Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

This Article Explains Why Apple Makes iPhones In China And Why The U.S. Is Screwed
Business Insider ^ | 01/22/12 | Henry Blodget

Posted on 01/22/2012 4:49:53 AM PST by TigerLikesRooster

This Article Explains Why Apple Makes iPhones In China And Why The U.S. Is Screwed

Henry Blodget | Jan. 22, 2012, 5:30 AM | 3,191 |

The manufacturing processes of Apple and other electronics companies have come into sharp focus of late, with the revelation of more details about what life is like for the Chinese workers who make the world's gadgets.

When one reads about these working conditions--12-16 hour shifts, pay of ~$1 per hour or less, dormitories with 15 beds in 12x12 rooms--the obvious assumption is that it's all about money:

Greedy manufacturers want to make bigger profits, so they make their products in places with labor practices that would be illegal in America.

And money is certainly part of it.

But an amazing new article by Charles Duhigg and Keith Bradsher of the New York Times reveals that there's a lot more to it than that.

The article illustrates just how big a challenge the U.S. faces in trying stop the "hollowing out" process that has sent middle-class jobs overseas--and, with it, the extreme inequality that has developed in recent years.

The reason Apple makes iPhones and iPads in China, the article shows, is not just about money.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: apologiaforobama; apologists; apple; china; economy; foxconn; freetrade; jobs; obamanation; outsourcing
Navigation: use the links below to view more comments.
first previous 1-20 ... 61-8081-100101-120121-140 next last
To: TigerLikesRooster
When one reads about these working conditions--12-16 hour shifts, pay of ~$1 per hour or less, dormitories with 15 beds in 12x12 rooms--the obvious assumption is that it's all about money:

I would think different. The cost of living in China is not as high as in the US, and the workers are willing to accept less. All in all, this sounds like a pro-Union article.

101 posted on 01/22/2012 8:49:59 AM PST by Sarajevo (Any connection between your reality and mine is purely coincidental)
[ Post Reply | Private Reply | To 1 | View Replies]

To: central_va
You should really do some research, the only thing that the Chinese pay import duties on is on flat screen TV's. And it is a tiny little duty.

OMG! That's awful!! Can you prove it?

102 posted on 01/22/2012 9:03:03 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 36 | View Replies]

To: TigerLikesRooster

http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html?_r=1&ref=charlesduhigg&pagewanted=all

Must read is the original NYT article this is based on


103 posted on 01/22/2012 9:25:48 AM PST by dennisw (A nation of sheep breeds a government of Democrat wolves!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ctdonath2

Stop making sense!


104 posted on 01/22/2012 9:34:27 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 92 | View Replies]

To: HangThemHigh

“The real reasons Apple makes iPhones in China, therefore, are as follows:

-Most of the components of iPhones and iPads—the supply chain—are now manufactured in China, so assembling the phones half-a-world away would create huge logistical challenges. It would also reduce flexibility—the ability to switch easily from one component supplier or manufacturer to another.

-China’s factories are now far bigger and more nimble than those in the United States. They can hire (and fire) tens of thousands of workers practically overnight. Because so many of the workers live on-site, they can also press them into service at a moment’s notice. And they can change production practices and speeds extremely rapidly.

-China now has a far bigger supply of appropriately-qualified engineers than the U.S. does—folks with the technical skills necessary to build complex gadgets but not so credentialed that they cost too much.

-And, lastly, China’s workforce is much hungrier and more frugal than many of their counterparts in the United States.”


105 posted on 01/22/2012 9:41:12 AM PST by Pelham (Vultures for Romney. We pluck your carcass)
[ Post Reply | Private Reply | To 4 | View Replies]

To: central_va

They’re probably just afraid of the Red Chinese government nationalizing their factories, otherwise they would do it. They hide behind US law, to have Asians slaves make something an increasing number of Americans can’t afford anyway.


106 posted on 01/22/2012 11:13:59 AM PST by kearnyirish2
[ Post Reply | Private Reply | To 95 | View Replies]

To: Sarajevo

“When one reads about these working conditions—12-16 hour shifts, pay of ~$1 per hour or less, dormitories with 15 beds in 12x12 rooms—the obvious assumption is that it’s all about money”

Note that double shifts is way better than no work at all.
Note that $1/hr earns them 6-8 times world median income (i.e.: half of people on planet earn $2 or less _per_day_).
Note that $1/hr is augmented with presumably no commute costs, free room & board & utilities, and lots of other covered costs.
Note that dense quarters is normal for that culture, and better than mud huts or cardboard shacks.

