Pegatron Would Move iPhone Production to USA If Apple Absorbs Additional Costs
LIKE
TWEET
SHARE
PIN
SHARE
POST
MAIL
MORE
Posted March 15, 2017 at 2:07pm by iClarified
Pegatron says it would move iPhone production to the USA if Apple absorbs the additional costs, reports Focus Taiwan.
At an investor conference, Pegatron CEO Liao Syh-jang responded to a questions about plans for its assembly plants in light of President Donald Trump's push to bring manufacturing jobs back to America.
"As long as there is demand, whether the clients are American or Chinese, Pegatron already has its production lines in place," Liao said. "If Trump institutes his Made in America proposal, it will be fine for Pegatron as long the client is willing to absorb the costs."
Late last year, Apple reportedly asked Foxconn and Pegatron to investigate the feasibility of making iPhones in America. Pegatron allegedly declined to formulate such a plan due to cost concerns.
In other words, it is not simply enough to institute a policy to "Make in America". Labor laws have to be tighter and wages fixed. You cannot expect a phone maker to make an iPhone for 50 dollars and sell it to Apple for 80 if the cost of making it in America is 250. Either companies like Apple has to reduce their margin or absorb the cost like what Pegatron is saying. The third option is to reduce the wage levels which I am sure Americans won't accept it.