Report: Apple exploring possibility of manufacturing iPhones in U.S.

Apple has been asking its suppliers to study the possibility of moving iPhone production to the U.S., according to a new report by Nikkei Asian Review. Back in June, Apple reportedly approached both of its major iPhone assemblers, Foxconn and Pegatron, asking them to look into making iPhones in the U.S.; Foxconn agreed, but Pegatron declined due to cost concerns. Sources for the report indicated that although Foxconn has been working on outlining a plan for Apple, Foxconn Chairman Terry Gou had been “less enthusiastic” about it as production costs would inevitably rise — the cost of producing an iPhone in the U.S. would be expected to more than double. The move from Apple appears to be due to concerns about U.S. President-elect Donald Trump’s promises to push U.S. based companies back to domestic manufacturing, promising to slap a 45 percent import tariff on any goods made in China. In addition to increased costs, however, moving full iPhone production into to U.S. may not even be feasible due to a lack of skilled workers and a cluster of domestic suppliers of components.

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