NEW YORK, NY – NOVEMBER 29: An iPhone streams a ‘Facebook Live’ live feed of the lobby at Trump Tower, November 29, 2016 in New York City. President-elect Donald Trump and his transition team are in the process of filling cabinet and other high level positions for the new administration. (Photo by Drew Angerer/Getty Images)
There have been a number of confusing and contradictory reports today speculating on the future of Apple’s supply chain. Following the election of Donald Trump as the new President of the US, many companies are beginning to review their international exposure to overseas manufacturing.
Apple is just the latest that is looking to create more manufacturing jobs back in the US, according to qq.com a China-based news site.
Recently, Lens Technology, a glass supplier for iPhones, said that it would not be relocating its production facilities from China to the US. The company cited the high wage levels as the chief obstacle.
The report also claims that much of the manufacturing technologies for the suppliers servicing the Apple supply chain (covering panels, lens modules, touch panels and other unique hardware) are difficult to relocate. For instance, re-investing in new supply chains within the States, may increase the lead-time for molding metal to a month, compared to a 10-turnaround currently offered by Chinese manufacturers.
This study is perhaps a response to a press report that emerged last month, in which Apple apparently requested its major suppliers (Foxconn and Pegatron) to explore the possibility of relocating their manufacturing footprint to the US. Apparently, Pegatron refused outright, citing high cost-factors, and Foxconn is pledged to investigate.
This may be self-serving reporting, however, produced by a Chinese industry that is rattled by the President-Elect’s protectionism. Other Apple watchers believe that plants opened within the US would merely augment is global footprint as China would still continue producing the bulk of production.
Whether China will be the ultimate location for the Apple supply chain is another variable itself. Wistron, a technology manufacturer, announced plans today to build a new assembly facility for iPhones in Bangalore, India. The new plant is scheduled to open in April 2017.
