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MIT does the Sums if iPhones Were to be Made in U.S.

We all know that two Presidential candidates had openly states that the feel that more Apple products should be made in USA. A little research has been done by the Massachusetts Institute of Technology so that a study could be done to understand how the manufacturing of the iPhones in the US would be practical for the company. The question is not as simple as it would seem.

MIT does the Sums if iPhones Were to be Made in U.S.

The first thing that needs to be defined is the terms. Does this only mean that the iPhone assembling has to be done in the US instead of China or on the other hand does it also mean that the components will also be sourced in the U.S.? Both the scenarios were considered by the MIT.

IF you talk about just assembling it in the US, as per the review by MIT technology, Assembly is not the factor when it comes the costing of the iPhone. Even though the numbers have not been disclosed by Apple, however the estimate that could be assumed would be in the range of $4‐10.Jason Dedrick a professor with Syracuse University also estimated the cost it would take to carry out for the complete assembly process in America would be around $30‐40 of the iPhone. Well no doubt, this would also help to go ahead and get more job openings in the US.

Now going to the second scenario, if the components of the iPhones were made in America, then this is what can be expected. Presently across the Mac, iPad and iPhone, there are 766 suppliers. From this total number, there are 69 suppliers which are located in America. From China, almost half the numbers are listed while the remaining count is shared between Taiwan and Japan. In regards to the chips, there is bad and good news, the shift is said to be practical, which is the good news. However this may not help in generating too many jobs. Another thing would be that there would be limitations when it comes the manufacturing the components or else new machines would have to be in place to cater to the demand. This can also result in the rise the cost of the iPhone.

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