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Why the iPhone is made in China

Why the iPhone is made in China

There’s been a lot of talk about the New York Times article on why Iphones are made in china.

If you haven’t read it, you can find the article here.

I was reading comments on Slashdot and it was apparent that most of them didn’t read the article. They assumed it was all because of “cheap labor”.

According to the article, it has more to do with the type of expertise that is readily available there – lots of people with mid level technical knowledge (i.e. people with say 2 year degree equivalents) that tend to get poo-pooed here in the US.

One thing that I found interesting was the number of people who place the blame on Apple for making these choices even as Americans outsource every day when they purchase products that say clearly “Made in China”.

160,733 views 94 replies
Reply #26 Top

Quoting DsRaider, reply 24
Luckily for Stardock programmers will be relatively safe.

Are your sure ??? More and more business outsource their software development to India...

Reply #27 Top

Quoting JuniorCrooks, reply 17
That is fine with me LightStar if you will build them better. My comment had more to do with product quality then economy or logistics. I am not American and all i want is an iPhone I will not have to use as a paper weight.

I agree with you on that point for sure JC. :thumbsup:

Oh, and one other thing. After reading that article at SlashDot that Brad referenced I know one thing now, I will never buy another Apple product again, nor will I buy it from any company with that type of attitude. They basically accused American's of being lazy and not worth their time or effort to employ. >:(

Reply #28 Top

I was reading comments on Slashdot and it was apparent that most of them didn’t read the article. They assumed it was all because of “cheap labor”.

I worked for a company that represented the majority of major players in the aerospace community (Boeing, Rolls Royce, Pratt Whitney, Air Bus, Goodyear, G.E., etc.) Outsourcing has always been about money and how to reduce the cost of the end product.

I won't go into the those examples of how outsourcing has decimented our manufacturing base, impacted our economy from the worker's standpoint or the selling off of our tooling and technology.

and don't forget China's long term plans for world domination.

Hey there Raven, long time no hear.

Reply #29 Top

Quoting gmc2, reply 28

Hey there Raven, long time no hear.

Indeed my friend, too long.

A good statement as well. I've been of the opinion for quite a while that China will be the worlds next leading Super-Power.

Reply #30 Top

Because saintly Steve Jobs wanted to make a billion not half-billion.

American corporations have no allegiance to this country only the almighty dollar.

Reply #31 Top

There's a bill in congress right now, H.R.3596, the United States Call Center Worker and Consumer Protection Act, that would "require a publicly available a list of all employers that relocate a call center overseas and to make such companies ineligible for Federal grants or guaranteed loans and to require disclosure of the physical location of business agents engaging in customer service communications."

I think this is a good first step and bringing US jobs back within our own borders.  The official text is here, and you can e-mail your representatives from within the site:  http://www.opencongress.org/bill/112-h3596/text

Reply #32 Top

Quoting k10w3, reply 31
There's a bill in congress right now, H.R.3596, the United States Call Center Worker and Consumer Protection Act, that would "require a publicly available a list of all employers that relocate a call center overseas and to make such companies ineligible for Federal grants or guaranteed loans and to require disclosure of the physical location of business agents engaging in customer service communications."

I think this is a good first step and bringing US jobs back within our own borders.  The official text is here, and you can e-mail your representatives from within the site:  http://www.opencongress.org/bill/112-h3596/text[/quote]

 

Yes! Now that's a good start if it passes.

Reply #33 Top

That seems reasonable.

Reply #34 Top

Because saintly Steve Jobs wanted to make a billion not half-billion.

American corporations have no allegiance to this country only the almighty dollar.

Much like American consumers who think nothing about buying things made in China.

Reply #35 Top

Quoting k10w3, reply 31
There's a bill in congress right now, H.R.3596, the United States Call Center Worker and Consumer Protection Act, that would "require a publicly available a list of all employers that relocate a call center overseas and to make such companies ineligible for Federal grants or guaranteed loans and to require disclosure of the physical location of business agents engaging in customer service communications."

I think this is a good first step and bringing US jobs back within our own borders. The official text is here, and you can e-mail your representatives from within the site: http://www.opencongress.org/bill/112-h3596/text [/quote]

It's good to know that US politicians are still up to there normal great performance. See this short article. Like I said before globalization has hidden a lot of other trends. I was talking about manufacturing before but the same thing applies here as well. Those jobs are never coming back, even without outsourcing.

