Nightline's Look into Apple's Foxconn Factories

[TallManNY]

People balk at the wage of 1.27/hour, but they forget that it is cheaper to purchase things too. When is the last time you paid 0.70 for a full lunch?

That's 55% of one hours wage for a meal. To put that in North American perspective, its the same as someone who earns $13/hour paying $7.15 for their lunch.

Suddenly doesn't seem so shocking now, does it?

Your point is good, but you misread the reported wage. The reported wage was 1.78 per hour. So the meal is 39% of an hourly wage. So it is really like a worker here who earns $18.33 per hour and pays $7.15 for their lunch. All this just further supports your point though.

Basically, your average American high school graduate probably is less secure in their ability to pay for food and housing and save for retirement than these Foxconn workers.

 

[Chupa Chupa]

I think it's truly a poor decision to outsource labor in America to other countries because it saves money. Doesn't matter if it costs one cent to produce an iPhone over there, it's taking money flow away from here, adding to our economic struggles, and greatly improving their economy. I'm not referring to just Apple, there are plenty, plenty of other big companies doing it as well. As time goes on and on, you'll see Americans regretting trying to save a few bucks and outsourcing. Watch.

I'd gladly pay 20%-30% more for my Apple products if they were produced here. Overall it's spending more now to save a lot later...

Well, as high minded as that sentiment is, it's not true. All those U.S. Apple retail stores employ U.S. workers. They receive shipments that are brought to them by drivers for FedEx and UPS after their trucks are packed by station packers after they receive them once offloaded by workers at U.S. airports. The chain goes on and on down the line. Multiply for all the other stores that sell Apple products.

Now take a $499 Apple iPad and bump it up 20% as you are willing to pay. It's now $599 for a low end iPad. A simple supply and demand chart suggests Apple would likely not sell nearly as many at $599 as $499, and same goes up and down Apple's product line. That means Apple wouldn't be able to support as many retails stores -- fewer employees needed, fewer drivers needed to fewer locations and down the line. So when you look at money flow to the economy, don't just look at one single bullet point. The U.S. (and Apple) economy is much more dynamic and complex than that.

 

[motorazr]

Honestly I think the report was pretty well done... Granted yes, it doesn't answer everything, but I thought it was really important they went out to the villages and showed the families of laborers.

I recall seeing back in 2006(?) a discovery china series; and if memory serves me correctly, people out in the villages were starving and could not afford anything if they didn't manage to have a younger family member get a job somewhere in the city..

Here's hoping things keep improving for foxxconn & apple workers... but for now I think I'll keep appreciating my hand-made goods

 

[noisycats]

I think it's truly a poor decision to outsource labor in America to other countries because it saves money. Doesn't matter if it costs one cent to produce an iPhone over there, it's taking money flow away from here, adding to our economic struggles, and greatly improving their economy. I'm not referring to just Apple, there are plenty, plenty of other big companies doing it as well. As time goes on and on, you'll see Americans regretting trying to save a few bucks and outsourcing. Watch.

I'd gladly pay 20%-30% more for my Apple products if they were produced here. Overall it's spending more now to save a lot later...

The issue is not just if you are willing to pay 20% for your Apple products, but are you willing to pay 20% more for all your products? In effect, are you willing to take a 20% reduction in your pay to return all those jobs to the US?

My parents rail against "all those jobs going overseas", but they "just love our WallyWorld" (WalMart). Don't people get it? You can't have both...you can't have jobs in this country and continue to shop at WalMart.

 

[Rocko1]

Put all US welfare recipients on a boat immediately, time they earned their way.

 

[MacBookProzak]

Now that we have all seen this report there are alot of people who are very concerned about the manufacturing process that Apple uses. The question I ponder is: How many people who feel that Apple has taken advantage of these people -AND are current Apple product users of and iPad, iPhone, MacAir, MacBookPro, iMac, etc will ACTUALLY put their views and beliefs into practice and STOP using these devices today? Inquiring minds would like to know.

 

[Rocko1]

Now that we have all seen this report there are alot of people who are very concerned about the manufacturing process that Apple uses. The question I ponder is: How many people who feel that Apple has taken advantage of these people -AND are current Apple product users of and iPad, iPhone, MacAir, MacBookPro, iMac, etc will ACTUALLY put their views and beliefs into practice and STOP using these devices today? Inquiring minds would like to know.

