Foxconn studying possibility of manufacturing iPhones in the USA

Europa

Moderator
Senior Moderator
Dec 12, 2008
28,365
5,506
113
Utah
#2
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.
 
Nov 18, 2016
10
1
3
#3
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.
Not if import taxes shoot up under the next government.
 

Europa

Moderator
Senior Moderator
Dec 12, 2008
28,365
5,506
113
Utah
#4
Not if import taxes shoot up under the next government.
Doubtful it would be enough to stop them. The only way I could see it working is if iPhones started costing > 2K.
 

Rafagon

Genius
Gold
Dec 7, 2011
7,566
1,254
113
44
Miami, Florida
#5
Doubtful it would be enough to stop them. The only way I could see it working is if iPhones started costing > 2K.
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.
 

Ohmster

Member
Silver
Jan 26, 2008
533
21
18
SoCal
#6
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.
 

brdmsd

Member
Bronze
Jul 18, 2007
169
19
18
#7
If tariffs are imposed the cost of the tariff will be passed on to consumers. This is why trade agreements are not always bad.
 

Ledsteplin

Genius
Gold
Oct 29, 2013
4,819
985
113
65
Florence, AL
#8
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.
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.