Why the iPhone is not manufactured in America, despite Apple being an American company.

[pyroscott]

Migrated from Original Forum. Originally Posted 24 January 2012

 

 

According to

"How the U.S. Lost Out on iPhone Work" the first iPhone was set to be made in the USA, as most of their early products were, but after carrying a prototype iPhone in his pocket, Steve Jobs noticed dozens of tiny scratches in the plastic screen caused by keys in the pocket, Steve Jobs decided to change the screen to a glass made by Corning. There were no American factories that could ramp up production that fast and cut the glass screen for the iPhone.

China's factories could though. Several weeks later, the iPhones were on their way to retail outlets.

 

The

new york times article states: "It isn’t just that workers are cheaper abroad. Rather, Apple’s executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that “Made in the U.S.A.” is no longer a viable option for most Apple products.

It is a rather interesting article, and it illustrates that the hunger of American factories is no longer there, compared to the flexibility and willingness of the Chinese factories.

[legion125]

Migrated from Original Forum. Originally Posted 24 January 2012

 

The U.S. moved to being a service economy decades ago and although it needs manufacturing jobs, the Multi-Nationals go where there is a convenient labor pool they can get cheap. The article mentions that Foxconn workers live on site and are at the beck & call of management. They work 12 hour shifts, are paid a dollar/hr and do the same repetitive work that drives them to suicides. The same type of repetitive work that plagued the U.S. auto industry in its infancy. The reason the ChiComs are so responsive is because it boils down that they have a slave labor pool. Once some left wing human rights group makes this their cause and it gets critical support from the public, Apple will be forced to make changes and its current model won't be as competitive as before.

[S4GRU]

Migrated from Original Forum. Originally Posted 24 January 2012

 

*shakes head*

[pyroscott]

Migrated from Original Forum. Originally Posted 24 January 2012

 

I don't China has near the unemployment/welfare system the U.S. has. You would be very hard pressed to find people willing to live on site here in the US. You would have to pay something in the $30 per hour range to get people to do that. Not $30 every few days...

[legion125]

Migrated from Original Forum. Originally Posted 25 January 2012

 

China has been switching from an agricultural economy to and industrial base for the past two decades, it's just with so many people it takes a while. If you look what the culture is going through, its just like the U.S. in the early 1900's. In Asia you still have a low education, entry level pool of employees which is perfect for starting a manufacturing base because you can get away with low wages. Here in the U.S., its better but not conducive to manufacturing jobs unless its a high skill segment that's needed. Boeing is a good example.

[pyroscott]

Migrated from Original Forum. Originally Posted 25 January 2012

 

It is impressive how many engineers they were able to hire to facilitate the manufacturing. No way anyone would be able to hire that kind of quantity in the US, or at least not quickly.

[legion125]

Migrated from Original Forum. Originally Posted 26 January 2012

 

Here's an article that somewhat summarizes our discussion and Apples attitude toward its labor pool in China. Obviously they are not going to do anything about it unless they have too. They already mention that people care more for the iPhone than the labor conditions of underpaid workers, and as long as its suppliers keep jumping through their hoops then thing will be ok.

Former execs speak out about Apple negligently treating overseas factories, labor conditions

 

http://www.phonearena.com/news/Former-execs-speak-out-about-Apple-negligently-treating-overseas-factories-labor-conditions_id26305

[pyroscott]

Migrated from Original Forum. Originally Posted 26 January 2012

 

Most people will always turn a blind eye towards the suffering of others to save a buck. Nike had all that bad press about sweatshops and bad working conditions and still sits within the leaders for athletic gear. I think unless it comes out that Apple is using stem cells from forced abortions in their products, they won't hurt one bit from bad press.

[legion125]

Migrated from Original Forum. Originally Posted 27 January 2012

 

Here's an article I found on BGR. I guess the NYT article is starting to make the masses aware. Tim Cook says that they really do care about they're supplier partners, they really do.

 

http://www.bgr.com/2012/01/27/apple-ceo-we-care-about-every-worker-in-our-supply-chain/

[pyroscott]

Migrated from Original Forum. Originally Posted 27 January 2012

 

I'm sure that they care about their public image and their bottom line, but I bet if they could make their retina display cheaper and better if it was made out of actual human retinas, they would find a way to do it.

[legion125]

Migrated from Original Forum. Originally Posted 29 January 2012

 

Here's a good companion piece to Pyroscott's original article. Adds some interesting insight to some of whats been discussed.

http://www.cnet.com/8301-30976_1-57367625-10348864/reporters-roundtable-apples-china-problem/?tag=epicStories