http://www.dailymail.co.uk/news/art...ng-assembling-iPhones-outsourcing-abroad.htmlAre the aftershocks of Donald Trump’s election being felt in Silicon Valley?
Apple has asked one of its Asian partners who helps assemble its signature product, the iPhone, to begin examining the possibility of moving production to the United States, Nikkei Asian Review reported on Wednesday.
Although the request was made in June, it is significant in light of the election of Trump, who ran on a platform of anti-corporate populism fueled by the loss of domestic manufacturing jobs.
Hon Hai Precision Industry, the Taiwanese multinational which also goes by the name Foxconn Technology Group, is a contract manufacturer and one of two firms hired by Apple to assemble the iPhone.
The other, Pegatron, which is also based in Taiwan, declined Apple’s request, citing cost concerns.
The two companies make over 200 million iPhone devices every year.
'Apple asked both Foxconn and Pegatron, the two iPhone assemblers, in June to look into making iPhones in the US,' a source told Nikkei Asian Review.
'Foxconn complied, while Pegatron declined to formulate such a plan due to cost concerns.'
Foxconn, the world’s largest contract electronic manufacturer, is also Apple’s largest client.
Though it complied with Apple’s request for a study, its founder, Terry Gou, has also expressed misgivings about the production costs of establishing a US-based operation.
‘Making iPhones in the US means the cost will more than double,’ a source said.
It is believed that Apple and its partners are increasingly nervous about a Trump presidency.
During his election campaign, Trump vowed to impose tariffs on US-based companies that rely on cheaper labor overseas.
More winning by Mr. Trump. Get used to it. There's more to come.