iPhone “made in USA”: what it would make – and what not

Today 20 percent, then again 145 percent, then 20 percent again-and in between no tariffs at all: at the moment it is difficult to follow the erratic approach of the Trump administration, which according to their own statements is to enable more industrial settlements in the United States and to reduce the trade deficit in parallel. The problem: that sounds too good to be true. No company – not even the clever logisticians at Apple – can change production within a very short time. The move of 20 percent of the iPhone capacity to India took years and was associated with pain. So it takes a realistic look. Can iPhones be produced in the USA without the devices cost $ 3,000 and more? And if so, how?

Problem automation

Apple’s supply chain in China has established itself for decades. The group has no longer produced itself for a long time, but uses manufacturer like Foxconn, which in turn hold over a million employees on demand. This has not been quite as easy lately, since even in China, young people are less and less desired for this kind of jobs. Nevertheless, production runs almost smoothly every year – and up to 200 million iPhones plus Macs and a lot of accessories roll off the assembly line.

The front suppliers in the United States alone would be extremely difficult – if they are available at all. In India, the finished team mainly works with parts from China, while Apple tries to produce more and more components locally. Of course, Apple could also simply have the Chinese components installed in the USA. But that in turn should be very automated because the necessary amounts of workers are simply not available. And someone in turn would have to build up.

Skills shortage

After all, there is another problem: the shortage of skilled workers. In China there is an army of so -called Tooling Engineers Ready to build up the production chains, set up machines and ensure that the production runs smoothly. “The number of tooling engineers in the USA could probably be put into a room,” Apple CEO Tim Cook is said to have said. There are many thousands in China.

In the US government, however, you are still optimistic. “The army of millions of people (in China) will be automated,” said Commerce Secretary Howard Lutnick to US media. But would that be possible? Apple’s production changes so quickly that intervention by people is necessary. The crux is and remains the iPhone, Apple’s most important product. The analyst Dan Ives from the Wedbus investment house even believes that Iphones that would be produced in West Virginia or New Jerseywould cost up to $ 3500. He thinks a reshoring is impossible that this is “a fictional story”.