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United States manufacture of the iPhone impedes "bolts"



Screws

The New York Times edition found out what problems Apple will face if suddenly faced with Donald Trump's suggestion, it will hand over US production from China to the United States.

In 2012, Tim Kook announced that Apple would build a Mac Pro computer in the US. This project was not implemented and the reason was unexpected and primitive – no company in the United States was able to deliver the required number of screws – 1000 pieces. Day. Apple was forced to order screws from China and as a result, Mac Pro entered the market with several months of delays. Then Apple realized that it was not possible to produce mass-produced products in the United States. Now Apple cannot take this risk again. Interruptions in the supply of any components will result in downtime at the plant, which will lead to scarcity, reduced sales and reduced revenue.

One problem causes the other. If Apple switches to the manufacture of smartphones in the United States, the company will have to deal with many other tasks, including the same screws or cables. As a result, cheap products will be very expensive: you have to take into account the cost of purchasing or purchasing production lines, purchasing raw materials, paying American workers, taxes – all this costs much more than in China. Of course, Apple employs procurement logistics analysts and, to say this, Apple could order several tons of screws in China and deliver them to the US, but even in this case the costs would be excessive. Now that both iPhone assembly lines and the iPhone's simplest component suppliers are in China, it's much simpler: at Foxconn or Pegatron, you can take a new bag at any time by paying with a rice bag. No country in the world can compare China with the level of industrial infrastructure development, and the situation has not changed in recent years, on the contrary, everything can be found in the country at any time and in quantity.

There are other factors to consider. Remuneration for employees collecting Apple products in China is about $ 3 an hour, and a similar job in the US would be paid several times more expensive. The transfer of production in the United States would lead to higher costs and lower profits, but investors are unlikely to allow it, so much of the cost of assembly will be reflected in the final price of the product. Smartphone assembly in Apple's partner factories is done with advanced technology, and smartphones won't get better because they're installed in the US, but their costs will be much higher. This is especially important now that Apple is losing market share in key markets at a time when competitors are offering comparable quality smartphones with less money.


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