Foxconn to start making phones in the USA

BY Stefan Constantinescu

Published 25 Nov 2013

Most phone makers don’t build the phones they sell. They hire someone like Foxconn to do it for them. Now this isn’t exactly a bad thing. Say what you will about Apple and the iOS, but no one has ever picked up an iPhone and said to themselves it’s built poorly. Thank Foxconn for that.

Speaking about Foxconn, today they have factories in China and several other parts of the world, and soon you’ll be able to add the United States to that list. Why build a factory in the USA? Three things. One, Chinese labor prices have started to go up. Two, more manufacturing processes are becoming automated thanks to the use of robotics. And three, it’s good PR. What American wouldn’t want to buy a phone that’s made in the USA?

So when will this elusive factory open its doors, how much is it going to cost to build it, and where will it be? Foxconn’s Chairman and President Terry Gou has confirmed he spoke with the Arizona governor Janice Brewe, but more importantly, he’s confirmed Foxconn is going to sink $30 million into a Pennsylvania plant that should start pumping out “telecommunications devices” in two years.

Will American phones cost more than Chinese phones? Probably, but does it matter? Most Americans buy their phones on contract. They think the $700 Galaxy Note 3 costs less than half that. If a high-end phone ends up costing $20 more because it’s made in the USA, consumers will never find out thanks to the subsidies they’re fed year after year.