Pegatron Ready to Build iPhones in the U.S. If Apple 'Is Willing to Absorb the Costs'

by

After months of reports surrounding iPhone manufacturers like Pegatron and Foxconn potentially moving Apple device construction to the United States, Pegatron CEO Syh-Jang Liao this week commented that the company could build iPhones and iPads in the U.S. on the condition that its client, Apple, is ready to pay for the costs of moving manufacturing stateside (via Focus Taiwan).

Liao was responding directly to questions asked about President Donald Trump's request for American brands to keep their manufacturing in the U.S. In the wake of Trump's presidential win, months of reports have covered speculation about whether or not Apple suppliers could, or should, move production into the U.S. For Pegatron, if such a Trump initiative came into being, the company CEO said that it "already has its production lines in place."

iphone display

"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."

Just last week, Foxconn chairman Terry Gou raised concerns over the manufacturer's shift of iPhone production to the U.S. In his comments, he cited concern over whether or not the U.S. government could keep up with the regulations and laws needed to be passed before Foxconn would be able to build major iPhone plants in the country. Echoing Apple CEO Tim Cook, Gou also mentioned that the U.S. lacks the skilled labor needed for these plants to thrive.

In recent Apple-related Pegatron rumors, the manufacturer was suggested as to be the exclusive supplier of the 2017 iPhone 8's wireless charger. Along with an edge-to-edge OLED display, wireless charging is rumored to be one of the major selling points of the iPhone 8, in comparison to the more basic "iPhone 7s" and "iPhone 7s Plus." Pegatron will also help produce this year's upcoming iPhone, alongside Foxconn and reportedly Wistron.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

Kaibelf Avatar
48 months ago

it's tough to compete with factory work when other nations will pay 7 cents a day for their work force.

iPhone manufacturing at Foxconn pays something more like $2.50 per hour, or about 285x what you claim. Let's not look for the absolutely lowest pay that exists on the planet and apply it to every job in every industry. Also, let's not claim that these jobs, with the exchange rate and rental rates that aren't anything like San Jose, CA are "slave wages." It would be wonderful if every place in the world had comfortable, big homes for everyone with two-car garages, but that's not the case. Still, that's no excuse to overtly lie to make a point.
Score: 12 Votes (Like | Disagree)
djcerla Avatar
48 months ago
Translation: "if the US taxpayers will absorb the costs via Trump incentives".
Score: 9 Votes (Like | Disagree)
FactVsOpinion Avatar
48 months ago
As it becomes more and more automated, the cost of labor will be less and less prohibitive. A factory full of robots is eventually just as viable in the US as it is in China.
Score: 9 Votes (Like | Disagree)
GrumpyMom Avatar
48 months ago

Except these factory jobs are likely to require skilled technicians and engineers to run a highly complex automated factory, not workers on a production line of assembling phones. The shop floor workers will most likely do some minor assembly but it won't be a return to the old days where lots of workers churned out product. Besides cost production volume requirements will drive automation to avoid issues like plagued the Mac Pro where the production line couldn't meet demand.

US manufacturing's future is high tech automated production operated by skilled staff with minimal human work on the line; except for possibly high end expensive or custom items where production costs are much less of the final price. As much as many people believe factory jobs like in the 50's and 60's will come back it isn't going to happen; especially since consumers don't want to pay the premium.

50's and 60's? We had manufacturing jobs here aplenty as late as the 90's. We are still hemorrhaging manufacturing jobs. There are articles describing in painful detail recent accounts of workers being asked to train the foreign replacements who will be taking their jobs when factories are relocated to other countries.

Meanwhile, I've been reading article after article on my Apple Newsfeed about my generation and younger dying off due to drug use. There was an article yesterday about how police are having to become social workers in a sense, to deal with the explosive drug problem in many areas of the country. I don't think that the loss of jobs and the growing drug problem are unrelated, given that the problems seem worse in former industrial towns.

I'm the daughter of an Asian immigrant, but that immigrant (now a citizen) raised me to "be American and buy American" when feasible. I've kept to cars manufactured right here in the US. And while I have done my fair share of complaining about the rising costs of iPhones, I would feel happy to buy one at a premium that was made in my country. Providing that the quality is up to standard and the NSA doesn't load it up with spyware ala Cisco ;) : https://www.techdirt.com/articles/20140518/17433327281/cisco-goes-straight-to-president-to-complain-about-nsa-intercepting-its-hardware.shtml
o_O

I can't ever say I'm always thrilled with our government, especially the part of it that is not elected and beyond any checks and balances on its power and reach. But I do care about my fellow citizens and our problems. I care about other parts of the world, too, but it's easier to start with the problems in your own backyard. And it's possible to sometimes address both.

I'm older and at a place in life where I can do this. I might not always be. And it certainly would have been a financial hardship when I was in my thirties and younger. So I am understanding that this is not an appealing idea to a lot of people or to Apple. I'm just speaking for myself here, of what I'd like to see and be able to do. An ideal. But I know we don't live in a world where ideals can always be realized. It is what it is.
Score: 8 Votes (Like | Disagree)
s2mikey Avatar
48 months ago

So, no iPhone manufacturing in the US.

Sorry American workers: you priced yourself out of this industry.

