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How much will it cost iPhone, if it will begin to produce in the United States

Last week the new US President, Donald trump has posted on YouTube its first performance in the new status, except for a victory speech immediately after the election. 2.5-minute video he touched upon trade issues States with other countries.

Trump said that on the first day of his stay in office he will announce “intention to withdraw from the TRANS-Pacific partnership, disastrously disadvantageous to our country.”

Americans tend to support the domestic manufacturer, but, of course, the goods collected in the territory of the country is noticeably more expensive counterparts, made in China, Vietnam and Mexico. Business Insider decided to find out what time the Americans would be cost iPhone, if it was first produced in the USA.

During the race, trump said that his administration will force Apple to collect smart phones and computers overseas and in the United States. According to the publication Nikkei Asian Review, Foxconn is performing the assembling devices for Apple has studied the possibility of moving the production of iPhone in the United States. Sources indicate that in this case the cost of the phone will grow “more than twice”.

Edition Marketplace conducted its own evaluation and got similar results. According to their estimates, if all the components of “Apple” smartphone will be manufactured in the US, the cost of the device will soar to $600, and that means taking into account the margin of Apple in the retail unit will cost about $2000.

According to experts, MIT Technology Review, iPhone if the Assembly will be held in the United States, but from foreign components, the manufacturing cost of the smartphone (it is now estimated at $230) will increase by about 5%. If components are to be manufactured in the United States, but from raw materials purchased on world markets, to the cost of production will add another $30-40, which will be reflected in the retail price.

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According to Dan Panzica, chief analyst, Outsourced Manufacturing Intelligence Service, IHS, Markit Technology, these estimates overlook a very important factor is the workforce:

“Suppose you are going to move to USA great production, but where will you find workers?”

Before Panzica worked at Foxconn, and it is estimated that for the production of components and assembling the iPhone 150 000 people.

“The total number of workers at GE, GM and Ford 20% less than four plants of Foxconn. In which city you can build the plant for 60 000 workers?” – asks the analyst.

In his opinion, the United States has never had the infrastructure to create the electronic components of the iPhone, so the transfer of production will mean the actual creation from scratch within the United States the entire production chain, which grew in Asia over the past few decades.

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