December 23, 2015 2 min read 35 Comments
So why are Apple products such as the iPhone and iPad Assembled in China? The answer may surprise you!
Over the past 12 months Apple has sold 220,000,000 iPhones and, according to analysts, it would cost an additional $65 per iPhone to manufacture them in the United States. If Apple made these units in the USA vs. China it would have cost an additional $14 BILLION over the past 12 months. But, according to Apple's CEO, Tim Cook, making it cheaper in China doesn't matter...
So why does Apple choose to make their products in China? Well Tim Cook claims it is mostly
due to the lack of skilled workers and necessary infrastructure in America; we don't have the skill set and China does. But look at the numbers, you're telling me that $14.3 billion dollars doesn't matter?! I'd like to hear him explain to his shareholders that making it cheap doesn't matter. Making it cheap does matter to a corporation because they are no different than a machine. A machine has no country or people loyalty, it's focused on one thing, profit margin and maximizing shareholder value. At some point in time a workforce had to be trained to make Apple products. Hmmm...which workforce is Apple going to train to make their products? Would they choose the worker that has higher wages, healthcare, a safe place to work and other benefits? Or...would they choose to train workers in a country that get paid next to nothing and they don't have to worry about healthcare, benefits, and the EPA? To a machine, profits matter more than people and the environment and they will choose the option that provides the most financial benefits.
This is common across the board from the apparel industry, to the food industry and the tech industry. The longer I've been studying American manufacturing and this movement, I think the only way to truly change the dynamics is to support small to mid-level, privately held companies in the United States that actually care about workers and their country. I think the government needs to crack down on nations that turn their back to “modern-day slavery” as well. The other contributing factor is the consumer, the consumer can dictate so much change by their purchasing power, but oh how easily we are swayed by low prices, the power of marketing, habits, and human nature. The future is for you to decide from the items you buy to the people you vote for, choose wisely.
Made in the USA : 30 Day Journey