iMoved to China

1/23/2012

Here is a great article on how many Apple products have been made. For this article you will only be accountable for reading the first page, if you would like to keep reading please feel free to. Perhaps the line that stood out to me the most was that "Made in America" is no longer a viable option. If Apple were to move their operations back, what do you expect would happen to the price of iPhones, iPads, etc...? Assuming that the price of labor is more expensive in America, which it is, what would be the effect of such a move on the demand for Apple products or the supply of Apple products? Using a supply and demand graph, could you show this?

Here are a few additional questions I would like you to consider.
- From an economic standpoint, does it make sense to use cheapest possible labor?
- From an ethical standpoint, do you feel that Apple is obligated to produce in any one country?

iPhone factory

R10363073

1/24/2012 06:46:45 am

Okay here are my thoughts on the labor issue at Apple. The last time I heard, we live in a very selfish world. Do I agree with it? No, but at the end of the day, everybody wants more money for themselves. I wonder why it is even an option to manufacture Apple products in the U.S. based on this theory. It makes sense to simply maintain the same laborers for the company. It simply allows the company the best chance to make the most possible profit.

S. Griffin

1/24/2012 08:51:30 am

Beyond the simple transaction economics, the issue here is the social culture necessary for this sort of work. By raising the bar on what we consider proper quality of life, Americans have inadvertently cut themselves out of the factory workforce market.

Anything over forty hours a week is considered over time. Anything over 8 hours a day is over time.There are requisite breaks, exceptions for health, proper compensation for injured workers, benefits packages, and all these things cost a company time or money. People don't live in mining towns or factory towns any longer. The workers abroad are working over 60 hours a week on 12 hour shifts with room and board taken out of their pay - If the company owns their dorms and provides their food en mass, the amount they save paying for their workers in bulk out stripes the possible savings by paying their workers the required cost of living funds by miles. By having them on site, they can be called in for emergencies at all hours. By living in company-provided housing, the likelihood of these workers having any immediate family responsibilities is low. Even if they're married with children, the family is not living on-site, but are more likely hundreds of miles away in their original villages. In China, there is something called a 'Huko Card' which is a form of identification which allows a Chinese citizen free health care and other benefits from the state, meaning companies don't have to provide it. It also means these factory workers who have moved across the country for work are less willing to move their families if the bonus of a steady pay check does not outweigh the necessity of the Huko benefits, because the jurisdiction for each card is only for the citizen's home town. Move to another area and the benefits are not available. Americans, for good or ill, are far less likely to consider these acceptable accommodation.

It is a situation long in coming, from the early 1900's and the fight for worker's rights, to the shifting of production factories overseas in the 70's and 80's, to today. Demanding a certain standard of living one hundred years ago made factory work less cost efficient forty years ago, and the loss of jobs then means the required workforce isn't available in America today, because no one is training for jobs that don't exist.

The matter is far more complicated that simple numbers.

R10410186

1/25/2012 12:33:03 am

It is a fact that American workers are not as well driven in their work compared to many other countries. The flexibility of the foreign countries are what appeal to apple. Honestly ask your self it you would get up out of your warm bed in the middle of the night to go work an emergency shift.

r2242900

1/26/2012 01:05:32 pm

How is it a fact that American workers are not as driven as foreign workers? People fought, and died, so we wouldn't have to work twelve hours a day for less then a dollar an hour. The "flexibility" you are referring to is illegal in this country. America values civil liberties, China does not. In the long run, we win.

R10358580

2/2/2012 02:04:27 am

Can you explain how American workers are not as well driven? People in the U.S. are in need of employment just as much as people in other countries are. I don't think work ethic has much to do with the inability to manufacture these products locally, as the simple fact that the parts to assemble these products are found overseas.

R01956670

2/9/2012 01:11:06 pm

I agree with you, as sad as it is to say, Chinese workers simply work harder. Though I'll credit it their cultural group dynamic, it is what it is.

R10372587

2/9/2012 01:31:37 pm

I agree as well. Many, I won't say all, but many Americans are not as driven as we used to be. You see this even with illegal immigrants that come into our country. Most are willing to do jobs that we won't. It's sad.

R#10424321

2/9/2012 03:37:30 pm

I also agree. it is a known fact that people who come into this country illegally are the ones who are willing to take the jobs that no american wants just so they can stay in this country therefore that makes immigrants or people who are not american more driven as workers.

Matthew Rovegno

1/25/2012 02:52:45 am

I definitely feel like there is a labor issue wrong with Apple computers! I agree with that earlier statement from the above comment about how anything over 40 hours week is over time and thats for damn sure.

