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Is it because of the cost of production or the lack of interest??
Your thoughts PLEASE!
There aren't any MP3 players, period, made in America, so far as I know. There isn't much in the way of electronics manufacturing stateside in general, in fact.
The answer is comparative advantage. More can be made for less, and shipping is cheap. Production of larger items overseas is less common (there were attempts to do this by the American auto makers, but it's more costly to ship a car than an iPod). A lot of that moved back (or never moved overseas because after research, they found it wasn't worth it). Some is done in Mexico, because you don't have the high shipping cost.
Look at BMW, their SUVs sell, like all trucks, better in the US than elsewhere (relatively speaking), and so they are produced in South Carolina. Whereas their cars have to be shipped, so you only see their more premium cars sold here (and at a higher cost) relative to Europe.
We are also good at producing some things, and less good at others. It all comes down to costs. And it's not straight up labor costs, either. There are many things that factor in to the delivered cost of a product, cost of labor being one small part of that puzzle. In electronics, rare earth metals play a part in it as well.