Time and again, it has been suggested to Apple that it should start manufacturing iPhones in the United States. The company’s contract manufacturers are located in China and the supply chain is heavily reliant on suppliers based across Asia. However, Pegatron, one of Apple’s manufacturing partners, has said that it’s possible to start production in the United States if Apple “absorbs the costs.” That’s just a more modest way of saying that Apple will have to pick up the bill.
Pegatron CEO Liao Syh-jang was recently asked at an investor conference about the company’s plans regarding the expansion of manufacturing to the United States.
He told the gathering that Pegatron is open to start manufacturing in the United States but also pointed out that the client would be the one that has to absorb all of the related costs. So if that client were to be Apple, it would have to pay for all of the costs associated with manufacturing the iPhone in its home country.
That would obviously have an impact on the company’s margins and one of the ways to counter that is by raising prices so you can see why this is easier said than done.