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Why The U.S. Fell Behind In Phone Manufacturing

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Made in China. It’s a common phrase known by many. Cell phones, TV screens and game consoles are just some of the millions of electronics manufactured and imported from China to the U.S. daily. China has controlled the smartphone manufacturing market for years. While some industries, like the semiconductor industry and the EV battery market, are scrambling to build new factories across the U.S., tech giants like Apple and Google are not making the same effort to do that. CNBC explores why tech giants produce phones abroad and whether it makes sense to move production to America. And CNBC visits one company, Purism, at its Carlsbad, California factory to take a look inside the only smartphone manufacturing facility in the U.S. to learn what it takes to build phones in America.

Produced by: Sydney Boyo
Supervising Producer: Jeniece Pettitt
Additional Camera: Andrew Evers, Katie Brigham
Editorial Support: Katie Tarasov
Graphics by: Josh Kalven

Chapters:
0:00 Introduction
1:12 Big Tech favors China
6:00 Challenges of reshoring
11:39 Is America ready?

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Why The U.S. Fell Behind In Phone Manufacturing

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45 Comments

45 Comments

  1. @tonygaffner8126

    December 18, 2023 at 7:31 pm

    Yeah due to rules and regulations. Just like everything else

  2. @JosephLee2012

    December 18, 2023 at 7:31 pm

    If you read between the lines, Tim Cook is saying that Americans are stupid and lazy.

  3. @kingchrome5551

    December 18, 2023 at 7:31 pm

    Not saying the wage still isn't low and the hours aren't high but you also have to adjust the average wage to the cost of living. At one point rent was estimated to be 60% lower in china than in America.

  4. @horridohobbies

    December 18, 2023 at 7:31 pm

    15:35 China was never a security threat. This was US paranoia and propaganda garbage.

  5. @captainaxlerod1297

    December 18, 2023 at 7:31 pm

    Americans don't want to work

  6. @healingbyqurannow

    December 18, 2023 at 7:31 pm

    Robotics can be deployed to increase efficiency and profit in the USA.

  7. @thuydoan7496

    December 18, 2023 at 7:31 pm

    It all started in 2007 when Apple decided that it was cheaper to employ Chinese people to assemble iPhones. Tim Cook set up the Chinese factories himself so Apple can benefit from cheap Chinese labor. That is why America NEVER had a chance at the beginning.

  8. @minixtvbox

    December 18, 2023 at 7:31 pm

    Reganomics

  9. @stevencorbo1220

    December 18, 2023 at 7:31 pm

    Those are as much excuses as they are anything else has Apple built the infrastructure in China. China improved that infrastructure and became the market leader although tsmc the Taiwan based company is truly the leader

  10. @stevencorbo1220

    December 18, 2023 at 7:31 pm

    Companies from the United States are what made China a threat as they didn't have the technology before we started producing our products there

  11. @stevencorbo1220

    December 18, 2023 at 7:31 pm

    You can never oversee reduction correctly because things get stolen technology gets stolen when you do overseas production I miss something these idiots at Apple have never thought about it and don't understand

  12. @daklakdigital3691

    December 18, 2023 at 7:31 pm

    Americans physical attributes (large fingers, etc) are unsuited for delicate work. Plus there are labour/employment laws.

  13. @Kings_World2.0

    December 18, 2023 at 7:31 pm

    Its labor cost … point blank period. It's cringe to see them tip toe (Lie) around the topic

  14. @johnd8281

    December 18, 2023 at 7:31 pm

    Labor cost is too high

  15. @Morrphinne

    December 18, 2023 at 7:31 pm

    The response hold on only two letter…

  16. @lokesh303101

    December 18, 2023 at 7:31 pm

    Because they got no efficient Printed Circuit Board Manufacturers and just you get you have the Displays.

  17. @uyngor1536

    December 18, 2023 at 7:31 pm

    Made in USA with supply chain in China

  18. @maxaj6116

    December 18, 2023 at 7:31 pm

    They make it better for cheaper

  19. @DD-fs7pg

    December 18, 2023 at 7:31 pm

    Purism really doesn't have a leg to stand on. They're basically only here to advertise their product hoping to appeal to a wider audience that are unaware of their issues. For those unaware, Purism has been hit hard with claims of not delivering products and not processing/ignoring refunds. These issues are for Librem orders from 4-5 years ago and customers are still being strung along by Purism's customer support. I'm sure that their "commitment" for "Made in USA" is more of a marketing ploy than anything considering their obvious financial woes. I respect the ideas behind the product and company but it's obvious that their commitments fall short.

  20. @MichaelMomany

    December 18, 2023 at 7:31 pm

    Give America 10 years and those assembly line workers will be replaced with intricate robots.

