Apple Inc.?s biggest device assembler Foxconn Technology Group stated that they?re in preliminary discussions about making an investment that would certainly expand Apple?s US operations. The matter came into the picture when President-Elect Donald Trump and Masayoshi Son of SoftBank Group Corp. announced that they are to invest $50 billion in the US to make 50,000 jobs. Furthermore, the money is coming from SoftBank?s technology fund which costs $100 billion that was announced back in October.
Apple Inc. to US
Apparently, Son was holding a document after the meeting in Trump Tower. According to reports, the document contains words such as ?7 billion?, ?50,000 new jobs, and ?Foxconn? along with SoftBank?s numbers.
For those who are unaware, Foxconn Technology Group is a Taiwan-based manufacturer that is responsible for primarily assembling Apple products outside the U.S. With that in mind, the said products consists of iPhones, iPads, as well as other Apple hardware.
Apple Products to be Made in the USA
President-Elect Trump has publicly ordered Apple Inc. to move their production back to the US. This directive is for?the sole intention of creating jobs. At the present time, most of Foxconn?s assembly force resides in China. According to Fubon Securities? analyst Arthur Liao, Trump is pressuring Apple Inc. to return to the U.S
According to the Mega International Investment Services Corp.?s analyst named Bill Tsai, moving manufacturing is hard and complicated. In addition, IHS Inc.?s research firm stated that Apple?s entry-level iPhone 7 device that costs $649 only requires $224.80 worth of components to make. According to Syracuse University?s professor Jason Dedrick, assembling the required parts into a finalized and working product costs $10 in China at the present time.
In that case, doing that whole work in the U.S would require an additional $30 to $40 more, Dedrick added. While there?s no doubt that there will be more jobs in the U.S, the wage would likely be low. In addition, an analyst from BGC Partners stated that they probably wouldn?t have the capacity to build every Apple product in the US.
Stay tuned to The Bitbag for updates on your favorite Apple products.