With two candidates for president of the United States saying that Apple should make more products in the country, the Institute of Technology of Massachusetts has been missing accounts to see how far it would be practical this change. Apple currently assembles the iPhone in China but would it be better or worse than happened to make the United States?
First you have to solve a question: Do we talk about the assembly of the iPhone in the United States rather than in China, or should also be made different components that form the MIT analysis considers both options, which we leave the results below.
Would it be profitable to manufacture the iPhone in the US?
The analysis conducted by the Massachusetts Institute of Technology indicates that the additional cost of performing assembly work iPhone in the US would be about 30 or 40 dollars. This is partly due to labor costs are higher in the US in China, but mostly it is due to additional costs of transport and logistics that would arise from dispatch of different parts for assembly.
So if the iPhone 6s had been manufactured in the United States with pieces from other countries the final price could have been a 5% increase. Furthermore is the second option to manufacture and assemble the components the device in the United States.
Currently Apple has neither more nor less than 766 parts suppliers that make the iPhone, iPad and Mac, 69 of them from the United States. Almost half of those suppliers are in China and the rest in Japan and Taiwan.
The iPhone has about 75 components and many of the materials that are produced not in the United States, such as bauxite. However, China is the main supplier of this material with 85% of production of the entire world supply.
Obviously the production of components could be carried out in the US but we would be in the same situation. There would be additional costs of transport and logistics to bring the materials that would make the price up to about $ 100 more if both components and the iPhone were manufactured in the United States.
Would you be willing to pay more for an iPhone manufactured in the United States?