions called China a “currency manipulator.” He also said, once elected President, he will impose tougher tariffs on China’s exports.
China seems to have preempted and planned counter actions should Trump presidency live up to its pre-election pledges. A Chinese publication, the Global Times, posted China’s warning to the U.S. should they start a trade war.
“US auto and iPhone sales in China will suffer a setback, and US soybean and maize imports will be halted. China can also limit the number of Chinese students studying in the U.S.