Why Does Apple Manufacture iPhone in Asia?

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^_^ Posts: 4,429
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imageWhy Does Apple Manufacture iPhone in Asia?

The New York Times has published a lengthy, but fascinating piece titled "How U.S. Lost Out on iPhone Work," offering an interesting insight into Apple's supply chain.

Not just Apple, but almost every consumer electronic company's manufacturing is outsourced to Asian countries. So what's the reason behind that?

Read the full story here

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Comments

  • tommy
    tommy Posts: 28
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  • here it is...
    here it is... Posts: 1
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    it's all about cheap labor, apple or any other company for that matter can say anything they want but at the end of the day why pay an American $10-15 an hour when you can get 10-15 employees over there for that amount and no insurance and get them to work 12+ hours per day.It's called slavery as I remember it right but of course those corporations use another term for it.feel free to google some of the documentary videos/films online about how "well" those employees/slaves are being treated.
  • axe
    axe Posts: 185
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    Well would you mind paying USD 900 for an iPhone 4s? Why do uou think you pay $199 or $299 for 2 yrs contract new 4s? You should be glad the world has a place called china. It's not cheap labour. It's living lifestyle & cultural differences. If you think china cheap labour, i have not seen indonesian or bangladeshi.
  • Chris
    Chris Posts: 736
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    I didn't realise slaves were paid? I think your comment goes a bit far...
  • axe
    axe Posts: 185
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    I mean u hv not seen indonesian & bangladeshi.
  • Chris
    Chris Posts: 736
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    Thailand is another example. Of course, these companies dont have to deal with unions either.
  • kraken
    kraken Posts: 36
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    On the daily show, they said that at Foxconn, the low wages only reduced the costs of iPhones by ~30%. I know I would pay 30% more for my devices if it meant people were getting a living wage and humane working conditions.The real problem seems to be that the US is horrid at deploying people, and even worse at training people. The Chinese really shouldn't have more and better engineers than us. With closer to ~30% unemployment (the official figures exclude a lot of people) we should be training new engineers to compete in the global economy. And the intelligent people should be able to be educated for free or at least without them incurring tens of thousands of dollars of high interest debt. Instead, we cut education and use the money to drop bombs, harass travelers, and buy billionaires more Chinese made Yachts.
  • genXhippie
    genXhippie Posts: 95
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    I totally concur, spot on.
  • Coozoe
    Coozoe Posts: 3
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    Our country is run by banks. Money is always the bottom line and also the only line. Apple is just one of the boys.Our schools have stunk for a long time too. We don't get it and never will.
  • bunc
    bunc Posts: 10
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    I work for 3 US dollars an hour in Croatia. And in China they work for less for sure, this is not good when big corporations exploting people and getting richer all the time.
  • Marcello
    Marcello Posts: 19
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    it reminds me of a similar story reported by a software engineer employed for a while by tiscali in Sardinia, italy. they were somehow asked to live in dorms & be avail 24hr for Tiscali requirements & they were signing a contract that wouldn't last longer than six months.this is however a policy for start-up companies only can benefit government funds & hire very young & inexperienced, (not unskilled, i have opened & fixed iPhone screen myself several times & it does require some skills to do glass, digitizer & LCD maintenance) employees who do not get affected by giving up their privacy while sharing dorms. marcello l'aniello
  • Hendrix
    Hendrix Posts: 16
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    The answer is simple Asians love to work all western country's love to complain and winge and **** cause they are too lazy to work, ohhhhh I carnt work today I have a sore finger, maybe it is monday already? or I really would rather be playing golf or fishing today, how many sick days do I have again? It is simple really.
  • J
    J Posts: 131
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    Mabye sir we are just too privledged. You know we typical Americans are the worlds top 10 percent of the population in terms of wealth? That sir is slavery to us but to those men its an oppurtunity, don't pity them sir because they are proud for what they do.
  • Patsy
    Patsy Posts: 3
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    What a bunch if bs. I own an I phone and it will be the last apple product I buy. We as Americans need to stop buying products that are not made here in our own homeland. Not to mention sending our jobs over seas and putting us in the the unemployment line. To all of those who want to open there eyes on what's going on out there, get the book "Death by China" and read it!
