Apple's CEO recently discussed the potential for producing iPhones in the U.S. with the aid of robotic arms. However, analysts suggest that whether through automation or traditional labor, establishing U.S. production will be a lengthy process. Historically, attempts like Motorola's smartphone factory in Texas closed within a year due to high costs and poor sales.
The idea of iPhone production in the U.S. faces significant hurdles, especially the disruption of a complex global supply chain built over decades. The iPhone, composed of about 2,700 parts, reflects Apple's intricate supply web involving ten Asian countries, which cannot be easily replaced. Although there's an intention to scale down Chinese manufacturing, India stands to benefit as an alternative supply base.
Experts predict that relocating iPhone assembly back to the U.S. is impractical during the current administration. The skilled labor and extensive infrastructure in China present formidable challenges to such a shift. According to TechInsights, less than 5% of iPhone parts are currently U.S.-made, necessitating substantial investment in automation and training if production were to move stateside.
