The idea that a made in USA iPhone would be impossible has never died, despite Apple’s repeated explanations.
Now, the Financial Times has weighed in to explain why even the few American components aren’t actually made in the USA. They also list 2,700 reasons that the idea is so impractical.
Made-in-USA iPhone concept will not die
This idea has been around since more than a ten years, and was given new attention in 2016 when Trump called on the company. The Massachusetts Institute of Technology calculated the cost of assembling iPhones in America. However, the move would result in a very small impact on costs. This is because the process would be almost completely automated and would generate almost no US jobs. Apple wants to make more products in USA but uses a very uninspiring example.
Since then, there have been many discussions:
- Further evidence that making iPhones in USA would not create jobs
- Supply chain experts say Trump’s promise to produce Apple products in USA is impractical.
- Apple asks for clearance to manufacture more products in USA but gives a very uninspiring example.
The FT now performs. A detailed analysis shows that the latest iPhone models contain 2,700 parts. In a teardown most of these components would not be recognizable as such, as what we see as a single part is actually made up of dozens of different elements.
More than 700 production sites produce components for an iPhone. Only 30 Apple suppliers are located outside of China.
The biggest argument against this idea is that these Chinese manufacturers are all located close to each other and work closely together to produce the parts required. It took China decades to create the intricate supply chain that makes products like the iPhone feasible. It would take the same time to recreate the system anywhere else.
Certain iPhone components are
made in the US. These include the display glass, and Face ID lasers. The article notes that even this doesn’t tell you the whole story.
While the iPhone’s display is made in the US and the touchscreen elements, such as the backlit screen, are made in South Korea, they are assembled in China.
While the iPhone’s display is made in the US and the touchscreen elements, such as the backlit screen, are made in South Korea, they are assembled in China.
Moving the production to the US also makes no political sense, according to the Financial Times. Right away, the Trump administration is pressing Apple to move. But even if Apple made the decision, the timescales would be so long that not much would have been done before the end the current presidency. Andy Tsay, professor at Santa Clara University of information systems, says that it makes no sense to pander for a president that will be gone in four years.
The American system, as it is, does not encourage business investment. Everything can flip-flop in four years. When people or companies invest, they need a longer-term horizon.
The entire piece makes for an interesting read.
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