By Ribhu ., | November 19, 2016
Apple is under pressure to move its manufacturing arm to the US from Asia. (WikiMedia Commons)
Apple could face substantial tariffs on its import if the company refuses to manufacture its products in the United States. Apple insists that America is not an ideal location for production because of several factors like the absence of an efficient framework, high expenses, and unskilled labor.
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Apple has allegedly asked its contractors - Foxconn and Pegatron - to see whether its assembling unit can be moved from China to the US. The demand is in line with US President-elect Donald Trump's statement that Apple should bring its producing jobs to the American people. This was one of the main agendas of Trump's campaigns - bring back jobs to the United States.
Foxconn is said to be considering the demand while Pegatron has said that it cannot comply due to cost concerns. Apple has long been manufacturing its iPhones, iPads, and Macs in China where cost is modest, and supplies of segments are adjacent.
However, with Trump's import policy, Apple needs to measure its alternatives. Manufacturing in the US could double the cost of Apple's devices, according to 9to5Mac. Apple's products are already considered quite expensive, making it a risky move for the company to move its manufacturing unit to the US.
Apple CEO Tim Cook has admitted in the past that it would be difficult to manufacture Apple devices in the US. He thinks the "mind drain" of American workers could be the reason. Besides, American workers will most likely be unable to handle the tedious work that their Chinese partners do.
For the time being, the likelihood that Apple may move its assembling base in the US is low. What Apple can do is bargain with the Trump administration to manufacture some parts of its iPhone in the country.
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