Yeah it’s about money. Both employer and employee come out ahead in this deal.

Hence my prior post.


107 posted on 01/22/2012 11:22:52 AM PST by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
[ Post Reply | Private Reply | To 101 | View Replies]

To: ctdonath2

Komrade, you do an excellent job of defending communist slavery. No question you are the best. /sarc


108 posted on 01/22/2012 12:06:53 PM PST by central_va ( I won't be reconstructed and I do not give a damn.)
[ Post Reply | Private Reply | To 107 | View Replies]

To: kearnyirish2

Free traitors hate overpaid over benefited ( I agree with that BTW) union workers so much that they want communist slaves to build their crap for them instead.


109 posted on 01/22/2012 12:10:57 PM PST by central_va ( I won't be reconstructed and I do not give a damn.)
[ Post Reply | Private Reply | To 106 | View Replies]

To: Toddsterpatriot
As far as I can tell the import duty on television receivers and monitors is 3.5% from the 2012 harmonized schedule.
110 posted on 01/22/2012 12:42:07 PM PST by central_va ( I won't be reconstructed and I do not give a damn.)
[ Post Reply | Private Reply | To 102 | View Replies]

To: central_va

And that’s the only thing the Chinese pay tariffs on?


111 posted on 01/22/2012 1:18:44 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 110 | View Replies]

To: kearnyirish2

Like the oil investments in Venezuela that were seized?


112 posted on 01/22/2012 1:58:03 PM PST by listenhillary (Look your representatives in the eye and ask if they intend to pay off the debt. They will look away)
[ Post Reply | Private Reply | To 94 | View Replies]

To: Cringing Negativism Network
Actually, when you look at trade statistics (US Fed gov. statistics), the US will likely have exported $1.5 trillion in goods and about $2.1 trillion when services are added. Once the December 11 are in, I'll try and remember to send you the links.

China's numbers will run about $2.1 trillion as well, with their data more heavily weighted towards goods. And China's manufacturing workforce, is likely in the 100 million range whereas the US manufacturing workforce, under 15 million.

I'm going to advocate for you this time around :)

The danger of doing trade with China, isn't that so much manufacturing is done in China. America has a history of doing trade with poor low cost countries since the 1800's.

Where it becomes a problem to America, and other existing established Western developed countries, is that nowhere in the rules of trade, do we prevent a developing country from moving up the value chain. Luckily, for most of the established developed nations, most developing countries are either too corrupt or too inept to make such a transition up the value chain.

But since WWII, a series of Asian countries have found ways within the rules based system to move up the value chain. And this ain't so bad, since largest, i.e., Japan, with her population of 125 million, is less than half the size of the US. South Korea, along with the other "Four Tigers" of Hong Kong, Singapore, and Taiwan, represented even less and totaled less than 100 million people.

Along comes China with her 1.35 billion people, mostly poor, and still so. But she is doggedly determined to move up the value chain and into those very $1.5 trillion in US exports I mentioned earlier. And the reality is, as she moves up this value chain, you will actually get some of your wish of moving manufacturing back to the US. It is already happening right now. And will continue to happen in the coming years.

What will happen instead, is that other manufacturing sectors will begin to lose out to China. In the long run, America isn't going to lose out to China jobs wise. Factories throughout China are shutting down already creating political uncertainties for the current leadership.

But new factories are cropping up as well, much like what happened in Japan and South Korea in the past. Except on a grand scale.

The danger (if I could call it that, but again, I am advocating your argument...sort of), is not that China will continue to siphon jobs away from America, but that China will move up the value chain. China is slowly pricing herself out of alot of work. And again, some of the work is coming back to America.

The "danger" in doing trade with determined countries like China, is that it causes a shift in economic balance of power.

We already saw that with Japan. Before WWII, if someone would have said Japan will someday be larger economically than Britain, France let alone Germany, people would have laughed. Well, today, its true and as a world, we are used to that fact. Yet, Germany today has never been more prosperous. The difference today, of course, is Japan is no longer an economic minion compared to her European counter parts.

