Cost in the U.S. vs China is
a factor, but it is not the only issue. The U.S. does not have the capacity to manufacture some components in volume.
This NYT article from 2019 concerning Apple's inability to find a U.S. supplier of screws is an example.
>>>Despite a trade war between the United States and China and past admonishments from President Trump “to start building their damn computers and things in this country,” Apple is unlikely to bring its manufacturing closer to home.
A tiny screw illustrates why.
In 2012, Apple’s chief executive, Timothy D. Cook, went on prime-time television to announce that Apple would make a Mac computer in the United States. . . . But when Apple began making the $3,000 computer in Austin, Tex., it struggled to find enough screws . . . In China, Apple relied on factories that can produce vast quantities of custom screws on short notice. In Texas, where they say everything is bigger, it turned out the screw suppliers were not.
Tests of new versions of the computer were hamstrung because a 20-employee machine shop that Apple’s manufacturing contractor was relying on could produce at most 1,000 screws a day. The screw shortage was one of several problems that postponed sales of the computer for months, the people who worked on the project said. By the time the computer was ready for mass production, Apple had ordered screws from China. . . .
“The skill here is just incredible,” Mr. Cook said at a conference in China in late 2017. Making Apple products requires state-of-the-art machines and lots of people who know how to run them, he said.
“In the U.S., you could have a meeting of tooling engineers and I’m not sure we could fill the room,” he said. “In China, you could fill multiple football fields.” . . .
Mr. Cook has also disputed that cheap labor is the reason Apple is still in China. But it doesn’t hurt. The minimum wage in Zhengzhou, China, home of the world’s biggest iPhone factory
, is roughly $2.10 an hour, including benefits. Apple said the starting pay for workers assembling its products there was about $3.15 an hour. Compensation for similar jobs in the United States is significantly higher. <<<
Apple decided several years ago to produce a high-end Mac in Texas. The problems that surfaced illustrate the challenges of domestic manufacturing.
According to the following article, China is no longer a low-cost country:
View attachment 60828
With worldwide shortages and supply chain disruptions, companies have changed how they source and manufacture parts and finished products. The Reshoring Institute studied and compared global labor rates around the world—and what follows are the high-level results of a study comparing labor rates...
That doesn't mean, however, that China is a high-cost country.
Having said that, the cost of money is basically the same everywhere. The cost to run an automated machine is about the same everywhere (absent government subsidies, of course).