Apple's iPhone supply chain faces sharply increasing costs in China

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Comments

  • Reply 21 of 31
    Quote:
    Originally Posted by kstlouis View Post


    I fully agree with supporting local industry when possible (I am Canadian, but the sentiment is the same), but I don't think you understand exactly how much this would increase the cost of these products. These workers are putting in 1.5 to 2 times MORE hours per week, and yet are still bringing home in one WEEK what many American/Canadian employees would be bringing home in a DAY. That is a massive increase in labour costs. Sure, you'd save a bit of money in shipping, but it wouldn't even come close to compensating. While it is unfortunate, especially since you guys could surely use the jobs right now, I can't think of any way that we could build these products in North America and still sell them at even close to the same price. VERY few people would be willing to pay for an iphone/droid/etc. with that much of a price hike.



    Oh I fully understand what it would do to the cost per item to move mfgring to the USA ... companies like Apple would not be able to charge $6-700 for an iPhone and still make $3-400 on the deal using cheap labor from countries like China (RE: article on the actual cost for building an iPhone). It is just time to stop exporting jobs at the cost of the American worker.
  • Reply 22 of 31
    anantksundaramanantksundaram Posts: 20,225member
    Quote:
    Originally Posted by Dr Millmoss View Post


    That's more than a tad knee-jerk, don't you think?



    No, I don't think so. I was (implicitly) referring specifically to his word 'exploitation' in the post that I responded to.



    The context and history of that use (in reference to labor) is pretty well understood, imho.
  • Reply 23 of 31
    anantksundaramanantksundaram Posts: 20,225member
    Quote:
    Originally Posted by nvidia2008 View Post




    Tricky situation.



    That, I agree with wholeheartedly.
  • Reply 24 of 31
    maestro64maestro64 Posts: 5,005member
    It is called chasing the grass huts, cheap labor always exist where the grass huts are and once the huts disappear so does the manufacturing.



    China with all it cheap labor killed so many countries ability to compete in the world market due to the fact these other countries had nothing to offer its work force other than cheap factory jobs. At least in the US there are other things people can do to make a living, so the question will be, can China do the same or will they loose out to places willing to offer cheap labor.





    All you who keep complaining about how little they are paid and the jobs should come back the US, you all act like they are force to work for little pay it not 100% that way, many of these people rather do these jobs then work in a field somewhere and not get paid or get pay in food. Also people in the US are not willing to work for such little wages, and before you go off and said they should not have too, you decide what is reasonable wags for someone, are you willing to work for minimum wage because that is what these people get paid in their countries.



    So many of you have this entitlement attitude that I would never work for such little pay or so many hours and these people should not. The only way you can afford to say that is because your parent probably did. I know my parent work long and hard for very little so I did not have too, but I do not run around and say hey everyone should make what I make no matter where they live in the world. As dumb as that sounds is how dumb it is to say these people are being taken advantage of.



    If you really feel that way get off this discussing board and get rid of you slave labor computer and other products and do something about. Otherwise you are no better than everyone else.



    Like I used to say to the tree huggers, you impact the earth as much as everyone else and unless you are living in the woods naked and living off the land you have no room to criticizes anyone for what they are doing.
  • Reply 25 of 31
    maestro64maestro64 Posts: 5,005member
    Quote:

    The report draws heavily from a teardown report of iPhone 4 from market research firm iSuppli. The El Segundo, Calif., firm placed the total bill of materials for the new smartphone at $187.51, but does not include labor and manufacturing costs. According to the Times, the combination of sharply rising wages, continued appreciation of the Chinese currency, and unsustainable labor practices are threatening both the margins of contract manufacturers and major brands and the stability of China's manufacturing boom.



    I can pretty much guaranty you this report is wrong, I have seen iSupply report on product my companies makes and their numbers are all over the place, they have no clue what Manufacturers are paying for parts. I can not say if their estimates are high or low since they been in both directions for the analysis I have seen them do.



    Even if wags do increase, it going to be a small percentage of the over all cost of the phone. Most all the other parts in the phone are produced in highly automated factories which labor is also a very small % of the cost, most of these places have very few people working in them.



    Oh for the whiner complaining about these jobs leaving America, the most expensive part in that phone are design by companies in America so most of the cost of phone goes directly into the hand of people in America.
  • Reply 26 of 31
    kibitzerkibitzer Posts: 1,114member
    Quote:
    Originally Posted by nvidia2008 View Post


    Africa will be next. Let all the exploitation continue!



    Sure, let's prevent the employment of jobless Africans at exploitive third-world wages. Better they should be free of such evil in order to continue feeding their starving children with cakes baked from a little grain and a lot of dirt.
  • Reply 27 of 31
    doroteadorotea Posts: 323member
    Quote:
    Originally Posted by Kibitzer View Post


    Sure, let's prevent the employment of jobless Africans at exploitive third-world wages. Better they should be free of such evil in order to continue feeding their starving children with cakes baked from a little grain and a lot of dirt.



    How about decent wages to live on?

    It doesn't have to be exploitation vs starvation (where exploitation is the better option)
  • Reply 28 of 31
    dunksdunks Posts: 1,254member
    If the world really was serious about poverty we would have a 0.001% tax on international currency exchanges. That is a speculative market that produces nothing except wealth for those who are already wealthy. 0.001% is negligible for most individual transactions but would still generate several billion dollars per day that could be earmarked for food and medical care for those in poverty.
  • Reply 29 of 31
    dr millmossdr millmoss Posts: 5,403member
    Quote:
    Originally Posted by anantksundaram View Post


    No, I don't think so. I was (implicitly) referring specifically to his word 'exploitation' in the post that I responded to.



    The context and history of that use (in reference to labor) is pretty well understood, imho.



    Perhaps you missed the overwhelming irony.
  • Reply 30 of 31
    newbeenewbee Posts: 2,055member
    Quote:
    Originally Posted by anantksundaram View Post


    Do you stop to think that it might actually make families better off, by affording them things that they otherwise could not have?



    Or, are material things such as toys and electronics and torches only for people like us?



    What makes most families "better off" are ... jobs! Wouldn't you agree?
  • Reply 31 of 31
    "The El Segundo, Calif., firm placed the total bill of materials for the new smartphone at $187.51, but does not include labor and manufacturing costs."



    A bill of materials that included labor and/or manufacturing costs would not be a bill of materials. I hate to be overly picky, but it would have been better to write "... the total bill of materials (which doesn't include labor and manufacturing costs) for the new smartphone ...".
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