Apple CEO Tim Cook: 'It's Not True That the iPhone is Not Made in the United States'

[robbyx]

And why would it cost that? Oh that’s right, because of fair wages and labor practices that American workers have... and the lack of them in the foreign assembly plants that most Apple customers willingly and deliberately ignore.

A “fair” wage in China would be far less than a “fair” wage in the US. Foxconn could give everyone a 10x raise and it wouldn’t come close to what people doing the same work here would need to make ends meet, much less thrive.

How many Chinese made goods do you have in your house? We’re all complicit, every day. Yet Apple is repeatedly held to a completely different standard.

 

[brian3uk]

28 Nations giving up their autonomy to feed a hungry beast in Brussels is always mind boggling to me.

Getting close to off topic but, 50 states doing the same isn't mind boggling? The US is a nightmare collection of 50 different sets of rules about some stuff, and 1 set for other things and it is a mess.

 

[az431]

The funniest quote of this article:

"We have always made the parts here," Cook said. "People just look at where the final product is assembled."

One would think that "making" a product includes assembling the final product. Clearly we've had the definition wrong the entire time.

Lesson learned: Tim Cook says that final product assembly is not where a product is made.

The point is that the majority of the labor to build an iPhone is performed in the US.

 

[Rogifan]

Tim should have “Assembled in USA” versions of their products. New Balance does this for shoes.

At what price are fair labor principles and practices worth doing away with? I guess we’ll find out.

Why? More of Apple’s sales come from outside the United States. If someone lives in Europe or Canada or Australia do they care whether their iPhone is made in the USA or not?

 

[Piggie]

I'm puzzled?
So Tim is saying the Chips and Screens for iPhones are made in the USA ?

 

[Iconoclysm]

Yikes! Even IF the parts are indeed made in the USA, they are then being shipped to China on a boat, which is polluting the environment to be assembled. The assembled phones are then shipped back to the USA on a boat, which again is polluting the environment.

So, yes it being assembled in another country is just as big of a deal as if the parts were made in another country. Now, if the USA is the only place the parts can be manufactured, then make them here and ship them to the countries where the phones will be sold to be assembled. In other words, assemble phones in the USA that are going to be sold in the USA, assemble phones that are going to be sold in China in China, assemble phones that are going to be sold in Canada in Canada, etc. Doing this will help spur the local economy of each of these countries, which means Apple could end up selling more phones there.

iPhones are typically shipped by air to anywhere in the world not boat. There are parts in the iPhone from all over the world, Germany, Japan, Korea, China, etc. There is a reason that these things are assembled in China and that is that the industry there is bustling enough that you can craft new parts within just a few miles, make changes in just a few hours, and have new replacement parts available in one day. If you assembled in the US, you'd have to wait for those parts to be shipped - because the US doesn't have that sort of manufacturing muscle anymore. This isn't Apple's fault either, they were the last of the big hardware manufacturers to leave the US. HP, Dell, IBM, etc all moved to China long before while Apple tried to compete in the US.

I realize this is info you may not be aware of but that's why you shouldn't be making so many assumptions.

 

[az431]

Getting super tired of the half truths in the world today. Yeah sure some parts are made here, but most aren't. And y'all route your income through Ireland too so why's that? You wanna claim to be all SUPER USA, then bring your income home and pay your got dang taxes. And don't ask schools to pay $300 for ipads when they can't afford heat or to feed the kids. (because there isn't enough tax money for them)

Which parts aren't made in the US? Right, you don't know.

 

[KdParker]

Yikes! Even IF the parts are indeed made in the USA, they are then being shipped to China on a boat, which is polluting the environment to be assembled. The assembled phones are then shipped back to the USA on a boat, which again is polluting the environment.

So, yes it being assembled in another country is just as big of a deal as if the parts were made in another country. Now, if the USA is the only place the parts can be manufactured, then make them here and ship them to the countries where the phones will be sold to be assembled. In other words, assemble phones in the USA that are going to be sold in the USA, assemble phones that are going to be sold in China in China, assemble phones that are going to be sold in Canada in Canada, etc. Doing this will help spur the local economy of each of these countries, which means Apple could end up selling more phones there.

