As Presidential election in the USA seems to be getting more intense each day due to endless accusations and bitter allegations, Apple-not surprisingly-has faced the ire of political candidates.
The presumptive Republic nominee Donald Trump is opposed to free trade; asserting the tech giant must produce iPhones in the United States.
What if Apple begins to make iPhone in the US, will it cost less or more? According to MIT Technology Review, iPhones will cost $30-$40 extra if assembly work would be carried out in the USA.
“Assembling those components into an iPhone costs about $4 in IHS’s estimate and about $10 in the estimation of Jason Dedrick, a professor at the School of Information Studies at Syracuse University. Dedrick thinks that doing such work in the U.S. would add $30 to $40 to the cost.”
Higher labor costs, additional transportation, and logistics expenses will make Apple’s smartphone more costly.
“That’s partly because labor costs are higher in the U.S., but mostly it’s because additional transportation and logistics expenses would arise from shipping parts, and not just the finished product, to the U.S. This means that assuming all other costs stayed the same, the final price of an iPhone 6s Plus might rise by about 5 percent.”
Though Apple has suppliers in as many as 28 countries, most of them are belong to just four countries.
The Cupertino-based company requires a huge labor pool. However, most of the people are employed in other companies.
About half (346) of Apple’s 766 suppliers including those making parts for iPhones, Macs, iPads, belong to China. While Japan has 126 suppliers, the US and Taiwan have 69 and 41 respectively.
An iPhone consists of about 75 elements. Most of the materials which are used in making the phone are not available in the USA. As for instance, aluminum comes from bauxite but unfortunately there are no bauxite mines in the United States.