Hon Hai Precision Industry, more known as Foxconn Technology Group, considers the possibility of transferring iPhone assembly to US territories, Japan edition Nikkei Asian Review reports, quoting the sources, Take-profit.org reports.
According to information from the sources of edition, Apple asked Foxconn and Pegatron to consider the possibility of transferring iPhone assembly to US territories instead of China. Foxconn agreed, Pegatron refused due to concerns about expenses.
According to mass media, the transfer of production of devices will increase its prime cost twice. Each year, 200 mln iPhones of different modifications are produced at Foxconn plants. Officially, Apple, Foxconn and Pegatron do not comment on this situation.
As Nikkei reports, Apple’s CEO Tim Cook repeatedly confirmed that the Chinese invested huge funds in order their country becomes the center of global production and the similar economic climate is impossible to reproduce in any other place of the world.
The reason for possible transfer of production to the USA are the claims, which Donald Trump put forward before the victory at presidential elections. The President-Elect promised his voters new jobs, including by virtue of compulsion of large companies to transfer production from China to USA.
In case of development of this scenario in reality, Apple will face huge expenses for creation of infrastructure for production of equipment in the USA. It will definitely impact the cost of end products.
Even in spite of huge cash reserve, the decision on halting assembly line in China will result in expenses, significant even for the richest high-technology company of the world.
Generally, with the advent of Trump, Apple can fall into disgrace with new authorities. In his pre-election campaign, Trump repeatedly said that modern technologies got beyond the control of the state. The situation with Apple’s denial to provide FBI with access tools to blocked phone of San Bernardino shooter became one of the most burning issues during the elections.
Trump encouraged boycotting Apple’s products, and if he becomes the US President, he promised to cut down to size Tim Cook. Things even came to such a pitch that maximally apolitical Tim Cook even assailed with criticism on Trump in one of his interviews, while Apple publicly refused to sponsor the pre-election campaign of Republicans, for the first time in the history, taking the side of the Democrats.
