Why the iPhone Isn't "Made in the USA"... These Screws Are the Reason
Although a "Made in the USA" iPhone may seem like the American ideal, the truth is more nuanced than that. Apple's multi-million dollar investment and Donald Trump's threat of 25% tariffs have failed to guarantee that this iconic smartphone is manufactured entirely in the US.
In short, the Trump administration has forced Apple to choose between paying a 25% tariff on all imported phones or guaranteeing that iPhones are made in the US.
Although many questions have been asked about why this is the case and how a phone with American roots could not be produced domestically, the answer is actually quite simple.
These screws are preventing Trump and the iPhone from realizing the American dream.
A new and unexpected challenge for Apple, which has been diversifying its production outside of China for years to avoid exactly these kinds of issues, is the inability to automate basic yet important tasks like the mass assembly of small parts.
Although it sounds like an excuse, it isn't. Current robotic technology cannot precisely and swiftly control the tiny screws that make up an iPhone on US production lines, according to US Commerce Secretary Howard Lutnick and Apple CEO Tim Cook.
Due to financial constraints and a shortage of skilled labor, this task cannot be replicated in the United States, where millions of skilled workers carry it out by hand. However, exercise caution, as the issue extends beyond screws. With hundreds of suppliers dispersed throughout Asia, the iPhone supply chain is among the most intricate in the world.
Although Apple designs its chips in California and constructs a semiconductor factory in Arizona, nearly everything is made outside of the US, including screens, cameras, batteries, and sensors.
The outcome: According to analysts contacted by Reuters, assembling the iPhone in the US would result in a final price of $3,500 as opposed to the current $1,200.
Wedbush Securities' Dan Ives calls the project "a fantasy" because of the financial and logistical challenges. Apple would also need to redesign its global logistics and renegotiate contracts with over 200 suppliers, which could take five to ten years.
Even though Apple is doubling its production capacity and assembling models like the iPhone 15 in India, there are still obstacles to overcome, including a lack of experience, logistical problems, and infrastructure that is still inferior to China's. Additionally, even though the US has levied tariffs on Indian goods, this action is paused while an agreement is negotiated.
The iPhone's "Made in the USA" claim directly contradicts reality: globalization and technology have made it possible for even the smallest screw to hold back one of the world's superpowers.