Reply #36 Top

Quoting myfist0, reply 1
WTF, now I have to login to see that article?

I guess I better stop quoting an article with a link to it as I will probably be extradited.

Well I found it and I like the "flexibility, diligence and industrial skills of foreign workers"

flexibility = 80 hr work week
diligence = no bathroom breaks 
industrial skills = they can work a screw gun 

All while living in a dorm no better than prison conditions in Canada. No wonder there is nets to keep people from jumping.


 

Rupert Murdoch thinks people will pay to read his news website.  That's why.

 

That said, the sweatshop conditons are still better then not being there.  Just like it was pre-union America. when folks who wanted the rights we took for granted were assaulted and killed, often with government approval.

 

 

Quoting Frogboy, reply 34



Because saintly Steve Jobs wanted to make a billion not half-billion.

American corporations have no allegiance to this country only the almighty dollar.


Much like American consumers who think nothing about buying things made in China.

 

The choice is a lot easier when you've got a lot of money, then when you don't.  Success is a combination of talent, hard work, and luck, you need all three to be successful.  Not everyone can be successful, and the current economic disparities make it harder for an individual to be reasonably successful.   It's hard to know how difficult success is when you've been successful, you often assume everyone can do it.

 

Wrote a book and got off-topic, so I'll cut out what I said.

Reply #37 Top

Quoting RavenX, reply 25
In the past every time there was so much eccess population there was a world war to take out a large chunk and then what-ever countries are left tend to go through a golden growth phase. I think the next WW will probably see US soil being invaded and since that's where I live I'm not exactly routing for that to happen.

This reflects a very poor understanding of Economics. If you kill off a lot of people then you have a lot less consumers and thus you need less workers to supply them with goods. The size and population of a country has nothing to do with it's employment level.

Reply #38 Top

Quoting Frogboy, reply 34
Much like American consumers who think nothing about buying things made in China.

Finally.

But in truth, there's an alternative?

Reply #39 Top

Quoting DrJBHL, reply 38
But in truth, there's an alternative?

Sure...you can always think nothing about buying things made in Europe ...;)

Reply #40 Top

Quoting DsRaider, reply 37
Quoting RavenX, reply 25In the past every time there was so much eccess population there was a world war to take out a large chunk and then what-ever countries are left tend to go through a golden growth phase. I think the next WW will probably see US soil being invaded and since that's where I live I'm not exactly routing for that to happen.

This reflects a very poor understanding of Economics. If you kill off a lot of people then you have a lot less consumers and thus you need less workers to supply them with goods. The size and population of a country has nothing to do with it's employment level.

I was kinda going off on a thing about wars there, not sure why really. I'd have to say when it comes to population though it does have a lot to do with economics. There are lots of countries out there with HUGE populations, much larger than the US, and it seems to me the larger the population the larger portion, and a disproportionate part as well, that is poor. No matter how "rich" a country might be, it will be guaranteed to have a large portion of the population that is poor. Look at Saudi Arabia, a country that brings in enough wealth that every one of it's citizens could be a millionaire, and yet they still have poor and homeless people begging in the streets. A large part of their population still live in buildings with no electricity or plumbing. Why? Because they aren't getting a share of oil wealth just because they live in that country.

Reply #41 Top
The only way is to put up trade barriers. The only thing that should be imported are things we can't get here naturally, like good coffee.lol The only trouble is with the pro corporate media, and government it will never happen they would cry socialism at the first mention. Sure you might pay more for things,but in the long run you will be boosting up your own income. The middle class cannot compete with someone half a world away being paid pennies to the dollar.
Reply #42 Top

Trade barriers are just holding off the inevitable.

Addressing income inequality is probably the fairest solution to maximize net social benefit.

Reply #43 Top

Quoting Alstein, reply 42
Trade barriers are just holding off the inevitable.

Addressing income inequality is probably the fairest solution to maximize net social benefit.

Indeed. It'll be a cold day in hell before that happens though.

Reply #44 Top

Quoting RavenX, reply 43

Quoting Alstein, reply 42Trade barriers are just holding off the inevitable.

