Why Foxconn expanding production within the USA is good for everyone

It has been revealed that Foxconn are in early stage talks about expanding production from their tiny presence in the USA to a much larger occupancy.

It may be hard to admit but expanding their presence and continuing production within the USA is good for both Apple and the people of the USA.  In fact even if new locations operated by Foxconn do not produce Apple products but those of other companies it is a good thing for everyone.

It will bring much needed, estimated at a potential 50,000, jobs to the economy and locating the manufacturing facilities in locations with high unemployment is advantageous.

I suggested how Apple would bring production of their devices to the USA almost three weeks ago in a blog post and improve their reputation.  It would allow them to have more profit within the USA and this is no different from that.

Sure we may see an increase in prices with the higher employee wage costs but in real terms over the cost of many products very little cost per product and a marginal rise at most and it has been proven that even with a huge price increase people will still purchase Apple products with MacBook Pro sales still high and we have seen that overseas where prices have had to increase because of exchange rate changes that this has not retarded the sales of iPhones and iPads etc either and a small price increase will have negligible effect on unit sales.

In fact having products manufacturered within the USA for Apple may have the “Made In America” effect making the mobile devices more desirable so if they, as I suggested in my post, that they eventually focus just manufacturing for the America’s with some overspill for the rest of the world while the bulk of manufacturing remained in China it would still add to a net increase in sales from those that would prefer their product to not only be designed in the USA but assembled there too.

 

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