Alfredo Galvan

1/25/2012 02:55:35 am

At the end of the day it all comes down to the same, supply and demand, profits, and politics. Everyone wants a piece of the pie; Apple wants their $400,000 in profit per employee. Barack Hussein Obama wants to score good points for his re-election, pretending to care about our current economic situation. Americans want to keep paying the lowest price possible for their products, and they want it done efficiently. As far as manufacturing products overseas, the Chinese have the world’s largest military capable to invade anybody so we have to keep them happy.

R#10427556

1/28/2012 12:59:58 pm

I agree with you, everybody cares only about themselves. If the Americans would want to stop this hard Chinese labor it will be enough to declare economic boycott on Apple's products for a week or two. The price for their products to be made in the USA will be higher but if we protest against their overly paid salaries, maybe the price will stay the same.

#R10432564

1/25/2012 04:02:49 am

Business wise, it makes sense for Apple to make their products in China. Why would one go about paying an employee $8 an hour when he can pay for the same kind of work for only $2 an hour? From an American standpoint, yes, it would be great for Apple to make their products here to help boost our economy, but people's number one priority is going to be for themselves. Until Americans can compete with the workforce in China (which is not likely) I don't see why Apple would stop making their products overseas.

R10413028

2/9/2012 01:31:02 pm

I agree with you completely! Considering the business world is cut-throat, every company is only looking out for themselves as they are looking for every opportunity to make a larger profit. Therefore, for Apple it makes more sense to produce their products in China because it is cheaper overall which in turn creates a larger profit for their company.

R#10461966

2/10/2012 12:21:46 am

I also agree with this viewpoint. If I had the opportunity to expand out of the United States for production of my own product, and was trying to keep it cheap, America would not be my first option for labor. The fact is, people in other countries can give harder work for less pay. Here in America people are constantly worried about what their being payed and how they could be payed more. However, in China, workers are glad that their being payed at all because of the economy there is not about getting top dollar for every hour they work. To be frank, they live to work. It's just how their society has been brought up. I believe that staying overseas is in Apple's best interest, the last thing they need to worry about is unemployment. They're not the government.

Brian Knight

1/25/2012 04:34:39 am

It is up to our economy to develop into a system in which corporations will want to keep their manufacturing in this country. After all, I am sure an enormous portion of Apple's products are sold in the United States, and I feel that Apple should be more supportive of its greatest consumer. Overconsumption of foreign-made goods keeps this country on a roller coaster, and I hope to learn more about the relationship between overseas production and a country's economy. American's also need to start being more patriotic and favoring the consumption of American-made goods.

R10361779

1/25/2012 06:02:15 am

I agree with the comment above. It makes sense that Apple products are being manufactured overseas because they can get away with lower pay. Here in America working twelve hours a day and only receiving two dollars an hour is unheard of, whereas anywhere overseas it is common.

R10460329

1/25/2012 09:28:17 am

As the article said, workers overseas take lower wages than what is offered here in the United States, and I think thats one of the main reasons why Apple doesn't support manufacturing in the United States. With that being said, Apple products are a bit pricey compared to competing brands, whether its phones, tablets, or computers. If Apple started manufacturing their products here in the United States then the workforce assembling these products would be paid much more than the workers overseas, so wouldn't that force Apple to raise the prices of their products to support the higher wages of workers here?

R10354244

2/9/2012 02:22:43 pm

Although I would like to say that I am completely against Apple providing more employment opportunities overseas than in the United States, I have to agree that even now I look at Apple's price tags for their products and think they are pretty pricey. If Apples moved their production plants home to the United States would create a drastic rise in a already high price for their products.

10368003

1/25/2012 11:07:17 am

Pretty much what everyone is saying sums it all up. When it triples the cost to make your product here, it seems pretty stupid to do so from a business standpoint.With manufacturers working for much lower wages in foreign countries, it is near impossible for our American job market to compete when our pride is as high as it is. A possible solution to this problem would be to set a higher tax on imported goods. This would give our government more money and promote domestic jobs. If it suddenly becomes more expensive to outsource then a company like apple would most likely bring more jobs home. It would be a win win.

R10436673

1/25/2012 11:47:11 am

There's no question that if apple moved their production back to the US that the price for apple products would increase drastically. Although it would create more job opportunities here in the US, it would not be a smart move for Apple as they would have to pay more for employees and for the materials required to make their products. This would be shown on a graph by supply increasing and demand decreasing. From an economic standpoint for Apple, it makes sense for Apple to produce and have employees in foreign countries. As far as ethics go, I feel it's up to the CEO of a company to make the decision of where to produce their goods. It's their company, they put their own money in investing into their idea when no one else did, so if they feel the need to produce in another country then so be it. No one should tell someone else how to run their business especially one as successful as apple.

