Presidential candidate, businessman, and occasional Lothario Donald Trump says he would make Apple manufacture the iPhone in the U.S. instead of China. How much would Trump’s iPhone cost? MIT Technology Review gathers the numbers:
According to IHS, a market analyst, the components of an iPhone 6s Plus, which sells for $749, cost about $230. An iPhone SE, Apple’s newest model, sells for $399, and IHS estimates it contains $156 worth of components.
Assembling those components into an iPhone costs about $4 in IHS’s estimate and about $10 in the estimation of Jason Dedrick, a professor at the School of Information Studies at Syracuse University. Dedrick thinks that doing such work in the U.S. would add $30 to $40 to the cost. That’s partly because labor costs are higher in the U.S., but mostly it’s because additional transportation and logistics expenses would arise from shipping parts, and not just the finished product, to the U.S. This means that assuming all other costs stayed the same, the final price of an iPhone 6s Plus might rise by about 5 percent.
Doesn’t sound like much, does it?
That doesn’t include component differential since about half of all the components are sourced in China.
In other words, “no tech product from mine to assembly can ever be made in one country,” says David Abraham, author of The Elements of Power, a new book about rare earth metals. The iPhone is a symbol of American ingenuity, but it’s also a testament to the inescapable realities of the global economy.
Don’t wait around for an American made iPhone.