  21. @jascam1

    December 18, 2023 at 7:31 pm

    Both Biden and DeSantis are just blowing smoke up the citizens tail, they both know that the USA cannot match China when it comes to manufacturing. The average high school dropout in the USA is expecting/demanding $15-20 an hour, while Chinese workers (or their proxies in Asia) will settle for $5 or less. Furthermore the Chinese workers are more disciplined and loyal. They will take one for the team for the greater good of the whole.

  22. @lilblackfish2009

    December 18, 2023 at 7:31 pm

    when its made in US they wana charge a arm and a leg

  23. @rarinkaz

    December 18, 2023 at 7:31 pm

    The typical american's attitude is just pay me so I can get out of here! Work…?! What's that? They wear ear buds and talk on the phone their whole work shift! And pittle around as much as possible! They put more thought into how to get out of work rather than do anything productive! And they always want and expect a raise! But 90% of the company's are just as guilty!

  24. @manomano2524

    December 18, 2023 at 7:31 pm

    2000$ but still looks old and nothing new

  25. @technoideas5835

    December 18, 2023 at 7:31 pm

    Because you start loving OIL

  26. @ask_why000

    December 18, 2023 at 7:31 pm

    Americans should get serious about bringing manufacturing shore side and they have the power through their patronage.

  27. @jasonford7216

    December 18, 2023 at 7:31 pm

    I know why..America is no good at anything

  28. @_123Ackerman

    December 18, 2023 at 7:31 pm

    3:38 Tim stop the 🧢

  29. @robertrada1660

    December 18, 2023 at 7:31 pm

    The cost in salary and standards make the difference..

  30. @PetrKerka-hc2vk

    December 18, 2023 at 7:31 pm

    Jste skvělí. Je 19.02.

  31. @luispalacio1168

    December 18, 2023 at 7:31 pm

    I will do made in America bye bye iPhone my next phone will be purism

  32. @luispalacio1168

    December 18, 2023 at 7:31 pm

    Now it is made vietnan mexico and India

  33. @PJVist

    December 18, 2023 at 7:31 pm

    because Americans are LAZY and ENTITLED

  34. @hermanrogers1325

    December 18, 2023 at 7:31 pm

    It is all about cheap labor and more profit. I have a iPhone 6 by Apple and it is 9 years old and still working just fine so now I don’t need another until this one stop working

  35. @sumomosu5522

    December 18, 2023 at 7:31 pm

    Labor cost are hight? How about we say why housing cost is high? You see there's how the system work people to provery. Seem like to me coporation don't want to pay worker the living wage.

  36. @YoutubeWatcher731

    December 18, 2023 at 7:31 pm

    You need science and technology graduates to assemble tiny phone components? 😀

  37. @neonnoir9692

    December 18, 2023 at 7:31 pm

    Purism is super shady and now insolvent. $2000 for a phone 🤣🤣

  38. @tim_allen_jr

    December 18, 2023 at 7:31 pm

    Phones are not so complex that the American worker's labor isn't sufficient. Too much racism guiding these type of misconceptions.

  39. @hunk0075

    December 18, 2023 at 7:31 pm

    Made in USA does not mean quality and Innovation. It could be just copycat technology in Asia.

  40. @PetrKerka-hc2vk

    December 18, 2023 at 7:31 pm

    I já mám mobila z Číny a jsem spokojen. Je 15.32 hod

  41. @hungrydrago

    December 18, 2023 at 7:31 pm

    Made in USA doesn't convey confidence as people think it does. Take tesla for example, cars made in the US is known to have lower quality than those production came out of Shanghai factory. It is a fact. Made in China doest mean low quality, it is sometimes hard to understand for little narrow brain.

  42. @ShimobeSama

    December 18, 2023 at 7:31 pm

    They should just do what Librem does and offer a range of products increasing in quality and price, from budget communist/arch-nemesis-produced models to high-end domestically produced models. Also, is it that hard to automate the assembly? Why do you need hundreds of people to manually turn screws in an industry where chips are made using lasers and magnets at a microscopic scale, or whatever it is they do that's 100x more complex than making an automatic assembly machine. Tesla should jump in and make machines to assemble iPhones for cheaper than random third worlders with screwdrivers.

  43. @redbutterfly88

    December 18, 2023 at 7:31 pm

    The truth is,.. very dangerous to put up a safe environment for the workers in the u.s. mass shooting, all gun violence u can imagine, robbery, workers rally, politics, shipping of all materials can be hastle too… this are all headache. Who wants to work in unsafe work states? U wont hear this problems in other country.

  44. @harryv6147

    December 18, 2023 at 7:31 pm

    U.S. manufacturing of phones, politicians made deals that put kick backs to their pockets and they sent manufacturing overseas. It has happen to almost every U.S. manufacturer. This is because of lobbying to shift manufacturing to the cheapest labor and support slave labor by proxy. The other thing is population is larger by a 100 times over the U.S. If U.S. education was any good U.S. could do much better.

  45. @Jose-ms9bm

    December 18, 2023 at 7:31 pm

    china and India are cheap Labor countries that's why apple goes there

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