Yes....you nailed it. I wonder what costs would make that more expensive?

new assembly plants in each country,
new tax laws to follow in each country phones are sold,
new labor laws in each county where phone sold,
etc....

 

[Rogifan]

It's an AMERICAN COMPANY.

For cripes sakes. SMH.

On the last earnings call Apple reported that 39.8% of revenues come from North and South America. Apple may be headquartered here but 60% of its revenues come from other countries. So Apple really is a global company.

 

[NoNothing]

Getting super tired of the half truths in the world today. Yeah sure some parts are made here, but most aren't. And y'all route your income through Ireland too so why's that? You wanna claim to be all SUPER USA, then bring your income home and pay your got dang taxes. And don't ask schools to pay $300 for ipads when they can't afford heat or to feed the kids. (because there isn't enough tax money for them)

I don't know where your false claims start and end they are so think in 4 lines.

 

[ipponrg]

Which parts aren't made in the US? Right, you don't know.

Here is your supplier list: https://images.apple.com/supplier-responsibility/pdf/Apple-Supplier-List.pdf

And a link to some of the iPhone suppliers: https://www.bloomberg.com/news/arti...-suppliers-powering-apple-s-flagship-iphone-x

 

[brian3uk]

Which parts aren't made in the US? Right, you don't know.

The display, the processor, the RAM, the flash memory... you know like the major components. But you don't care.

 

[Iconoclysm]

Which parts aren't made in the US? Right, you don't know.

Yes, we do know what parts aren't made in the US. Why would you think otherwise? It's completely clear...

 

[KdParker]

Would they be able to offer them in similar prices then though?

nope...I seriously doubt that.

 

[brian3uk]

I don't know where your false claims start and end they are so think in 4 lines.

Well when you have time to figure it out, do let me know.

 

[JPack]

Americans seem to think they have everything it takes to produce iPhones in the US. Well surprise: they don't. China has become the factory of the world and they offer far more than just cheap labor. They have all the know-how, automated factories, weak environmental and social regulations, ... And by producing everything in China we're not only handing them over our cash, but also our knowledge. In return, China is purchasing Africa because that's where the real cheap labor and natural resources are.

This whole Trump-US-narative is so behind the times and out of touch with reality, it's not funny anymore. We live in a globalised world with multinationals having more money and power than governments. They dictate the agenda and the only thing that counts is profits. Because we, the consumer, ask cheap things.

Meanwhile, corporations pay almost no taxes, and decide in a wink to move a plant to the other side of the world. And countries are forced to compete by offering even lower taxes and weaker regulations.

Maybe, I'm being naive but at least Apple is one of the few corporations that tries to do the right thing in many regards and I feel it's more than window dressing. They stand up for equal rights, invest in green energy and have a roadmap to avoid some chemicals. But make no mistake, the business there in is very polluting and as long as there's gold and cobalt among other things in their devices, their products will be a social and environmental disaster. Just like the products of the competition. But at least they try to minimise some effects.

But whether the final assembly is done in China or the US doesn't make any difference.

So in other words Tim Cook is claiming Americans are incapable of and lack the intelligence to or skills to assemble their devices, and the Chinese do... so not only is he stupidly hypocritical, and full of it when everyone know it’s all about lower costs and profits, he also insults Americans.

What an impressive comment he’s made there...

Denial is probably one the biggest problems facing Americans. Once Americans admit they don't have the skills to do sophisticated manufacturing, it will be easier fund education and encourage training for such skills.

In the 1970s and 1980s, the U.S. learned from Japan on how to significantly improve vehicle manufacturing. The same thing needs to happen today, except there's heavy denial and there is virtually zero electronics manufacturing base in the U.S.

Look at all the electronics design and manufacturing powerhouses in the world: Foxconn, Pegatron, Quanta, Compal, Wingtech, Longcheer, etc. Out of the world's 10 largest EV companies, 6 of them are in China. If you look at military technology, China and the U.S. are the only countries in the world manufacturing and operating stealth fighters.

If labor costs were the only issue, manufacturing would be occurring in India, Ethiopia, and Pakistan. There's a skills issue at hand and most people in America still don't realize it.

