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iPhone manufacturing to be considered in America by FoxConn

Could iPhone’s soon be made in the United States?

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By Andrew Zirkle | USA

 

Although American manufacturing is not characterized by the assembly of high-end tech products, it appears as though Foxconn has quietly decided to begin manufacturing plans in America. As revealed by a memo taken by FoxConn executives, the major Taiwanese company is considering a project to create 10,000 jobs in Southeast Wisconsin. FoxConn, the primary manufacturer of iPhones as well as Sharp brand TV’s has a history of keeping their plans well hidden, which means details regarding the cost of the project as well as the work to be done at the plant likely won’t be released until a later date. Despite Foxconn’s relative tendency to assemble products in China, this isn’t their first foray into multinational manufacturing. In 2011, FoxConn promised a 12 Billion dollar investment into Brazilian manufacturing would create both 100,000 jobs and a cheaper iPhone for the country. Despite these promises, in 5 years Brazil had a fraction of the manufacturing jobs that FoxConn had promised as well as an iPhone that was nearly double the cost of its American counterpart. With the news of this failed investment coming to light, FoxConn quietly pulled funding for their Brazil venture, and its slow death is reaching its later stages today. Although wages may have been a partial influence in the high cost of the Phone’s produced in Brazil, most industry analysts believe that a stretched out supply chain was to blame. FoxConn still had its raw materials and preliminary manufacturing occurring near the source in Shenzhen China. By the time a partially finished iPhone came to Sao Paulo for assembly, the cost had risen severely due to the fractured nature of the supply chain. Because of the failure in Brazil, it is to be expected that FoxConn has learned their lesson and hopefully will change the way they operate so as not to disrupt the American market, which is one of the most important consumers of Apple products. Although the Wisconsin plant is far from certain, business experts had previously raised calls of concern when an MIT study determined that the iPhone would likely cost at least $40 more per unit to make in America due to supply chain fracture and wage discrepancies. All in all, FoxConn is taking a huge risk by moving manufacturing to America and Apple stands to lose millions of dollars, however, if this investment is planned carefully, the upside could be very beneficial to both FoxConn and Apple.

FoxConn, the primary manufacturer of iPhones as well as Sharp brand TV’s has a history of keeping their plans well hidden, which means details regarding the cost of the project as well as the work to be done at the plant likely won’t be released until a later date. Despite Foxconn’s relative tendency to assemble products in China, this isn’t their first foray into multinational manufacturing. In 2011, FoxConn promised a 12 Billion dollar investment into Brazilian manufacturing would create both 100,000 jobs and a cheaper iPhone for the country. Despite these promises, in 5 years Brazil had a fraction of the manufacturing jobs that FoxConn had promised as well as an iPhone that was nearly double the cost of its American counterpart. With the news of this failed investment coming to light, FoxConn quietly pulled funding for their Brazil venture, and its slow death is reaching its later stages today. Although wages may have been a partial influence in the high cost of the Phone’s produced in Brazil, most industry analysts believe that a stretched out supply chain was to blame. FoxConn still had its raw materials and preliminary manufacturing occurring near the source in Shenzhen China. By the time a partially finished iPhone came to Sao Paulo for assembly, cost had risen severely due to the fractured nature of the supply chain. Because of the failure in Brazil, it is to be expected that FoxConn has learned their lesson and hopefully will change the way they operate so as not to disrupt the American market, which is one of the most important consumers of Apple products. Although the Wisconsin plant is far from certain, business experts had previously raised calls of concern when an MIT study determined that the iPhone would likely cost at least $40 more per unit to make in America due to supply chain fracture and wage discrepancies. All in all, FoxConn is taking a huge risk by moving manufacturing to America and Apple stands to lose millions of dollars, however, if this investment is planned carefully, the upside could be very beneficial to both FoxConn and Apple.

FoxConn still had its raw materials and preliminary manufacturing occurring near the source in Shenzhen China. By the time a partially finished iPhone came to Sao Paulo for assembly, cost had risen severely due to the fractured nature of the supply chain. Because of the failure in Brazil, it is to be expected that FoxConn has learned their lesson and hopefully will change the way they operate so as not to disrupt the American market, which is one of the most important consumers of Apple products. Although the Wisconsin plant is far from certain, business experts had previously raised calls of concern when an MIT study determined that the iPhone would likely cost at least $40 more per unit to make in America due to supply chain fracture and wage discrepancies. All in all, FoxConn is taking a huge risk by moving manufacturing to America and Apple stands to lose millions of dollars, however, if this investment is planned carefully, the upside could be very beneficial to both FoxConn and Apple.

FoxConn, the primary manufacturer of iPhones as well as Sharp brand TV’s has a history of keeping their plans well hidden, which means details regarding the cost of the project as well as the work to be done at the plant likely won’t be released until a later date. Despite Foxconn’s relative tendency to assemble products in China, this isn’t their first foray into multinational manufacturing. In 2011, FoxConn promised a 12 Billion dollar investment into Brazilian manufacturing would create both 100,000 jobs and a cheaper iPhone for the country. Despite these promises, in 5 years Brazil had a fraction of the manufacturing jobs that FoxConn had promised as well as an iPhone that was nearly double the cost of its American counterpart. With the news of this failed investment coming to light, FoxConn quietly pulled funding for their Brazil venture, and its slow death is reaching its later stages today. Although wages may have been a partial influence in the high cost of the Phone’s produced in Brazil, most industry analysts believe that a stretched out supply chain was to blame. FoxConn still had its raw materials and preliminary manufacturing occurring near the source in Shenzhen China. By the time a partially finished iPhone came to Sao Paulo for assembly, cost had risen severely due to the fractured nature of the supply chain. Because of the failure in Brazil, it is to be expected that FoxConn has learned their lesson and hopefully will change the way they operate so as not to disrupt the American market, which is one of the most important consumers of Apple products. Although the Wisconsin plant is far from certain, business experts had previously raised calls of concern when an MIT study determined that the iPhone would likely cost at least $40 more per unit to make in America due to supply chain fracture and wage discrepancies. All in all, FoxConn is taking a huge risk by moving manufacturing to America and Apple stands to lose millions of dollars, however, if this investment is planned carefully, the upside could be very beneficial to both FoxConn and Apple.

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