Credit: Foxconn global facilities. Image source: Foxconn.It's probably smart for Foxconn to remain vague at this point, declining to elaborate on any potential expansion in concrete terms. It can score political points by expanding, but theoretically keeping any expansion modest would put a lid on costs as labor costs in the U.S. are still meaningfully higher than in China.
Still a skeptic
It's also a distinct possibility that a Foxconn expansion in the U.S. would focus on areas outside of consumer electronics, but it's unclear exactly what Foxconn has on its mind. But it's hard to imagine Apple sitting out of these discussions altogether, since it has already expressed interest in at least evaluating the possibility. Plus, any cost increases borne by Foxconn would naturally be passed along at least in part to the iPhone maker, and then subsequently to consumers, if Foxconn wants to expand smartphone and tablet assembly.
Despite this new report, I'm still skeptical about Apple's ability to move any non-trivial number of jobs back to the U.S., particularly around the iPhone. The supply chain is simply far too embedded in Asia to produce the device anywhere else in the volumes that Apple needs.
10 stocks we like better than Apple
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of Nov. 7, 2016
Evan Niu, CFA owns shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
