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Yes, We Can Make iPhones in America


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2012 Oct 1, 7:11am   5,752 views  18 comments

by Politicofact   ➕follow (0)   💰tip   ignore  

http://www.forbes.com/sites/baizhuchen/2012/09/07/yes-we-canmake-iphones-in-america/

I argued that the current cost structure does not make any sense to assemble iPhones in America. I argued that we would be better off focusing on designing iPhones but letting the Chinese handle the assembly. The article has generated quite a few responses and heated debates. After some periods of soul searching, I have come to realize that I need to revise my original conclusion.

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2   Raw   2012 Oct 1, 7:54am  

Yes, we can make iphones in America, but why should we when China can make them cheaper. If other phone companies make their phones in China, they will have a competitive edge, and eventually Apple would go out of business.
Let Apple make the right business decisions, make lots of profits, and pay lots of taxes.

3   Shaman   2012 Oct 1, 8:03am  

It's not like apple is declining to show a profit on iPhones. I understand that the margin is considerable. That's based on a solid product and the company's reputation for quality high tech products. People can go cheaper but women don't need $1500 Coach handbags either. They buy what they perceive is best and pay the required price. If its no longer best, then you have problems. Manufacturing the iPhone in china wasn't necessary, but just enhanced profits a bit.

4   Raw   2012 Oct 1, 8:28am  

Quigley says

It's not like apple is declining to show a profit on iPhones. I understand that the margin is considerable. That's based on a solid product and the company's reputation for quality high tech products. People can go cheaper but women don't need $1500 Coach handbags either. They buy what they perceive is best and pay the required price. If its no longer best, then you have problems. Manufacturing the iPhone in china wasn't necessary, but just enhanced profits a bit.

Apple has high profit margins in part due to China, and also due it's technological advantage. That technological advantage can evaporate in this world. Look what happened to Rimm.
If a company is to dominate or even survive in this dog eat dog world it must use every tool at it's disposal, including cheap Chinese labor.

5   Politicofact   2012 Oct 1, 11:27am  

I don't know, Apple could make a more expensive product here!

It's not rocket science. its capitalism and simple supply demand.

Make the more expensive units and high end stuff here.

If not the iPhone, why not an integrated smart Ios tv? 55" entry level.

6   Politicofact   2012 Oct 1, 11:29am  

If anything the rarity of producing an Apple product in the USA will make it more expensive and more desirable.

7   lostand confused   2012 Oct 1, 11:51am  

Apple and any company should be allowed to make any product anywhere in the world.

What our govt can do is step in tax imports. The margin is getting less and less-that even 20-30% tax can make a huge difference. After all, the Chinese manipulate their currency, so why can't we tax imports?

8   Politicofact   2012 Oct 1, 11:54am  

Apple is not any company.

http://www.cultofmac.com/105623/amazing-apples-cash-on-hand-is-more-than-the-gdp-of-almost-23rds-of-the-worlds-countries/

Amazing! Apple’s Cash On Hand Is More Than The GDP Of Almost 2/3rds Of The World’s Countries

This is not about margins or profit.

9   Politicofact   2012 Oct 1, 11:55am  

http://pixobebo.com/2012/08/with-120-billion-in-the-bank-a-high-flying-stock-a-few-hundred-million-customers-and-apple-still-gets-no-respect/

With $120 Billion In The Bank, A High Flying Stock, A Few Hundred Million Customers, And Apple Still Gets No Respect

10   Politicofact   2012 Oct 1, 11:56am  

I'm no Apple fan. Apple is no ordinary company.

11   Shaman   2012 Oct 2, 5:08am  

How many people would have become apple customers or become even more loyal if Apple made the harder decision to become a domestic manufacturer. It didn't have to be California, we all know the regulatory environment here is ridiculous. But if yokels in Alabama made iPhones and iPads, people nationwide would think more highly of apple. Instead they hire Foxconn to create the iPhones in death trap environments that kill underpaid Chinese by the score. Dirt ball move IMHO. Plus, anything you have the Chinese make will be copied in 3 months and sold under a new brand. They sold their birthright of tech advantage for a bowl of porridge.
Mark my words: Apple has one or two more years of dominance left and then it will decline just like in the 90s. Jobs saved it with his adherence to customer satisfaction and commitment to innovation and excellence. But it will squander all goodwill with only a few more years of the latest hooliganism.

12   Politicofact   2012 Oct 2, 5:56am  

Just think of what Apple could accomplish if it learns to manufacturer in California. If it learns how to work with government to get manufacturing going in a state like CA! It would be a great place to ship to the East???

So much to gain.

13   Politicofact   2012 Oct 2, 9:35am  

http://www.arnnet.com.au/article/438007/lenovo_opens_first_us_manufacturing_plant_pcs_tablets/

Lenovo opens first US manufacturing plant for PCs, tablets
Lenovo has opened its first factory in North Carolina

14   MisdemeanorRebel   2012 Oct 3, 1:33am  

A combination of rising labor and infrastructure costs will bring manufacturing home.

Just a little 10-15% tariff - historically minimal by the way - would make it happen soon.

And, we'll get the 10x job multiplier that industrial jobs bring.

This is great news.

15   HEY YOU   2012 Oct 3, 4:11pm  

I'm sure purchasing the latest electronics from any company is going to save the U.S. economy.

16   Dan8267   2012 Oct 3, 5:41pm  

Politicofact says

Yes, We Can Make iPhones in America

I'm not sure we can. I heard the iPhone uses an advanced new patented technology called rounded corners. It would take some kind of mad scientist to understand that advance technology. Maybe it came from aliens. How could any human being think of something so innovative?

17   thomaswong.1986   2012 Oct 10, 10:44am  

Raw says

If other phone companies make their phones in China, they will have a competitive edge, and eventually Apple would go out of business.

no not really.. what competitve about chinese products if they are being programed to be hacked by a foreign power... no not your Iphone .. but the whole national telecom system ...

So pay a little more for US made products, but at lease you have assurance it wont compromise your national security and the whole economy.

Huawei and ZTE pose security threat, warns US panel
By: Information Daily Staff Writer
Published: Thursday, October 11, 2012 - 01:00 GMT
A congressional panel has warned that Chinese telecom firms Huawei and ZTE pose a security threat to the US after an investigation into the two companies.

The House Permanent Select Committee on Intelligence initiated the investigation in November 2011 to analyse the risks posed to US National Security by Chinese telecom firms, Huawei and ZTE as they expand into the US market.

The comittee hoped to review to what extent the companies are influenced by the state, or provide Chinese intelligence services access to telecommunication networks. The opportunity exists for further economic and foreign espionage by a foreign nation-state already known to be a major perpetrator of cyber espionage.

The comittee was less than impressed with the cooperation of the two companies during the investigation.

"Despite hours of interviews, extensive and repeated document requests, a review of open-source information, and an open hearing with witnesses from both companies, the Committee remains unsatisfied with the level of cooperation and candor provided by each company."

Stoping short of calling for a boycott of the firms' mobile phone products, the report was highly critical of the two companies.

"China has the means, opportunity and motive to use telecommunications companies for malicious purposes," the report says.

18   MisdemeanorRebel   2012 Oct 11, 1:28am  

Dan8267 says

Politicofact says

Yes, We Can Make iPhones in America

I'm not sure we can. I heard the iPhone uses an advanced new patented technology called rounded corners. It would take some kind of mad scientist to understand that advance technology. Maybe it came from aliens. How could any human being think of something so innovative?

It's amazing how different patent standards apply in different industries.

Imagine in car makers sued each other over rounded car body corners. Or door handle designs. Or where the trunk button was.

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