Foxconn studying possibility of manufacturing iPhones in the USA

Discussion in 'iPhone 7' started by Rafagon, Nov 17, 2016.

  1. Rafagon

    Rafagon Genius
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  2. Europa

    Europa Moderator
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    Not gonna happen. And if they try it, it will fail. Asian supply chains have surpassed what's in the US and labor here is too expensive. They only way to ensure millions of iPhones can be made quickly and inexpensively enough to turn a good profit is to manufacture them outside of America.
     
  3. Declan Mills

    Declan Mills New Member

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    Not if import taxes shoot up under the next government.
     
  4. Europa

    Europa Moderator
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    Doubtful it would be enough to stop them. The only way I could see it working is if iPhones started costing > 2K.
     
  5. Rafagon

    Rafagon Genius
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    I just looked up how much the employees make over there at Foxconn. Assuming 80 hours per two weeks (and this is just an assumption), it comes out to about $2.50 an hour. I think you’re right. In the USA they would probably have to be paid, at a minimum, $10 an hour for that type of labor.

    Update: Article is from 2012, so they may be making more now.
     
  6. Ohmster

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    It certainly could happen. I've been in the operations/manufacturing space for over 25 years...and have taken products both to and from China, Japan, India, Taiwan, Germany, Mexico, France, and the US.
     
  7. brdmsd

    brdmsd Member
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    If tariffs are imposed the cost of the tariff will be passed on to consumers. This is why trade agreements are not always bad.
     
  8. Ledsteplin

    Ledsteplin Genius
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    But there's costs involved in the importing from China that would not be relevant if made in the US. That offsets the salary difference a great deal. I think it can be done with little cost increase.
     

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