Why the Apple iPhone isn't manufactured in the United States of America

[Throckmorton]

Pretty ironic that a communist country is a Libertarian paradise.

You know what happens if you try to unionize in China? You get blacklisted and can't get a job... if you're lucky.

 

[maluckey]

I still think that it's odd that we claim this phone is Chinese when only a few components are actually made in China. It IS assembled there, and the glass might still be made there, but most of it is Japanese and Germany (37 and 17 percent respectively).

I also think that it's odd that nobody has brought US immigration or slavery into this discussion.

I remember odd facts about history, such as the fact that slaves were considered "necessary" to pick and process cotton. It was said that without them, business would suffer and the southern economy couldn't continue. Eli Whitney shattered that myth rather quickly if I recall. (edit: of course southerneers rapidly decided that more is better and wanted MORE slaves and MORE money, instead of relying more on thechnology).

It's also been said by more than a few in these very forums that without the underclass of ignorant and abused immigrants working in the fields, that our food prices would skyrocket. Unemployment rates in Alabame have continued to fall in EVERY county since they effectively ended indentured servitude. Even stranger is that their rate of recovery is FASTER than the national average.

Oddly enough the same argument is made in reference to slaves in China. They crank out unimaginable volumes of work in horrid conditions. Foxconn employees have a waaaaay higher suicide rate higher than American soldiers and it just gets better. Despite being worked like slaves, they are routinely denied pay raises and even have promised raise rescinded for one reason or another.

Just saying that if someone forced the point, a solution would arrive. It always does.....

 

[DucatiMonster696]

Pretty ironic that a communist country is a Libertarian paradise.

You know what happens if you try to unionize in China? You get blacklisted and can't get a job... if you're lucky.

You sir are clueless.

China is not a "libertarian" paradise because government is wholly involved in almost every aspect of the economy and if you had actually read the article you'd of understood this fact.

 

[rchiu]

If management making millions doesn't want to pay for American worker salaries, why should workers making peanuts pay for American management salaries? I'd rather pay an asian manufacturer the money directly. Let them invest it in the products, rather than US CEO bonuses.

See the problem with you is you don't understand manufacturing is small part of the total cost for most products today with all the lean manufacturing and all that. Apple became popular not exactly because it was the best "manufactured" phone and product, but it was designed well, plus Steve Jobs magic sales touch. R&D, sales and marketing, and managing the whole operation to ensure efficiency and cost effectiveness is where the value is. And American company has long became innovation, technology, service oriented type of companies (name top 10 companies that's in manufacturing), very few remained in manufacturing and continue to be good in manufacturing. That ship has already sailed.

I know that's a bit unfair to workers relying on manufacturing industry, of course I know it's not their fault that the economy is shifting, and not everyone can be a manager, R&D guru or a sales guy. But it's misguided to place all the blames in "CEO", "1%" blah blah, it's a natural shift for country/economy that went from developing stage to developed stage. Government just need to help workers to deal with this shift and find either higher value manufacturing job or transition to other type of work. Yeah I know, easier said than done, but there is just no other way and blaming "CEO", 1% ain't help you any.

 

[halik]

Where is American wage $50,000 a year?

I'll move there tomorrow.

Average starting salary in 2011... try getting a college degree?

http://money.cnn.com/2011/02/10/pf/college_graduates_salaries/index.htm

 

[theeedude]

It's a small part of the total cost because it's the part that has been outsourced to low cost of labor China where workers are willing to live in barracks and get paid $17 per day. Don't assume it's going to stop with manufacturing though. China is in it for the whole enchilada, not scraps off America's table. They already took whole high speed rail industry from the Japanese to the point where they have Maglevs and High Speed rail and said sayonara to the Japanese companies and are competing with them abroad. They took their whole top to bottom aerospace and defense industry from the Russians, to the point where they can build their own Soyuz. You can pretend that high tech is the exception, they'll just stick to manufacturing, good luck with that. Eventually R&D will move there too to save money, then you'll be saying, see R&D is a small part of the total cost, it's all about sales and marketing. Then people like that Apple guy will be saying, see we aren't able to hire enough engineers in America, all the students are going into sales and marketing. Then before you know it, America will be a country that can't do anything but sell and market Chinese made goods to each other. That's where this is going if the most important thing is minimizing production cost and maximizing profit.

 

[BoberFett]

So effectively we have subjugated an entire country for our comfortable and cheap products. Furthermore, we have allowed a totalitarian government with a command economy to undermine our entire capitalist system just so we can have cheap shit. I guess that throws a lie in the face of any "free market" person who has an iPhone, doesn't it?

Wonder if Ron Paul has an iPhone, if he does, he's a hypocrite.

What the fuck does Ron Paul have to do with anything? And what kind of phone do you have?

You anti-Paulbots are nuts.

 

[LegendKiller]

What the fuck does Ron Paul have to do with anything? And what kind of phone do you have?

You anti-Paulbots are nuts.

Ron Paul and Austrian Economics can't deal with China, to an even greater extent than we can't deal with them right now.

You Paul Bots and your naive viewpoints are even worse.

 

[trenchfoot]

So then, who in the USA benefits the most from this arrangement with the Chinese? Our poor? Our middle class? Don't think so.

 

[BoberFett]

Ron Paul and Austrian Economics can't deal with China, to an even greater extent than we can't deal with them right now.

You Paul Bots and your naive viewpoints are even worse.

Says the Wall Street shill...

 

[BoberFett]

So then, who in the USA benefits the most from this arrangement with the Chinese? Our poor? Our middle class? Don't think so.