I thought the people have it good in their context. I feel better about buying/using Apple products having watched the special.

 

[macmagician]

Am I the only one who thinks this is so wrong. They could easily pay way more to the workers. The reason why they don't build in the U.S. is so they exploit the poor economic situation of these people. So if you take the iphone 4, cost of parts was estimated at 188 dollars, they sold for 500-600 dollars when launched. How dare they pay these hard working people scraps then turn around mark up the product hundreds of percents for americans to buy. I've heard about how apple is the most profitable company around. They profit off the backs of the poor. They should be ashamed. I will definitely not buy anymore apple products now.

 

[Rocko1]

Am I the only one who thinks this is so wrong. They could easily pay way more to the workers. The reason why they don't build in the U.S. is so they exploit the poor economic situation of these people. So if you take the iphone 4, cost of parts was estimated at 188 dollars, they sold for 500-600 dollars when launched. How dare they pay these hard working people scraps then turn around mark up the product hundreds of percents for americans to buy. I've heard about how apple is the most profitable company around. They profit off the backs of the poor. They should be ashamed. I will definitely not buy anymore apple products now.

Yes you are. They are not being forced to work there. They have other choices. They may not be the same choices as here, but it's a communist country. Are you upset there are farmers in Mexico that farm your bananas at below OUR USA minimum wage?

 

[notjustjay]

Am I the only one who thinks this is so wrong. They could easily pay way more to the workers. [ snip ] How dare they pay these hard working people scraps then turn around mark up the product hundreds of percents for americans to buy.

Have you even read any of the 12 pages of discussion in this thread, or did you just hit "Reply" without thinking?

Hint: look at the posts discussing the costs of living in North America compared to China (or even Poland, an example another poster used).

 

[weaverra]

How does it take an odd number of hands to make an iPad?

Who's the poor bastard with only one arm?

It's 325 sets of hands. Actually 650 hands.

 

[noisycats]

Am I the only one who thinks this is so wrong. They could easily pay way more to the workers. The reason why they don't build in the U.S. is so they exploit the poor economic situation of these people. So if you take the iphone 4, cost of parts was estimated at 188 dollars, they sold for 500-600 dollars when launched. How dare they pay these hard working people scraps then turn around mark up the product hundreds of percents for americans to buy. I've heard about how apple is the most profitable company around. They profit off the backs of the poor. They should be ashamed. I will definitely not buy anymore apple products now.

I actually commend you for not just ranting about something you know little of, but backing it up with action.

Oh, don't forget to boycot every other Chinese made product in your household as well because the working conditions are possibly the same, likely worse.

 

[TallManNY]

I would argue that comparatively speaking - that's like someone in the US working insane hours, making a ton of money and being able to retire early and "comfortably"

That doesn't mean the hours and work doesn't suck. Nor does it make for a healthy and balanced life "until" retirement perhaps.

Personal choice, of course. Everyone can choose what aspects (or Quality) of life are most important to them.

Right but there are literally hundreds of millions of Chinese peasants working on farms who can never earn enough money to retire comfortably. And they are working the same long days through their life. Looking beyond China, there are probably billions of poor folks who would love to get a job that insures plenty of food, a roof over their head and their family, and a comfortably retirement in their old age.

 

[griz]

And this is why companies like Apple outsource to China. There is no way you would be able to get Americans to work 12 hours on an assembly line making $1.78 per hour. Imagine what that iPhone would cost if it were made in Detroit by union workers!

Apple should give people that choice. I'm betting you would find people willing to buy them.

 

[gnasher729]

I'm guessing that show about the UK car industry was a few years back? Things have changed and improved a lot now, it's actually growing and is one of the most efficient work forces in the industry. There is a massive Honda factory and BMW assembly plant where I live. Can't remember the last time there was industrial action, even when they moved to a reduced hours week a couple of years back it was done via negotiation and agreement with the union.

The show was quite recent, last year or so - about the self destruction of the UK car industry in the 1980's.

 

[jackc]

Am I the only one who thinks this is so wrong. They could easily pay way more to the workers. The reason why they don't build in the U.S. is so they exploit the poor economic situation of these people. So if you take the iphone 4, cost of parts was estimated at 188 dollars, they sold for 500-600 dollars when launched. How dare they pay these hard working people scraps then turn around mark up the product hundreds of percents for americans to buy. I've heard about how apple is the most profitable company around. They profit off the backs of the poor. They should be ashamed. I will definitely not buy anymore apple products now.