  • Tony
    Tony Posts: 145
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    And this is why the China, US & Europe will never go to war. We employ them with our manufacturing products. Without us and Europe, they would still be farmers. And our education, they love coming here also. I work in silicon valley and I see this all the time. In fact, silicon valley should be called "silicon-indo-asia". Thats how bad it is. It is cheaper to hire them than American born educated students.
  • Kiwiholden
    Kiwiholden Posts: 189
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    No way! I'd let them whip them just so I could pay 10% less.Talk for ya self.If there happy to do it I'm happy to let them
  • John
    John Posts: 790
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    You're so ignorant. How do u think we get our fruits and vegetables year round? Overseas! If you will stop buying products that aren't made in America then you should just starve and die in a ditch somewhere.
  • Ryan
    Ryan Posts: 260
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    For the last few days, your website has forwarded me to a rogue virus download. You should probably get that fixed.
  • Hmmm?
    Hmmm? Posts: 59
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    They may need that kind of scale now but what about when they first launched the iphone? And 8700 engineers to oversee the manufacturing of iphones, really?
  • Andy
    Andy Posts: 1,127
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    I have no idea what you guys are angry about. To you it might be slave wages. But to them it is not. I was in Hong Kong a few years ago and a plate of food at a local restaurant cost me 2 usd. The same dish in the united states cost much more. So for them makingwhat they make is still pretty good pay. If we forget about China and just us the US as an example we can see what i mentioned. I use to live in Michigan the avg home cost 100-200k. Now I live in San Fransisco California area and the same sized homes would cost 400-500k minimum. So if we consider that factor alone, a living wage in Michigan would be MUCH less then in California.
  • Grime
    Grime Posts: 216
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    Why Does Apple Manufacture iPhone in Asia? Its simple, MONEY! I remember watching a documentary about Walmart, Wal*Mart the high cost of low price. Walmart's a very profitable corporation, Apple's worth more so I'm guessing they probably use similar business practices. To those that think Apple's phones would be more expensive if produced in the US, I say look at Apple's profits. I think I read an article here that said Apple makes earns 52% of the profits made in the handheld mobile industry. What that boils down to is that Apple sells their device for a lot more that what it cost to make, and I'm guessing a lot more than other competitors in the mobile industry. Assuming Apple's like most corporations I'm guessing the stock holders and the CEO's and other big wigs see most of the profit and the little guy, especially those in countries where cheap labor is common place, see very little. Here's a clip of how bussiness is done in China according to a Chinese factory worker at Walmart. Why Does Apple Manufacture iPhone in Asia? I'll let you decide. http://www.youtube.com/watch?v=5CzbT1hGwmM
  • Grime
    Grime Posts: 216
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    More links showing inhumane conditions that low paid Chinese workers deal with day to day in what many would describe as modern day sweatshops.http://www.youtube.com/watch?v=V3YFGixp9Jwhttp://www.youtube.com/watch?v=ddU8rV7_Qis&feature=relatedhttp://www.youtube.com/watch?v=DUtT2ZZP4EA&feature=related
  • jbfan
    jbfan Posts: 4
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    God created heaven and earth.. the rest made in China.
  • Chris
    Chris Posts: 736
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    Not sure how you got to the top 10% with spelling like that haha.
  • T
    T Posts: 71
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    Cost of living affects where you live and how much you make.
  • Kiwiholden
    Kiwiholden Posts: 189
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    So!!!!!!!!!!!!!!!!The whole world would fall apart if they made china a full first world country or even a second world country like the USA has become.No one would be able to afford anything and there wouldn't be enough people that have to work as hard as they all do to get as skilled as so many of them are.
  • Kiwiholden
    Kiwiholden Posts: 189
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    So!!!!!!!!!!!!!!!!The whole world would fall apart if they made china a full first world country or even a second world country like the USA has become.No one would be able to afford anything and there wouldn't be enough people that have to work as hard as they all do to get as skilled as so many of them are
  • Kiwiholden
    Kiwiholden Posts: 189
    via Wordpress
    So!!The whole world would fall apart if they made china a full first world country or even a second world country like the USA has become.No one would be able to afford anything and there wouldn't be enough people that have to work as hard as they all do to get as skilled as so many of them are