It wasn't that long ago that most things were made in the US. Prices didn't plummet when manufacturing went overseas. Either labor in China isn't that much cheaper, or profit margins went through the roof. And anyway, workers don't riot over nothing.
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Riot Shuts Down Foxconn Plant, Impact on iPhone 5 Production Unclear
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Am I a bad person for my first thoughts in looking at the pictures were that maybe folks were just following their turn-by-turn directions using the new Maps.app?
This is sad. I would recommend reading the attached article on the journalist who snuck in as a worker. It paints a picture as to how hopeless their situation is.
True. Apparently it's mostly car parts made at that factory. If it's just the back plate, production may be able to be shifted elsewhere. However, given that the iPhone appears to be supply constrained, even a minor delay could have some impact.
Or they could take a hit on their 60% margins and have a more respectable 35% margin.
For it to even be imaginable, it's going to involve a scenario that will involve a lot of compromises. Here's how I see it going down:
*Apple gets a hell of a tax break at the state and federal levels where its factory is built.
*iPhone components would continue to be made in other countries for the forseeable future.
*The price of each phone would have to go up by at least $50, and possibly $100. More is not unexpected.
*Workers would have to be non-union, and compensation would have to be adequate but not exceptional.
*Carrier subsidies continue, increasing if possible.
Put all that together, and MAYBE you could see iPhones made in the USA. It won't do wonders for Apple's stock value, or give us cheaper phones, and even if it brings in jobs, they won't be *good* jobs... but if everyone were to agree to make the best of the situation...
You'd think, though, with all the competition for smartphones that margins would be driven down near the minimum. I wish I knew more about the situation...
Right, it would not be much more: a smaller drop in the bucket. But see the advantages on the big picture. If you create 100,000 American jobs for the phone assembly, there will be few more hundres of thousand jobs creates to support the whole infrastructure: parts, transportation, utilities, housing, shopping, food, services, entertainment. Apple could probably create directly and indirectly a million new jobs in US.
Now, think about it, this million will be able to by more even Apple products. Result: Apple makes profit, workers earn income, US get tax revenue. Everybody wins.
Never should have given the raises. Now it's more, more, more.
Where is HTC, Motorola, and others? Their workers still make $1.00 per day?
Rumor is that initial production is slow due to supply chain constraints, and they are not getting in the hours. Therefore not as much $$$=Riots.
Time to start getting out of China Steve. Maybe it's too late?
Where is HTC, Motorola, and others? Their workers still make $1.00 per day?
Rumor is that initial production is slow due to supply chain constraints, and they are not getting in the hours. Therefore not as much $$$=Riots.
Time to start getting out of China Steve. Maybe it's too late?
OK. First we'll need to find 25,000 mechanical engineers to retool factories every time there is a new product. Then we'll need to build out infrastructure. Plus we'll need to add port capacity to handle the influx of shipments from suppliers.
It isn't as simple as waving a wand. In particular the lack of engineers is something that Steve Jobs pointed out in a meeting with the president.
Not a chance. German cars assembled in US don't cost more here in US. In fact they cost less then in Germany (mostly because of lower taxes).
Fire And ban for life every worker that left their station.
Invest in robotics and automation at that plant, and hire more skilled workers. Through technology, shrink your labor force by 40% over two years.
Send everyone that expects to make $100 an hour for putting in a screw back to their village slums to farm rice. Tell them don't bother calling until they have an engineering degree.
No more riots...
Invest in robotics and automation at that plant, and hire more skilled workers. Through technology, shrink your labor force by 40% over two years.
Send everyone that expects to make $100 an hour for putting in a screw back to their village slums to farm rice. Tell them don't bother calling until they have an engineering degree.
No more riots...