The move comes after statements from President Elect Donald Trump revealed that he wants to bring manufacturing jobs back to America. Trump said, "We're going to get Apple to start building their damn computers and things in this country instead of in other countries."
"Apple asked both Foxconn and Pegatron, the two iPhone assemblers, in June to look into making iPhones in the U.S.," a source said. "Foxconn complied, while Pegatron declined to formulate such a plan due to cost concerns."
Although Foxconn has been working on the request, Chairman Terry Gou isn't enthusiastic due to an inevitable rise in production costs. "Making iPhones in the U.S. means the cost will more than double," said a source.
The person added that some in Apple's supply chain believe that Trump will push Apple to make certain iPhone components in America. IHS Markit estimates that it currently costs about $225 for Apple to make a 32GB iPhone 7.
Apple, Foxconn and Pegatron declined to comment. Please follow iClarified on Twitter, Facebook, Google+, or RSS for updates.