Capt.Storm Posted June 21, 2016 Share Posted June 21, 2016 (edited) Why are they made in China? Do you guys buy into this? The New York Times asked that question, and after an extremely well-researched report involving interviews with both former and current executives at Apple, the answer the Times found is both simple and chilling: iPhones aren't made in America because they just can't be. The infrastructure and labor force doesn't exist at the levels necessary to support Apple's operations -- it's not even close. The Chinese factory where most iPhones reach final assembly employs 230,000 workers. I just asked Siri how many cities in the US have a population higher than that, and the answer was a mere 83 cities -- and that's total population, not workforce. With an average labor force of around 65 percent of the population, only 50 US cities are large enough to provide that kind of labor pool... and even in the biggest US city of them all, New York, 230,000 people still amounts to almost three percent of the city's entire population. Can you imagine three out of every hundred New Yorkers on an assembly line, cranking out iPhones every day? https://www.engadget.com/2012/01/22/why-apples-products-are-designed-in-california-but-assembled/ Edited June 21, 2016 by Capt.Storm Quote Link to comment Share on other sites More sharing options...
Mikeadoo Posted June 21, 2016 Share Posted June 21, 2016 Good lord that is a shit ton of people working in a factory!! Is that all at one location??? Could you imagine how much an iphone would cost with US wages for assembly? I would think there has to be some robotic production used rather than just 230,000 kids chained to a stool with a soldering tool in their hands Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 2 minutes ago, Mikeadoo said: Good lord that is a shit ton of people working in a factory!! Is that all at one location??? Could you imagine how much an iphone would cost with US wages for assembly? I would think there has to be some robotic production used rather than just 230,000 kids chained to a stool with a soldering tool in their hands They make it sound that way don't they. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 (edited) And maybe it is but could they not build them here at least in one state? They didn't say labor cost was a contributing factor till further down in the story..saying it would add 65 bucks to the phone if made here. according to the New York Times, the increased cost of paying American wages to workers would add $65 to the cost of an iPhone. The other costs, added together, probably wouldn't drive the unsubsidized price of a 16 GB iPhone 4S over US$1000. But the dollar cost of manufacturing in America isn't the biggest issue that's driving Apple's decision to outsource manufacturing to China. Instead, it's about who can build the greatest number of iPhones within the shortest period of time, all while remaining flexible and instantaneously adaptable to Apple's needs. According to one current Apple executive, "The US has stopped producing people with the skills we need." Edited June 21, 2016 by Capt.Storm Quote Link to comment Share on other sites More sharing options...
02sled Posted June 21, 2016 Share Posted June 21, 2016 Worlds largest factory in China is 17,000 workers Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted June 21, 2016 Share Posted June 21, 2016 3 hours ago, Capt.Storm said: And maybe it is but could they not build them here at least in one state? They didn't say labor cost was a contributing factor till further down in the story..saying it would add 65 bucks to the phone if made here. according to the New York Times, the increased cost of paying American wages to workers would add $65 to the cost of an iPhone. The other costs, added together, probably wouldn't drive the unsubsidized price of a 16 GB iPhone 4S over US$1000. But the dollar cost of manufacturing in America isn't the biggest issue that's driving Apple's decision to outsource manufacturing to China. Instead, it's about who can build the greatest number of iPhones within the shortest period of time, all while remaining flexible and instantaneously adaptable to Apple's needs. According to one current Apple executive, "The US has stopped producing people with the skills we need." That's huge, I thought an iPhone cost less than $25 to make. Gotta love the crapple loyalists. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 Just now, ArcticCrusher said: That's huge, I thought an iPhone cost less than $25 to make. Gotta love the crapple loyalists. Phones cost more then you think. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted June 21, 2016 Share Posted June 21, 2016 4 minutes ago, Capt.Storm said: Phones cost more then you think. I know, it's about $200, so a $65 adder is huge. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 1 minute ago, ArcticCrusher said: I know, it's about $200, so a $65 adder is huge. I dunno..but the above said it's way more apparently. according to the New York Times, the increased cost of paying American wages to workers would add $65 to the cost of an iPhone. The other costs, added together, probably wouldn't drive the unsubsidized price of a 16 GB iPhone 4S over US$1000. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 3 minutes ago, ArcticCrusher said: I know, it's about $200, so a $65 adder is huge. I guess your right on the cost to make it! Apple’s $649 iPhone 6 Reportedly Costs $200 to Make Victor Luckerson @VLuck Sept. 24, 2014 Consumer With Apple's iPhone 6 Colin McConnell—Toronto Star/Getty Images 24-year-old Dani Winters lined up since Wednesday at 6pm to get his 128GB iPhone 6. Apple is renowned for its innovative products, its sleek hardware design, and, of course, its fat profit margins. That last point is as true as ever with its new iPhone 6, for which Apple is charging more than three times the cost of components and manufacturing. According to a teardown report from research firm IHS, the components and manufacturing cost of a 16GB iPhone 6 cost Apple $200.10. The device is selling for $649 in the U.S. without a contract with a wireless carrier. That gives the device a profit margin of about 69%. The iPhone 