Tech giant Apple is reportedly planning on moving its manufacturing operations out of China and into the U.S. The move by the Cupertino-based company to relocate its assembly supply chain into the country is largely being considered as a response to the election of Donald Trump as president.
For years now, Apple has been relying on its manufacturing partners Foxconn Technology Group and Pegatron in China for the production of its various gadgets such as the iPhones, Macs and iPads. However, during the presidential campaign period, the company came under fire after Trump criticized its decision to maintain its assembly line outside the country.
According to Trump, Apple’s insistence on producing its products in China deprives the U.S. from generating additional jobs for the public. As a result, the president-elect promised to increase the tariff on goods manufactured in China by up to 45%.
Apparently, Apple has already been preparing to manufacture its products in the U.S. According to sources close to the matter, the company has asked Foxconn and Pegatron to look into the possibility of relocating the production line in the country.
Although Foxconn has already complied with Apple’s request, Pegatron declined to cooperate due to its concerns regarding the cost of such a move. As noted by sources, the cost of making Apple products in the U.S. could double, according to Nikkei.
However, if the production of apple goods will still remain in China, the cost will still increase if Trump makes good on his promise to boost the tax imposed on imported items. Based on this scenario, Apple could actually be able to save on manufacturing expenses by keeping the assembly supply chain in the United States.
But, whether Apple proceeds with this plan or not, it will most likely not be the first company that will reconsider moving its manufacturing operations in the country. Due to the possibility of facing higher taxes for goods made outside the U.S., other tech firms might also make plans to relocate their production lines.
