The presidential candidate of the U.S, Donald Trump wants Apple to produce iPhone and their other products in the U.S, not China. It brings an interesting question: how much the price iPhone will be if it’s made in U.S?
At this moment, Apple chooses China to produce iPhones through their manufacture partner, Foxconn, due to the more affordable production cost, where the Foxconn employee is only paid US$400 per month. If Apple decides to produce their devices in the U.S, they have to spend more. It is because of the minimum salary in U.S is high. For instance, in Wyoming and Georgia, the minimum salary is US$5,15 per hour, which is the lowest salary compared to the other states. If we calculate with the average working hour, the employee will get US$824 per month. Moreover, if Apple hires someone in California, thus they have to pay the minimum salary US$9 per hour or US$1,400 per month.
Without calculating the other factors, such as the price of components, the shipping cost, marketing cost, also research and development, the price of iPhone if it’s made in U.S would be US$1,300. This price is 2x higher than their latest iPhone that they sell starting from US$650. It is too expensive and not competitive. Furthermore, Trump proposed a 35 percent tax on products built outside of the US. So at a minimum, that would mean your next iPhone could come with the price starting at US$877,50!
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