How a $2k 'Made in the USA' Phone Is Manufactured

Original Article ↗ Hacker News Discussion ↗

Scope of “Made in USA” and Supply Chain Reality

  • Commenters scrutinize the “Table of Origin” and note it stops well above the component level; many assume most chips, passives, display, and modem are still foreign.
  • The phrase “western distributor” is widely viewed as evasive: it says where parts are bought, not where they’re made.
  • Several people argue Purism should clearly list which parts cannot be sourced domestically (or at sane cost) instead of implying near‑total US origin.
  • PCB fabrication/assembly in the US is seen as meaningful, but some call “raw materials to finished goods” misleading if SoCs, modems, etc. are foreign‑fabbed.

Engineering Talent and Manufacturing Know‑How

  • Multiple EEs object to the claim you could “count” US skilled electronics engineers, saying there are plenty; they’re just working at larger firms or in software.
  • Consensus: Chinese and SE Asian hubs dominate because of scale, ecosystem, and speed, not innate skill differences. The US could do this but doesn’t pay for it.
  • The interview’s technical language (“spin up our SMT, it’s called Surface Mount Technology”) reads as marketing-speak, reinforcing doubt about the depth of in‑house expertise.

Pricing, Margins, and Market Position

  • Purism says COGS is ≈$550 (China) vs ≈$650 (US), but retail is $799 vs $2,000. Many are struck that a ~$100 cost delta justifies a >$1,200 price delta.
  • Defenders note: extremely low volume, US line setup, audits, and selling into “government security” markets justify higher markup and risk coverage.
  • Critics see opportunistic pricing in a niche (“Made in USA,” secure supply chain, liberty branding) with little direct competition.

Purism’s Reputation and Product Quality

  • Several users report multi‑year Librem 5 delays, difficulty getting refunds, warranty problems, and aggressive fundraising emails; some label the company a “scam.”
  • Others report good hardware experiences (especially older laptops and Librem 5 as a daily driver) and emphasize that it’s still one of the freest/most auditable phones.
  • Broad agreement that specs are old and performance/UI depend heavily on software optimization, but that no clearly superior free‑software phone exists yet.

Tariffs, Trade Policy, and Global Reaction

  • Long subthread on tariffs:
    • Critics: broad, rapidly changing tariffs create uncertainty, raise prices, disrupt supply chains, and push allies and firms to reduce US exposure.
    • Supporters: earlier free‑trade choices hollowed out US industry; tariffs and protectionism (CHIPS Act, IRA, etc.) are necessary to rebuild strategic manufacturing.
  • Non‑US commenters (especially in Europe) say recent US policy swings have severely eroded trust and accelerated efforts to avoid US tech/cloud dependencies.

Onshoring Feasibility and Alternatives

  • Many note it took decades of consistent policy for places like Taiwan and Shenzhen to become manufacturing powerhouses; US 4‑year swings and reversals (e.g., CHIPS Act uncertainty) are a structural handicap.
  • Suggested better approaches: targeted subsidies, clear long‑term industrial strategy, selective/gradual tariffs, and heavy investment in education and automation rather than blanket, shock tariffs.