 

[laurim]

Yeah, Cook the hypocrite, should be his full name, just like any other CEO, no matter what BS falls out if his mouth, it’s all aimed to increase sales, profits and shares before ANYTHING else, but shamefully some on here will aggressively defend that.
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So in other words Tim Cook is claiming Americans are incapable of and lack the intelligence to or skills to assemble their devices, and the Chinese do... so not only is he stupidly hypocritical, and full of it when everyone know it’s all about lower costs and profits, he also insults Americans.

What an impressive comment he’s made there...

Wow, what a load of immature cluelessness. It's a fact that there isn't a pool of Americans who are already trained in the precision work needed to make advanced electronics. Cook never said Americans couldn't do the work. He said the pool of ALREADY TRAINED people don't exist in America. It would take years to create that pool so why don't you turn your anger towards companies like FoxConn because THAT'S the company that needs to create that pool of American workers skilled in that specific kind of manufacturing. I'm not defending what Cook said because I'm an Apple fan. It's because I'm old enough to know how business works and that your statement was nonsense.
[doublepost=1522265325][/doublepost]

The funniest quote of this article:

"We have always made the parts here," Cook said. "People just look at where the final product is assembled."

One would think that "making" a product includes assembling the final product. Clearly we've had the definition wrong the entire time.

Lesson learned: Tim Cook says that final product assembly is not where a product is made.

Maybe you prefer to buy from companies who love to put "Made in America" on their products where the only thing actually Made in America is slapping the knobs on before it goes in the box. I prefer all the jobs created in multiple American companies across multiple states making components.

 

[apolloa]

Wow, what a load of immature cluelessness. It's a fact that there isn't a pool of Americans who are already trained in the precision work needed to make advanced electronics. Cook never said Americans couldn't do the work. He said the pool of ALREADY TRAINED people don't exist in America. It would take years to create that pool so why don't you turn your anger towards companies like FoxConn because THAT'S the company that needs to create that pool of American workers skilled in that specific kind of manufacturing. I'm not defending what Cook said because I'm an Apple fan. It's because I'm old enough to know how business works and that your statement was nonsense.

Facts, not clueless immaturity. I bet your an AAPL share holder. Can’t see why else you agree with him belittling Americans, it doesn’t take years to teach someone how to put an iPhone together.

 

[Defthand]

You wanna claim to be all SUPER USA, then bring your income home and pay your got dang taxes. And don't ask schools to pay $300 for ipads when they can't afford heat or to feed the kids. (because there isn't enough tax money for them)

Brian3UK makes a good point. Apple exploits every shelter it can to avoid paying taxes in America. I don’t blame Apple. Our government isn’t fiscally disciplined. However, it’s outrageous for Apple to avoid taxation and ask U.S. taxpayers to buy Apple’s products for schools, further perpetuating lavish government spending.

 

[laurim]

The display, the processor, the RAM, the flash memory... you know like the major components. But you don't care.

If you read the article, you would see the glass display

On the last earnings call Apple reported that 39.8% of revenues come from North and South America. Apple may be headquartered here but 60% of its revenues come from other countries. So Apple really is a global company.

Any large company gets revenues from everywhere. Thats a totally separate thing. Apple is an America-based company. Like P&G is an American company. It has manufacturing and research parts globally, sells products globally, and it is an American company.

 

[NoNothing]

The display, the processor, the RAM, the flash memory... you know like the major components. But you don't care.

Some of the processors and RAM are made in Texas. But I don't think you care about facts.

 

[RickInHouston]

An iPhone assembled in the U.S. would cost $2K instead of $1K. How many vocal critics would really pay that difference?

Sounds like most on this thread would. Gotta have the latest and greatest.

 

[laurim]

Facts, not clueless immaturity. I bet your an AAPL share holder. Can’t see why else you agree with him belittling Americans, it doesn’t take years to teach someone how to put an iPhone together.

Yes, I do own Apple stock, because I'm smart and want a decent retirement nest egg. And I can see he is in no way belittling Americans. How can you say he's belittling Americans by simply saying there are too few Americans skilled in the particular manufacturing needed? THAT'S a fact. Just because you don't like a fact doesn't make it untrue.

 

[Zaft]

Why is only Apple on the spotlight for this? Almost all OEMs assemble their products in China.

 

[fairuz]

But the company won't absorb those higher costs.

With the profit margins Apple has and how nonessential their products are, yeah they will. Not that I agree with protectionism.