Tim Cook: Apple CANNOT Support US Labor

Moving production of Apple Inc. (NASDAQ:AAPL) products to the U.S. may be a long way off, according to reports from DigiTimes.

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Sources from Apple’s upstream supply chain said that relocating production lines to the United States would be “highly difficult.” Right now, nearly all Apple products are assembled in Asia. If the company moved production lines, the cost of transporting parts and increased wage rates would significantly increase the company’s expenses.

Additionally, component makers in China are unlikely to follow Apple back to the U.S., which would not only result in increased costs for the company, but also decreased speed in the production chain.

During AllThingsD’s D10 conference, Apple Chief Executive Tim Cook said that he would like to return to building the company’s products in the U.S. but that the ability to mirror the company’s current assembly efficiency must be present. Apple also produces a small number of devices in Brazil via its manufacturing partner Foxconn, however those products are only sold within Brazil.

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