So, too, will America be more prosperous in say, 2050 than today. Providing a greater standard of living for 450 million people than the standard of living we have today for 310 million. The difference, of course, is the economic balance of power will have been altered significantly by then.

I suppose, one could make a case for the developed Western nations to come together, re-write the trade rules, to ban the trade of high value goods to and from existing developing countries, and to set up a committee to monitor such activities. Its an unlikely scenario, but I'm sure there are plenty of people who would be willing to try.

113 posted on 01/22/2012 2:32:22 PM PST by ponder life
[ Post Reply | Private Reply | To 72 | View Replies]

To: RegulatorCountry

http://en.wikipedia.org/wiki/Tariffs_in_United_States_history

http://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States

It is interesting how an increase in tariffs or some other trade restriction triggered each of the depressions in US history.

It is also interesting how the magnitude and frequency of recessions has gone down as tariff rates have dropped.


114 posted on 01/22/2012 3:55:13 PM PST by impimp
[ Post Reply | Private Reply | To 29 | View Replies]

To: central_va
What rude is saying is that domestic manufacturers of widget A will will raise prices if the imported widget A is tariffed. What rude forgets is that NOBODY makes widget A in the USA anymore!

That's why you only want to raise my taxes 5% at a time, right, ya' friggin' moron.

115 posted on 01/22/2012 7:41:05 PM PST by 1rudeboy
[ Post Reply | Private Reply | To 84 | View Replies]

To: TigerLikesRooster
Most of the components of iPhones and iPads — the supply chain — are now manufactured in China, so assembling the phones half-a-world away would create huge logistical challenges. It would also reduce flexibility — the ability to switch easily from one component supplier or manufacturer to another.

Back about 15-20 years ago, there was an article in the Wall Street Journal that predicted the assembly jobs would move to Asia once the majority of components were manufactured there. As I recall, I don't think they predicted it would be this fast.

Apple does have their iPad and iPhone CPUs manufactured here in the US, but those are such high-dollar items, they can afford to make them here and ship them to China.
116 posted on 01/22/2012 10:42:45 PM PST by af_vet_rr
[ Post Reply | Private Reply | To 1 | View Replies]

To: central_va
The national security implications of the off shoring of American manufacturing base are huge. No real conservative, regardless of being anti union or anti regulation, can see moving factories to China as good and healthy thing. Yes regulations, taxes and unions are bad things. But change those things here, or work for them. Don't sell out to China for Gods sake.

You hear about people getting upset over Chinese espionage, but very few of those people are upset over the fact that all of the major computer companies make their computers overseas.

The very same people never stop to think about the fact that all those computers that you see in government offices, the Pentagon, deployed in the field with the military, etc. are made in China. Dell, HP, Apple, doesn't matter, all made in China, in part or in whole. Very scary. We're to the point where the Chinese don't need to break into anything if they can come up with something cleverly inserted into the computers over there.
117 posted on 01/22/2012 10:46:06 PM PST by af_vet_rr
[ Post Reply | Private Reply | To 8 | View Replies]

To: Sarajevo
I would think different. The cost of living in China is not as high as in the US, and the workers are willing to accept less. All in all, this sounds like a pro-Union article.

The US suffers from ridiculous corporate taxes and obstacles in building new factories here in the US. It's ridiculous some of the hoops you have to jump through, and a company can sink millions into the planning stages only to have their permits rejected for ridiculous reasons.
118 posted on 01/22/2012 10:47:36 PM PST by af_vet_rr
[ Post Reply | Private Reply | To 101 | View Replies]

To: RegulatorCountry
I'm guessing you don't realize that the entire Federal government was originally funded by ... tariffs.

Alcohol and tobacco taxes also funded the Federale Gov't back then. This is why we have the BATF in the Treasury Department. To make sure those taxes are collected. Of course no income tax back then so those three taxes/tariffs are how the DC Gov't stayed afloat

119 posted on 01/22/2012 10:52:42 PM PST by dennisw (A nation of sheep breeds a government of Democrat wolves!)
[ Post Reply | Private Reply | To 22 | View Replies]

To: TigerLikesRooster
The author, Henry Blodget, agreed to a permanent ban from the securities industry and paid a $2 million fine plus a $2 million disgorgement.

For those of you in Rio Linda, that means he's a crook!

120 posted on 01/22/2012 10:53:22 PM PST by cynwoody
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 61-8081-100101-120121-140 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson