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11. How much extra would a US-made iPhone cost? MIT has done the sums

How much extra would a US-made iPhone cost? MIT has done the sums …
Ben Lovejoy
9 to 5 Mac

Assembly, says the MIT Technology Review piece, is not a major part component of the cost of an iPhone. Apple doesn’t disclose the numbers, of course, but industry estimates place it in the $4-10 range.

Syracuse University professor Jason Dedrick has already estimated the additional cost of carrying out the assembly work in the USA, and says that it would add $30-40 to the cost of an iPhone – but not for the reason you might think.

That’s partly because labor costs are higher in the U.S., but mostly it’s because additional transportation and logistics expenses would arise from shipping parts, and not just the finished product, to the U.S. This means that assuming all other costs stayed the same, the final price of an iPhone 6s Plus might rise by about 5 percent.

So the bottom-line appears to be that assembly could be done in the U.S. if consumers were willing to pay an additional $30-40, rising to around an additional $100 if as many components as practical were manufactured here – but the impact on the job market isn’t likely to be significant.