I also commend your willingness to act, if you really do it. Most people are just flapping their mouths, or their keyboards.

But this is a case of good intentions having unintended consequences. Just like people who boycott agricultural products because of poorly paid workers, you end up hurting those workers by reducing demand. Their next best opportunities are worse, which is why they are paid a low wage.

 

[tomhfh]

Outside U.S.

Anyone know of anywhere to watch it in the UK?

 

[ABernardoJr]

Am I the only one who thinks this is so wrong. They could easily pay way more to the workers. The reason why they don't build in the U.S. is so they exploit the poor economic situation of these people. So if you take the iphone 4, cost of parts was estimated at 188 dollars, they sold for 500-600 dollars when launched. How dare they pay these hard working people scraps then turn around mark up the product hundreds of percents for americans to buy. I've heard about how apple is the most profitable company around. They profit off the backs of the poor. They should be ashamed. I will definitely not buy anymore apple products now.

I don't understand the people trying to be "righteous" to make Apple look like more of the bad guy than it is. It's been stated many times that, first of all, China's labor force and wage scales in addition to the costs of living over there are drastically different than ours, so it's ridiculous to just look at that alone and make any kind of assessment on the big picture. Yes, the conditions may not be the nicest, but context is very important, and Apple is trying to make things better. Secondly, it's also been suggested that Foxconn could pay its employees more, not necessarily Apple, and yet Apple is taking all the blame for their low wages. And lastly, consider the context of the situation in more ways: people actually line up for the opportunity to work at Foxconn, and Apple isn't the only company in the world that works with Foxconn. They're just the biggest so they get an unfair portion of the blame, and when they try to make things better they have the skeptics questioning their motives.

It doesn't make you better than anyone who will still buy Apple products just because you think you're doing something noble by withholding your money from the economy. Very little logic from the people trying to get on some high horse thinking they're wiser for boycotting products for problems they imagine and magnify in their own heads. As another poster said, if you boycott Apple products I would imagine you would find the same need to boycott any other made-in-China products you have.

 

[jackc]

Apple should give people that choice. I'm betting you would find people willing to buy them.

A few might, a lot more wouldn't buy them.

You have the choice to donate the difference to U.S. workers, some of the richest in the world.

 

[yourtoys7]

People try to apply US point of view on everything, everywhere. You give them info., they want more, you grant them access, they want more, it never stops, apple do what you like and think is fair.
If you compare what people make here at min. wage and what everything costs vs. working for foxconn, its not that bad. If you really don't like it, you can leave any time and work somewhere else , you still have that choice I believe.

 

[MacBookProzak]

I will definitely not buy anymore apple products now.

Will this vitriolic of not buying anymore Apple products also extend to stop using any current Apple products you own as well?

 

[jhende7]

How come all other reports point to the opposite direction? Isn't there enough good stories out there to report on without taking this chance?

Should we just trust them and forget about it? IMO, it's way too fishy.

cheers!

Oh, you poor naive thing.

Because an article titled "The Human Cost of an iPad" sells a lot more copies than "Foxconn pays Chinese workers the average wage" for the NYtimes.

 

[smallnshort247]

After watching this, it makes me think how ungrateful I am for the job I have.

 

[jhende7]

Will this vitriolic of not buying anymore Apple products also extend to stop using any current Apple products you own as well?

Not to mention he will have to boycott all other electronics, his car, food, and clothes etc.

Not going to be a great life to try and prove a point.

 

[Chupa Chupa]

Am I the only one who thinks this is so wrong. They could easily pay way more to the workers. The reason why they don't build in the U.S. is so they exploit the poor economic situation of these people. So if you take the iphone 4, cost of parts was estimated at 188 dollars, they sold for 500-600 dollars when launched. How dare they pay these hard working people scraps then turn around mark up the product hundreds of percents for americans to buy. I've heard about how apple is the most profitable company around. They profit off the backs of the poor. They should be ashamed. I will definitely not buy anymore apple products now.

Did it ever occur to you that the wages paid are the ones the Chinese gov't wants paid? [hint: wages are well within respective provinces minimum wage laws]. That's what happens in a planned economy. When their is an artificial ceiling on one's personal economic growth potential it's easier to control the masses. Do people not understand China's economic system? So many posts seem to assume they have an open economy. China has a planned economy with a market component. Big difference.