Addressing income inequality is probably the fairest solution to maximize net social benefit.

Indeed. It'll be a cold day in hell before that happens though.

 

I'm thinking 10-20 years.  Just gotta have boomers start dying off.

Reply #45 Top

Quoting Alstein, reply 44
I'm thinking 10-20 years. Just gotta have boomers start dying off.

Oh, thanks...I'll just pop off this mortal coil, then and all your worries will be over.

/me contemplates executing rugrats.....

Dust off and nuke them from space....only way to be sure....

Yes, Ripley's a 'boomer' too....;p

Reply #46 Top

Quoting wbino, reply 41
The only way is to put up trade barriers.

Lets think about that and let's say other countries do the same. Hm, so what about exports ? Oh... ;-)

Reply #47 Top

Quoting Alstein, reply 42
Trade barriers are just holding off the inevitable.

Addressing income inequality is probably the fairest solution to maximize net social benefit.

I agree with the first part because the way trade is supposed to work is that it allows different countries to specialize at what they are good and trade for what they are bad at making, thus increasing the productivity and output of both countries. If America or any country were to descend in protectionism and stop trading it would start a trade war and the standard of living in that country would drop significantly. Protectionism = Bad. However personally I believe a country like China is something of a exception. It's not their low wages but the fact that they are a Communist country and they cheat in order maximize exports and minimize industrial imports. However I am going to stick to what I said earlier and predict that China is going to have some rough times in the future as some of their oh so wonderful command economy decisions bite them in the ass.

The second part of this is kinda vague. Wages are set in the market place due to supply and demand for labor. How exactly do you suggest income inequality be addressed?

Reply #48 Top

Quoting DsRaider, reply 47
the fact that they are a Communist country

That is what the government still wants all to believe. China is not more 'communist' at all. Even not in the bad meaning of it. Same as with 'democracy' in most western countries btw. Looking at latest incidents here in Germany doesn't make me feel like I have any influence on any decisions made in my name for my country at all... 10 years from now we will have massive riots here on the streets also. I am very sure about that.

Reply #49 Top

Quoting c242, reply 48


That is what the government still wants all to believe. China is not more 'communist' at all.

does it really matter what label you apply to any particular government? It's the actions of that, or any, government that defines them.

how about, the Chinese form of government does not lend it self to be a global partner in business or the human rights of it's citizens. but then again most governments don't to some degree anyhow.

Quoting Alstein, reply 44
I'm thinking 10-20 years. Just gotta have boomers start dying off.

thank you for the sincere wishs of long life and health (snot).

Reply #50 Top

Quoting DsRaider, reply 47

Quoting Alstein, reply 42Trade barriers are just holding off the inevitable.

Addressing income inequality is probably the fairest solution to maximize net social benefit.

I agree with the first part because the way trade is supposed to work is that it allows different countries to specialize at what they are good and trade for what they are bad at making, thus increasing the productivity and output of both countries. If America or any country were to descend in protectionism and stop trading it would start a trade war and the standard of living in that country would drop significantly. Protectionism = Bad. However personally I believe a country like China is something of a exception. It's not their low wages but the fact that they are a Communist country and they cheat in order maximize exports and minimize industrial imports. However I am going to stick to what I said earlier and predict that China is going to have some rough times in the future as some of their oh so wonderful command economy decisions bite them in the ass.

The second part of this is kinda vague. Wages are set in the market place due to supply and demand for labor. How exactly do you suggest income inequality be addressed?

 

In raw terms, wealth transfers to compensate for the ability of the rich to "rent-seek" in a way the poor cannot.  Close tax loopholes (I'd prefer to get rid of all deductions, but keep progressive tax rates, while setting a 10-15% corporate tax rate, with deductions allowed only for income above $30k/yr and below $100k/yr to incentivize middle-class wages.  

 
Ultimately, why does capitalism exist?  It exists to benefit society.  When it harms society, it needs to be tweaked. 

 

Also, a strong emphasis on consumer rights, especially when it comes to local monopolies like phone and internet service.  The Consumer Financial Protection Bureau Obama created would be great for this, though I'd give the spot to Clark Howard.   (who also suggested mostly the former idea)