“Pegatron Corp., one of the two Taiwanese companies that assemble iPhones and iPads for Apple Inc., said Tuesday that it would be willing to move that part of its operations to the United States once its client would absorb the additional costs,” Pan Chih-yi and Elizabeth Hsu report for Focus Taiwan.
“Pegatron CEO Liao Syh-jang was responding to questions raised at an investor conference about the company’s plans for its assembly plants in light of the comments by U.S. President Donald Trump that American brands should keep their production on home soil,” Chih-yi and Hsu report.
As long as there is demand, whether the clients are American or Chinese, Pegatron already has its production lines in place. If Trump institutes his Made in America proposal, it will be fine for Pegatron as long the client is willing to absorb the costs. — Pegatron CEO Liao Syh-jang
Read more in the full article here.
MacDailyNews Take: Last November, Dow Jones Newswires reported:
If Apple finds enough workers to assemble in the U.S., the cost of making an Apple iPhone 7 could increase $30 to $40, estimates Jason Dedrick, a professor at the School of Information Studies at Syracuse University. Since labor accounts for only a small part of an electronic device’s overall costs, most of these higher expenses would come from shipping parts to the U.S.
If the iPhone components were also made in the U.S., the device’s costs could climb up to $90, according to Mr. Dedrick’s research with UC Berkeley’s Greg Linden and UC Irvine’s Ken Kraemer. That means that, if Apple chose to pass along all these costs to consumers, the device’s retail price could climb about 14%.
Any additional costs to assemble in the U.S. would be spread out over the entire 100% of worldwide iPhone sales, as they are with the assembly of iPhones and iPads in other countries today.
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