Education Alert! Education Alert! Education Alert!
There's a lot of confusion and misunderstanding about how iPhones are made. Foxconn is primarily an ASSEMBLER of other companies parts from around the world. The other primary ASSEMBLER is Pegatron. Assembly line jobs in China are easily replaced, and are being replaced by Foxconn with robots. Some estimates are that the labor cost in US might only add $30 to the price of a phone, and might be offset by reduced shipping or other costs.
The bigger challenge,
as Steve Jobs pointed out, is not lower skilled labor, but with having enough of the tens of thousands of engineers necessary to run the plants and be able to be nimble to quickly retool, change production, etc. It would be great to bring this manufacturing home because it would create good paying jobs, but we will have to have a renaissance in vocational education to prepare these engineers, and no they don't all need four year degrees to be factory engineers.
Foxconn has already moved some production out of China to lower wage countries like Vietnam, but they know they need to automate as they can't stay ahead of the labor costs. That's why it's conceivable to locate factories in US, if we can get the necessary number of engineers.
There's also a myth that the suppliers are all located in China. Here's just one chart to show how the various parts of the iPhone are already made all around the world and have to be shipped to China and could be similarly shipped to US for the final assembly as Foxconn does in China, Brazil, Vietnam, etc.
- Accelerometer: Bosch Sensortech. Based in Germany, with locations in the U.S., China, South Korea, Japan, and Taiwan
- Audio chips: Cirrus Logic. Based in the U.S., with locations in the U.K., China, South Korea, Taiwan, Japan, and Singapore
- Battery: Samsung. Based in South Korea, with locations in 80 countries
- Battery: Sunwoda Electronic. Based in China
- Camera: Qualcomm. Based in the U.S., with locations in Australia, Brazil, China, India, Indonesia, Japan, South Korea, and more than a dozen locations through Europe and Latin America
- Camera: Sony. Based in Japan, with locations in dozens countries
- Chips for 3G/4G/LTE networking: Qualcomm.
- Compass: AKM Semiconductor. Based in Japan, with locations in the U.S., France, England, China, South Korea, and Taiwan
- Glass screen: Corning. Based in the U.S., with locations in Australia, Belgium, Brazil, China, Denmark, France, Germany, Hong Kong, India, Israel, Italy, Japan, South Korea, Malaysia, Mexico, Philippines, Poland, Russia, Singapore, South Africa, Spain, Taiwan, The Netherlands, Turkey, the U.K., and the United Arab Emirates
- Gyroscope: STMicroelectronics. Based in Switzerland, with locations 35 countries
- Flash memory: Toshiba. Based in Japan, with locations in over 50 countries
- Flash memory: Samsung.
- LCD screen: Sharp. Based in Japan, with locations in 13 countries
- LCD screen: LG. Based in South Korea, with locations in Poland and China
- A-series Processor: Samsung.
- A-series Processor: TSMC. Based in Taiwan, with locations in China, Singapore, and the U.S.
- Touch ID: TSMC
- Touch ID: Xintec. Based in Taiwan.
- Touchscreen controller: Broadcom. Based in the U.S., with locations in Israel, Greece, the U.K., the Netherlands, Belgium, France, India, China, Taiwan, Singapore, and South Korea
- Wi-Fi chip: Murata. Based in the U.S., with locations in Japan, Mexico, Brazil, Canada, China, Taiwan, South Korea, Thailand, Malaysia, Philippines, India, Vietnam, The Netherlands, Spain, the U.K., Germany, Hungary, France, Italy, and Finland
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Detroit has 300K qualified people ready and available to work on an iPhone assembly line? The entire population of Detroit is less than 700K. Are Chicago and San Francisco hotbeds for manufacturing? Do they have an abundance of low skilled workers ready to jump in an assembly line?
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Not if they're doing it because of government subsidies or bullying/shaming by the PEOTUS. Political pandering is horrible policy.
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So basically with Trump we'll go back to FDR like policies. Pretty soon we'll have Trump dam and Trump interstate and Trump city with factory workers living in their Trump homes. Scary.
See above, you've got to open your mind beyond your political bias and understand that your image of production is, and to a large extent with the iPhone has always been, outdated. Foxconn just eliminated in its most recent phase 30K assembly line workers, replacing them with robots. That work is largely, though not completely,going away in China and elsewhere. Yes, there will still be a need for a few low skilled workers, but the good paying jobs that we want are the tens of thousands of engineering jobs that are crucial to running the production plants, maintaining and developing the robotics, etc. The vast majority of Americans don't care, and don't have time for, the political battle that some want to have. They want folks that will work together to usher in a renaissance of vocational education and good paying jobs for the vast number of Americans who have dropped out of the work force or who are underemployed.