Trump Presidency Might Pressure Apple to Move iPhone Production to U.S.

Apple is asking some of its key iPhone suppliers including Foxconn and Pegatron to shift production to U.S. following President Donald Trump’s policies promoting “made in America,” reported Nikkei Asian Review.

A source told the Japanese media, Apple requested two iPhone assemblers Foxconn and Pegatron in June to evaluate the possibilities of shifting manufacturing to U.S.

"Foxconn complied, while Pegatron declined to formulate such a plan due to cost concerns," said the source.

Apple iPhone production might be moved to U.S. in the future, and Foxconn is considering the possibility of relocating its assembly plants. (Photo courtesy of Apple)

Of the two companies, Foxconn is working to meet Apple’s demands, since the Cupertino company contributes to 50% of its revenues.

Foxconn Chairman Terry Guo was unenthusiastic about a steep price hike in production costs by moving production plants West.

"Making iPhones in the U.S. means the cost will more than double," the source said.

Following Trump’s inauguration, Apple might be under growing pressure to shift production to U.S., continued the Nikkei report.

Trump had singled out Apple in several occasions to shift computer and other electronic devices manufacturing back to U.S.

"We're going to get Apple to build their damn computers and things in this country instead of in other countries," he said at Liberty University in Virginia in January 2016.

He also announced imposing 45% tariff on goods made in China.

OLED screens found in the next generation iPhone will also come at a much later date.

Adaption of OLED screen adaption in iPhone 8 might also be hindered if Samsung cannot ramp up production by fall 2017, reported Bloomberg.

"Apple has already figured in there will be high demand for the OLED model and they’ve also figured out there will be constraints to these panels," said Dan Panzica, a supply chain analyst at IHS Markit. 

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