More than a decade after trying to manufacture smartphones in the United States, a pioneering tech entrepreneur is speaking out offering hard-earned wisdom to companies now attempting to do what he once found nearly impossible.
Gregg Steinhafel, a former executive who spearheaded a failed attempt to build smartphones domestically during the early 2010s, says the dream of an American-made phone is achievable—but only with eyes wide open.
“There’s a lot of romanticism about building tech products on home soil,” he said in an interview. “But back then, what we ran into was a brutal supply chain reality and a cost structure that made it unsustainable.”
While his name isn’t widely known in Silicon Valley circles today, Steinhafel’s efforts predated current interest in onshoring high-tech manufacturing an issue that has become increasingly political amid U.S.-China tensions and a broader push for supply chain resilience.
His company, which attempted to combine design, software integration, and hardware assembly in a single U.S. facility, quickly learned that producing at scale without Asian-based suppliers and logistical support led to skyrocketing costs, delayed timelines, and limited innovation bandwidth.
“I’d tell today’s companies: learn from what didn’t work. Start small. Build partnerships with local suppliers. Focus on niche markets before going mass market,” he advised.
Today, the push to manufacture smartphones in America has found fresh momentum, bolstered by new federal subsidies, AI advancements, and a national desire to reduce reliance on China. Companies such as Librem and even rumors around major players like Apple reconsidering some assembly in the U.S. have rekindled interest in the idea.
But Steinhafel cautions that ambition must be matched with pragmatism.
“Don’t underestimate the ecosystem you’re trying to replace. It took China decades to build it. Replicating that in the U.S. will take time, commitment and a whole lot of patience.”