Apple is currently trying to shift production out of China to India, with the company’s supply chain pulling off creative ideas to prevent the authorities from detaining key equipment in the region. During this time, the company did not once brainstorm on bringing manufacturing to the U.S., and not because it does not wish to, but because it would be counterproductive, not to mention that Apple would be forced to raise the prices of whatever product is mass produced locally. Now, a thorough analysis has shown how complex the situation actually is, stating that each iPhone consists of 2,700 parts and moving every one of these components to a U.S.-based supply chain will be next to impossible.
Additionally, more than 700 production facilities make those 2,700 iPhone components, making it even more difficult to shift manufacturing to the U.S.
Even if U.S. President Donald Trump is confident that the country possesses the resources to begin iPhone manufacturing, the statistics do not match his claims. According to a paywalled report from the Financial Times, with details spotted by 9to5Mac, there are a whopping 2,700 parts that are present in the latest iPhone models. It is impossible to spot all of these components with the naked eye, even while performing a teardown, because each of those parts has a separate element that forces the complete piece.
Getting a supply chain ready to set up shop to produce each iPhone will be an arduous journey. After all, it is estimated that more than 700 production sites are required to make those components, with only 30 suppliers located outside of China. As for the suppliers in China, their production facilities are close to one another, making it a seamless process when coordination is required. Furthermore, it took the country decades to set up these supply lines, meaning that it would take just as long to set up the same production facilities in the U.S.
From a political perspective, it makes little sense to proceed with local manufacturing. The report states that even if Apple was finally convinced to shift its supply chain to the U.S., the time required from start to finish would be longer than President Trump’s four-year tenure. Overall, it is an exercise in futility, and if you wish to check out the entire analysis by yourself, the source link is provided below.
News Source: Financial Times
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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