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Apple component suppliers in China resist production move to United States

Though Donald Trump has suggested he’d offer tax breaks to Apple to bring production of its devices to the United States, Chinese suppliers are reluctant to such supply chain changes.

Despite major Apple vendor Foxconn suggesting it would consider it back in November, reports have surfaced that say Lens Technology, which supplies the iPhone’s glass cover, will not set up production in the US.

As reported on Chinese site

“Lens Technology, a China-based supplier of cover glass used in iPhones, indicated that it will not set up production lines in the US due to labor supply, although power and land costs in the US are lower than in China. Lens Technology has 70,000 workers of whom all are below 45 in age, while most labor in the US is of over 45 years old, the company said. In addition to high wage rates, workers in the US are reluctant to accept varying working schedules, Lens Technology added.”

Back to Foxconn, its CEO has since elaborated that while it’s possible for the company to move production, the increased production and labour costs would inevitably passed onto the consumer.