James r2242900

1/26/2012 12:59:31 pm

From a economic standpoint, it makes absolutely no sense for Apple to change a business model and drive up costs for something that makes no difference to most people. Apple is a business, they produce products that people want and charge what they feel they are worth. They are not suppose to fix America's problems. Bringing manufacturing back to the United States does very little to fix our nation's problems anyway. A good portion of the jobs would be minimum wage or not much better. We need more engineers, which is the kind of job Apple keeps at home.

R10313085

1/28/2012 09:38:49 am

Apple and every major corporation that needs mass production of products will always use china and other countries where the labor is cheap. It wouldn't be smart for them to change there business model.

R10432816

2/9/2012 10:57:34 pm

I completely agree, why change there is no reason too! The labor is cheaper and therefore it is only logical that all major companies who need mass labor go to the places in the world where it is the cheapest.

R10432816

1/29/2012 07:18:41 am

What apple is doing makes sense so I do not see why this is a suprise to anyone. I mean is this not what America is about, finding the most profitable way to make the best product. As far as a ethical responsibility it may not be right but it is the most profitable way.

10403422

1/29/2012 02:49:35 pm

From a buisness stand point, making apple products in China is more benifitial for the buisness itself. However, the increasing number of American companies manufacturing in other countries actually hurts the economy. Overseas manufacturing takes away jobs from the american public and raises unemployment, as well as puts many other American companies out of buisness because they cant keep up with China's production and profitablity.

R10429661

1/30/2012 04:57:19 am

Apple is a business, and it is a business's goal to make as much money as it can. With that being said there is no reason for Apple to manufacture things is the United States because it does not make sense for them. Doing things overseas gives them a significantly greater amount of money per purchase than it would it the United States. Apple has no obligation to help out American by creating jobs through their business. It is up to their CEO and if he thinks he is doing what is best then you can not really argue that point especially when Apple is as successful as it is.

R10492644

1/30/2012 06:25:06 am

I think this article is very true. There is no American plant that could match a plant that is overseas. I think it would be great to have those jobs back over here and maybe we wouldn't have so many people still unemployed but there are jobs that Americans refuse to take like working at a fast food place or being a janitor. People do not want to work those jobs so why would they want to get up at midnight and be given a biscuit, tea and work a 12 hour shift? That is why these jobs are not here because the American people would complain about it. I don't think many people would want to live in a dormitory either!

Wesley Hayes

2/1/2012 12:59:51 am

It is better for the company but not for Americans technically. Even though it would create more jobs in America the price for the already expensive Apple products would take a sharp increase. Ethically it is technically un-American.

R01956770

2/9/2012 01:13:50 pm

i hate to say this but apple has the right idea, as an American, it sucks to hear and see companies move abroad. From a business stand point, apple sells iPhones in more then just the United States. Give it 5 years and I'm sure china will be buying more apple product then we do. If they don't already. So think about it, who do they really owe?

10337145

2/9/2012 03:48:00 pm

Apple should be more loyal to the US, and know what situation we are going through here. They are a very well off company and could afford to have just a slight set back to benefit the whole country.

R10506939

2/9/2012 04:15:28 pm

At the end of the day Apple is doing what is best for Apple. While we might find it admirable for them to look out for the citizens here in the U.S., in reality they have no obligation or desire to take care of Americans. Who can blame them? Cheaper, more efficent labor in foreign countries means a more profitable and better functioning business for Apple. If they were to bring jobs back home they would be devestated when higher prices on their products cut deeply into their bank account.

R10327175

2/9/2012 10:30:16 pm

I don't think that people would be willing to pay the extra money for Apple products in the event that Apple does move its jobs back to the U.S. Moving back the jobs is not going to do anything if the people are not willing to buy their products.

R01962697

2/9/2012 11:03:29 pm

I do not blame apple for doing what is right for them. They do not need to look out for the American economy. No other companies think about the U.S. economy when they are making decisions. Why should apple?

R10316907

2/9/2012 11:58:36 pm

It is all about saving money for ever big company including Apple. Oversea work on top being faster it is also cheaper because oversea factory workers work for a lot less then American factory workers. So Apple is just trying to save money, which is especially important in this current economy to maximize your profit.

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