Even the poor in this country seem to have iPhones. They certainly wouldn't if they were manufactured here.

 

[Michael]

America doesn't do high tech manufacturing either. The chips are all made in Asia.

Actually, there are quite a few fabs in the USA. The article linked in the OP says, for example, that Samsung makes the CPU in the USA.

But let us assume you are right, can you tell me how much the chip designer makes compared to the fab? I suggest that you look at the gross margin for Broadcom and compare to TSMC.

BTW - when you look at TSMC, look at their cash flow statement and notice their depreciation and amortization charge. Do a little research on the equipment in their fabs and let me know what low cost geography they are made in (let's skip where they are designed in and where more of the profit goes to).

Michael

 

[Rifter]

so basically its bring back slavery and remove labour laws to get cheap labor here or deal with it being outsourced to china.

As mentioned above im not sure competeing with slave labour/no labour laws is a good idea, or a battle you want to win.

 

[LegendKiller]

Even the poor in this country seem to have iPhones. They certainly wouldn't if they were manufactured here.

Yeah, because that $65 in slave labor costs is so burdensome.

 

[LegendKiller]

Says the Wall Street shill...

Says the guy who thinks that under a "free market" everybody will just get along and China would stop completely funding their industries, manipulating their currency, forcing slave labor...etc.


Ohh and if we get rid of pollution controls here we'd be able to compete so much better.

GOD BLESS SMALL GOVERNMENT! Ohh shit, we're competing against one of the largest central governments in history...damn.

 

[cybrsage]

I think iPhones and such are made in China because the Occupy Wall Street people hate the US because they are socialists. Like how I tied in a few talking points into one sentence?

 

[Texashiker]

I like this part, and I think it explains the article perfectly

A foreman immediately roused 8,000 workers inside the company’s dormitories

In other words, the iphone is assembled in labor camps.

 

[Londo_Jowo]

Even the poor in this country seem to have iPhones. They certainly wouldn't if they were manufactured here.

iPhones (as with most cell phones purchased in the US) are subsidized by the respective phone service carrier and this is why they are so cheap to the average user. I don't think there are many iPhone users that will purchase the full price unlocked versions ($649 - $849 at the Apple Store).

 

[Exterous]

Why so many China bashers when India is a lot more worse? Oh wait, India has a free pass because it is a democracy right.

Oooorrrr because most of our stuff says 'Made in China' on it and not 'Made in India'. Even then there was enough of an outrage about call centers in India that some companies are moving them back to the US so I am not sure what free pass you are talking about

Yeah, because that $65 in slave labor costs is so burdensome.

I think its about more than just the money. Its about control and flexibility. Its about the ability to wake workers up in the middle of the night and have them work a 12 hour shift when you need to make a drastic change shortly before your product is released. There is a certain flexibility to having all of your workers forced to live on site and ready to work for the same wage whenever you need them to work. You can do things there that would never sit well with American workers

 

[Texashiker]

Its about control and flexibility. Its about the ability to wake workers up in the middle of the night and have them pick cotton

Fixed that for you.

Are we really talking about anything besides servants / forced labor / slaves?

Whether it was picking cotton in the 1800s, or making an iphone in the 21st century, we are talking about slaves.

Having the people live at the job site is nothing more then a company town. The employees are paid just enough to buy goods from the company store, and that is about it.

We are seeing a replay of what we learned in history class.

 

[BoberFett]

iPhones (as with most cell phones purchased in the US) are subsidized by the respective phone service carrier and this is why they are so cheap to the average user. I don't think there are many iPhone users that will purchase the full price unlocked versions ($649 - $849 at the Apple Store).

And those phones would cost hundreds of dollars more if made entirely using first world labor. Which would mean either more up front cost for the end customer or higher monthly rates. Either way the poor would be far less likely to have them.

Face it, third world slave labor is what keeps even the poor in this country outfitted with smartphones, big screen TVs and Xboxes.

 

[Trianon]

In other words, it is much easier to manage slaves than people.

You are thinking highly of Foxconn leadership, they don't even place their labor that high:
"Foxconn chairman likens his workforce to animals"
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20120119000111&cid=1102&MainCatID=0

 

[Gunslinger08]

Whenever people say that we should implement import tariffs, it makes me wonder if they understand the impact that would have, especially in the case of China. They would stop buying our debt because we wouldn't be sending them our consumers money anymore. Prices would rise (considerably) on every imported good as the tariff was priced in or (likely) production was moved to the US where labor costs a lot more. Interest rates would rise considerably to entice other nations to purchase our debt. Borrowing would be very expensive, which would ultimately put a lot of smaller businesses (that rely on revolving low-interest credit to make payroll) out of business. This would mean less people to buy those now US-produced items, so manufacturing would drop again. Unemployment would rise further, tax revenues would decrease more, entitlements would increase, which would mean a greater deficit.

Basically, you don't screw with the people that are keeping your country afloat in a bad economy.

 

[soundforbjt]

And those phones would cost hundreds of dollars more if made entirely using first world labor. Which would mean either more up front cost for the end customer or higher monthly rates. Either way the poor would be far less likely to have them.

Face it, third world slave labor is what keeps even the poor in this country outfitted with smartphones, big screen TVs and Xboxes.

Actually, I saw somewhere if the IPhone was made here instead of China the cost would raise by 23%.

 

[sunzt]

I like this part, and I think it explains the article perfectly



In other words, the iphone is assembled in labor camps.

pfft whatever.

They had a cup of tea AAAAAAAANNNNNNNNNNDDDDDDDDD a biscuit! Company Benefitz yo!