Originally Posted by LuxoM3 Since Apple makes about $400 gross profit per iPhone...
Why not bring those jobs back to the USA?
Yes yes, I know - tech, manufacturing, etc.
But think about it...
We put jobs in China because corp profit margins were thin, so they needed cheaper labor and massive volume to eek a profit.
Well guess what... Apple has high profit margins, high volumes... so can they afford a little more in labor costs? Would adding $1 to every iPhone be worth having a guy in the USA build it?
Just an idea...
I'm not sure which # that you pulled out of your ass is more ridiculous- the $400 gross profit per phone figure, or the +$1 if Apple's manufacturing was magically moved to the US figure. Do you have sources for these numbers? Nevermind, it's easier to pull stuff out of your ass and be as sensational as possible, instead of trying to ascertain real numbers which would lead to the conclusion that your proposition is not as easy as you make it seem. $1 extra per phone.. Really now? You can't possibly be that grotesquely ignorant, so I'll chalk it up to purposeful dishonesty. Either way, maybe these quotes from the recent NYT article will give you a bit of insight:
“The entire supply chain is in China now,” said another former high-ranking Apple executive. “You need a thousand rubber gaskets? That’s the factory next door. You need a million screws? That factory is a block away. You need that screw made a little bit different? It will take three hours.”
Foxconn Technology has dozens of facilities in Asia and Eastern Europe, and in Mexico and Brazil, and it assembles an estimated 40 percent of the world’s consumer electronics for customers like Amazon, Dell, Hewlett-Packard, Motorola, Nintendo, Nokia, Samsung and Sony.
“They could hire 3,000 people overnight,” said Jennifer Rigoni, who was Apple’s worldwide supply demand manager until 2010, but declined to discuss specifics of her work. “What U.S. plant can find 3,000 people overnight and convince them to live in dorms?”
Another critical advantage for Apple was that China provided engineers at a scale the United States could not match. Apple’s executives had estimated that about 8,700 industrial engineers were needed to oversee and guide the 200,000 assembly-line workers eventually involved in manufacturing iPhones. The company’s analysts had forecast it would take as long as nine months to find that many qualified engineers in the United States.
In China, it took 15 days.
NYT estimates building in the US would add $65 expense to each phone. And then..
But such calculations are, in many respects, meaningless because building the iPhone in the United States would demand much more than hiring Americans — it would require transforming the national and global economies. Apple executives believe there simply aren’t enough American workers with the skills the company needs or factories with sufficient speed and flexibility. Other companies that work with Apple, like Corning, also say they must go abroad.
The complexities, costs, logistics, and labour pool issues of manufacturing in the US, for a company like Apple needs such an unprecedented massive level of scale to satisfy it's products unmatched demand, simply makes the proposition impossible for now. This isn't something you can simply throw money at to solve.