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This guy went undercover and come back with some great story points. The big question at the bottom of the page. So 450 a month, vs 450 a week for us, what are we doing wrong?
Quote:
Leswing: Here in the United States, we have President Trump now, and one of his big themes is bringing manufacturing back to the United States.
Zeng: From the labor perspective, I don't think it's very realistic for bringing labor-intensive manufacturers into the US. Why I'm saying that — just think about wages. Chinese people are getting 2320 yuan, which is about $400 per month.
Last edited by toosie; 04-21-2017 at 04:12 AM..
Reason: TOS - copyright - just link and brief snippet please
Cannot read your linked article - Business Insider chokes on my ad-blocker.
But to address the cost benefit of China vs USA - that's not it. The cost incurred in China for each iPhone is about 4% of the total cost of the unit. Assuming that the iPhone costs $250 per unit (and that's a rough but in the ball park estimate, because cost changes with the componentry used in each unit) that works out to about $10 per unit. Keep in mind that these phones can sell for $650, so there's room to absorb the extra cost of assembly, but at a profit to Apple.
The reason why Apple assembles iPhones in China is because the Chinese workers live in corporate barracks next to their electronics assembly plants and are always available to meet shifting demands from Apple for changes to their iPhones produced. The only way Apple moves iPhone production to the United States is if American workers are willing to live in dormitories next to their plants, forego families and social lives, work 12 hour shifts 7 days a week, and ready to immediately adjust to demands for changes to the assembly process.
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