6 Plus, which costs $100 more than its smaller cousin, costs just $15.50 more for components and manufacutring, according to IHS. That’s a 71% margin. The biggest expense for both devices is the touchscreen, which costs $45 on the 4.7-inch iPhone 6 and $52.50 on the 5.5-inch iPhone 6 Plus. The iPhone 6 Plus’s oth Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted June 21, 2016 Share Posted June 21, 2016 1 minute ago, Capt.Storm said: I guess your right on the cost to make it! Apple’s $649 iPhone 6 Reportedly Costs $200 to Make Victor Luckerson @VLuck Sept. 24, 2014 Consumer With Apple's iPhone 6 Colin McConnell—Toronto Star/Getty Images 24-year-old Dani Winters lined up since Wednesday at 6pm to get his 128GB iPhone 6. Apple is renowned for its innovative products, its sleek hardware design, and, of course, its fat profit margins. That last point is as true as ever with its new iPhone 6, for which Apple is charging more than three times the cost of components and manufacturing. According to a teardown report from research firm IHS, the components and manufacturing cost of a 16GB iPhone 6 cost Apple $200.10. The device is selling for $649 in the U.S. without a contract with a wireless carrier. That gives the device a profit margin of about 69%. The iPhone 6 Plus, which costs $100 more than its smaller cousin, costs just $15.50 more for components and manufacutring, according to IHS. That’s a 71% margin. The biggest expense for both devices is the touchscreen, which costs $45 on the 4.7-inch iPhone 6 and $52.50 on the 5.5-inch iPhone 6 Plus. The iPhone 6 Plus’s oth That cost does not include the R&D involved in the design and a $65 adder is quite significant. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 1 minute ago, ArcticCrusher said: That cost does not include the R&D involved in the design and a $65 adder is quite significant. Still they could make money doing it in the US also..maybe not as much but come on. Quote Link to comment Share on other sites More sharing options...
soupkid Posted June 21, 2016 Share Posted June 21, 2016 I find it very hard to talk holding an apple to my ear !! Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 (edited) I mean even if it took another 100 to make in the US it would still be 349 for a profit. Edited June 21, 2016 by Capt.Storm Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 (edited) now I just read that since wages are going up in china they are moving to asia..wtf. Wages went from 150/month in 2009 to 700/month in 2014 and they are now saying there is a labor shortage in china also. Edited June 21, 2016 by Capt.Storm Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted June 21, 2016 Share Posted June 21, 2016 12 minutes ago, Capt.Storm said: I mean even if it took another 100 to make in the US it would still be 349 for a profit. It still magnifies the bottom line. Hey I am far from an Apple supporter buy do understand what an over 30% increase in cost does to the bottom line. Lets say you have a product that costs you $100 and you wish to sell it for $125. You have a willing customer except they want a 12.5% discount, try and calc what what does to your bottom line, it cuts your profit in half. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 1 minute ago, ArcticCrusher said: It still magnifies the bottom line. Hey I am far from an Apple supporter buy do understand what an over 30% increase in cost does to the bottom line. Lets say you have a product that costs you $100 and you wish to sell it for $125. You have a willing customer except they want a 12.5% discount, try and calc what what does to your bottom line, it cuts your profit in half. Thing is they could have been profitable here also..if not we might as well say we are fawked, Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 Hell if they did have a bad year you know the gov would bail them out..look at gm. Least we would have more people working. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 Really people I'm serious about this issue. Chit needs to change and we need to demand it. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 and all we have to do s boycott apple and others like them. But we won't. We won't stand for anything so we will fall for everything. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 21, 2016 Author Share Posted June 21, 2016 The figures don’t give a complete picture of the costs that go into the iPhone. Apple also spends money on research and development, software, shipping, marketing, licensing and other costs. But even with all expenses included, Apple’s margins are huge. The company had gross margins of 39.4% in the most recent fiscal quarter, an improvement from 36.9% the year prior Quote Link to comment Share on other sites More sharing options...
Gold Member Kivalo Posted June 22, 2016 Gold Member Share Posted June 22, 2016 2 hours ago, Capt.Storm said: and all we have to do s boycott apple and others like them. But we won't. We won't stand for anything so we will fall for everything. The consumer has ALL the power. Now if they only had the balls and backbone to utilize it... 1 Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 22, 2016 Author Share Posted June 22, 2016 9 minutes ago, Kivalo said: The consumer has ALL the power. Now if they only had the balls and backbone to utilize it... What!!! To not buy the newest and greatest?? Hell I'm still using a old flip phone from prolly 5 years ago. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted June 23, 2016 Author Share Posted June 23, 2016 More excuses why apple can't manufacture here in this great country of we can do anything. http://www.popsci.com/why-trumps-idea-to-move-apple-product-manufacturing-to-us-makes-no-sense Quote Link to comment Share on other sites More sharing options...
Gold Member Kivalo Posted June 23, 2016 Gold Member Share Posted June 23, 2016 On 6/21/2016 at 8:53 PM, Capt.Storm said: What!!! To not buy the newest and greatest?? Hell I'm still using a old flip phone from prolly 5 years ago. My father, an electrical engineer by trade, also uses a flip phone. Quote Link to comment Share on other sites More sharing options...
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