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Sources: Apple may have trouble moving assembly to US

updated 12:53 pm EDT, Fri June 1, 2012

Transportation, wage costs seen as major issues

Apple CEO Tim Cook's suggestion of moving production lines back to the US would be very difficult in the short term, note supply chain sources in contact with DigiTimes. The people point out that most of the companies supplying parts to Apple are located in Asia, and shipping the parts back to the US could prove too expensive.

Component makers are thought to be unlikely to follow production lines to the US, given the time and expense of moving. American workers are also much better paid than their Asian counterparts, which would affect bottom lines.

Some parts for Apple products are already made in the US, such as the A-series processors and Gorilla Glass used for iOS handhelds. The hint of moving production jobs to the US may be more of an attempt at improving the company's public perception, since Asian manufacturers like Foxconn have come under fire for labor practices such as low wages, demanding heavy amounts of overtime, and poor safety standards. The US economy remains in a fragile state, and bringing more jobs to the country might further boost Apple's popularity.



By Electronista Staff
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Comments

  1. Jeronimo2000

    Forum Regular

    Joined: Aug 2001

    +14

    Isn't that precisely...

    ... what Cook said in that interview? From what I remember the essence was that he'd love to do more in the US, but it just wasn't feasible.

    Comment buried. Show
  1. facebook_Ben

    Via Facebook

    Joined: Jun 2012

    -12

    Pointless Macnn article

    If car companies can do it, Apple can do it. Cars are much more complex and require alot more components. They could do it overnight if they wanted to. Shipping components the size of quarters is not that expensive especially when you consider the economies of scale. Apple sells alot of phones. Hopefully Macnn.com will avoid baseless articles like this in the future.

  1. Jeronimo2000

    Forum Regular

    Joined: Aug 2001

    +18

    @Ben

    As much as I love slamming MacNN for their level of "journalism" - I find it quite amusing that you accuse them of "baseless articles like this" and at the same time provide no base whatsoever for your own statements.

    "They could do it overnight if they wanted to." - and with what professional expertise can you back a claim like that? Facts, please? Sources? Numbers? Anything?

  1. Mr. Strat

    Junior Member

    Joined: Jan 2002

    +4

    I don't think so

    We don't have the infrastructure to support the volume of devices required...not enough workers.

    And do you want an iPhone assembled by some disgruntled union worker getting $25/hr?

  1. brainiac

    Fresh-Faced Recruit

    Joined: Sep 2003

    +5

    Isn't it Apple's job

    To save China, the US, the environment, and the world?

  1. hayesk

    Professional Poster

    Joined: Sep 1999

    +4

    Digitimes? Seriously

    I stopped reading this article once it mentioned Digitimes.

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