Yeah OR corporate greed and miserable, whiny shareholders who are never happy "priced" it out of the industry. Why do companies have to be such cheap bastards? C'mon, pay people well and much of it comes back via extra spending. Apple tends to be a bleeding heart company when it comes to social issues so Im shocked they arent more keen on "sharing" profits via higher wages. Guess their "bleeding heart" agenda only applies to transgender bathroom & sexuality issues. Great.
Score: 7 Votes (Like | Disagree)
dominiongamma Avatar
48 months ago
If it raises the price of the iPhone no thanks!
Score: 6 Votes (Like | Disagree)

Top Stories

0 Deals Hero

Black Friday 2020: Best Apple Deals to Plan For

Saturday November 21, 2020 10:00 am PST by
In the lead-up to Black Friday next week, we've been putting a spotlight on the best deals coming from various retailers like Best Buy and Walmart. In an effort to further prepare our readers for the best Black Friday deals, we're breaking down what we think should be on your radar for Black Friday in 2020. Note: MacRumors is an affiliate partner with some of these vendors. When you click a...
m1 mac mini vignette

Apple Lists M1-Based Mac Mini Logic Boards With 10 Gigabit Ethernet in Internal Parts Ordering System

Friday November 20, 2020 9:32 am PST by
While the new Mac mini with the M1 chip is only available with Gigabit Ethernet, Apple has listed multiple M1-based Mac mini logic boards with 10 Gigabit Ethernet in an internal parts list for Apple Authorized Service Providers. For every Mac mini logic board with Gigabit Ethernet in the parts list, obtained by MacRumors, there is a corresponding logic board with 10 Gigabit Ethernet:...
new m1 chip

Craig Federighi: Native Windows on M1 Macs is 'Really up to Microsoft'

Friday November 20, 2020 11:57 am PST by
Following the release of the M1 Macs Apple executives have been doing interviews with a range of publications, and today, Ars Technica published another interview with software engineering chief Craig Federighi, hardware technologies lead Johny Srouji, and marketing VP Greg Joswiak. Much of the interview focuses on topics that the three have already covered in prior discussions, but there is ...
14

Apple Releases iOS 14.2.1 With Fix for Text Message Bug and iPhone 12 Mini Lock Screen Issues

Thursday November 19, 2020 10:16 am PST by
Apple today released iOS 14.2.1, a bug fix update that comes two weeks after the launch of iOS 14.2 and is available for Apple's new iPhone 12 models. The iOS 14.2.1 update can be downloaded for free and it is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General > Software Update. According to Apple's release notes, iOS...
Walmart November Deals Hero

Black Friday Spotlight: Walmart Will Have AirPods Pro Down to Lowest Price of $169, and More Apple Deals

Thursday November 19, 2020 8:05 am PST by
We've been tracking early Black Friday deals in our dedicated Black Friday Roundup, and in an effort to prepare our readers for the big shopping event we're highlighting sales store-by-store in the lead-up to November 27. Note: MacRumors is an affiliate partner with Walmart. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Next ...
apple leather sleeve

Leather Sleeve for iPhone 12 Models Now Available From Apple

Friday November 20, 2020 12:16 pm PST by
Apple today began selling the Leather Sleeve for the new iPhone 12 models, with the accessory having first been announced alongside the updated iPhones in October. Priced at $129, the Leather Sleeve is not a case and is designed to be removed when the iPhone is in use. It features a cutout at the front that displays the time, and it comes with a matching leather strap. According to Apple, it ...
iOS14AntitrackFacebookSadfeature

Apple Confirms Commitment to App Tracking Transparency in Letter Condemning Facebook's Data Collection [Updated]

Thursday November 19, 2020 11:58 am PST by
Apple in iOS 14 is planning to introduce a new App Tracking Transparency feature that will let users know when companies want to track them across apps and website. Following outcry from developers like Facebook and ad networks unprepared for the change, Apple delayed the implementation of the anti-tracking functionality until early 2021. Eight civil society organizations recently sent a...
maxresdefault

CrossOver Allows x86 Windows Apps to Run on Apple M1 Macs

Wednesday November 18, 2020 6:07 pm PST by
Codeweavers posted a blog post and video tonight showing off CrossOver running on an Apple M1 MacBook Air. This video shows Team Fortress 2 running on a new M1 MacBook Air: CrossOver is software (based on Wine Project) that runs Microsoft Windows apps on the Mac by translating Windows APIs into their Mac equivalents. The Codeweavers team was able to run the current version of CrossOver on...
macbookpro13large

Apple Offers Instructions on What to Do if macOS Big Sur Causes Installation Errors on 2013 and 2014 MacBook Pro

Thursday November 19, 2020 6:12 pm PST by
Following the release of macOS Big Sur last week, a number of 2013 and 2014 MacBook Pro owners found that the update bricked their machines. Affected users saw their Macs get stuck displaying a black screen after attempting to install the new software. Apple has now addressed this issue in a new support document that provides instructions on what to do if macOS Big Sur can't be installed on...
128gb m1 macbook air education cropped

$799 M1 MacBook Air With 128GB Storage for Education Institutions Spotted Online

Friday November 20, 2020 5:15 am PST by
A new configuration of the M1 MacBook Air with 128GB of storage and a lower $799 price has today been spotted on Apple's U.S. Education Institution Hardware and Software Price List. The M1 MacBook Air is only available with 256GB, 512GB, 1TB, or 2TB of storage. There is currently no 128GB configuration on the Apple Store. However, Reddit user "u/dduci97" noticed that Apple has listed...