Riot Shuts Down Foxconn Plant, Impact on iPhone 5 Production Unclear

[mojothemonkey]

Ive seen the writeup on how much it would cost to bring the manufacturing state-side. It's not many times more expensive. Add somewhere around 8-15% depending on the exact device.

I think the workers are mad that they have to make iphones while still going home to use outdated iMacs. Where are teh 2012 imacs!

 

[Krazy Bill]

Another reason for not manufacturing products in the US is due to the lack of die makers.

Uh... no. This is laughable. The only reason Apple (and others) out-source to China is the $1.50/hr wage along with the tax havens. Holy crap some of you guys are naive.

 

[ChrisA]

Get ready for $5000 iphones!

Good question. Seriously what would it cost if i where made in the US. First off we must take into consideration that it would be designed differently. The phone would have fewer hand assembly steps and LOTS more automation.

Back when Apple DID make computers here they designed the cases with no screws because robots are not good with screws, they used other types of fasteners more suited to robots.

We still buy stuff made in Germany. I have some aqurium pumps and hand power tools that are very high quality but but 2X the price. If they can do it in Germany so can the US. But would people pay the higher prices, my bet is no.

 

[LJCHOW]

Glovegate iPhone 5

Hope it's not because I called apple about having the finger from a rubber glove stuck to the back of my new iPhone 5.

 

[GermanyChris]

Nice to see the subjugated striking back!

 

[OrangeSVTguy]

Next time dont bring your S3 to work.

 

[2strokedude]

No wonder there are chips on new iPhones! I'm surprised the screens are still intact!

I had to take my iPhone5 back to the apple store. Something was very loose in there. It sounded like the battery.

 

[Bezetos]

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...

*Sigh* There are so many things wrong with this post I don't even know where to start...

Invest in robotics and automation at that plant? No ****** Sherlock, you think they have no automation there whatsoever? Do you have any idea how the process works? You do realise that there are limits in terms of automation and some things are done more efficiently and precisely by hand?

Hire more skilled workers? You make it sound so damn easy...

I was expecting to see some ignorant posts soon though, you're one of the first.

 

[LJCHOW]

Glovegate

Here is what I found.

 

[NOV]

Is Tim Cook already on his way for a new visitation of the factory and declare some salary raises, meal vouchers, water fountains etc.

 

[Limboistik]

Maybe Apple should use some of it's $100bn to PAY IT'S GODDAMN WORKERS.

Except they're not Apple's workers.
They're Foxconn workers.

Apple just contracts Foxconn to make their parts for them. They have nothing to do with their internal pay structure and working conditions. That is Foxconn's business.

 

[sulpfiction]

They already make some of them here - I'm assuming since my iPhone was shipped from Tennessee whereas my wife's came from a Foxconn plant in China.

Exactly NONE are made here in the US. Ur phone just happened to be here already, sitting in a warehouse when u got ur info.

 

[damitssam]

China is getting too expensive these days... now they are going to vietnam

 

[Sony311]

Unless the US workers are willing to work for the same amount the Taiwanese worker typically gets paid, definitely won't happen.

Time to start making stuff here.

 

[class77]

I thought they had already made arrangements for some Apple manufacturing to be moved to Foxconn in Brazil

 

[jrswizzle]

deleted because I can't quote anyone...

 

[NOV]

I'm not really sure how long it takes to manufacture an iPhone (from what I understood they are practically fully assembled manually). But if see the product tear down videos I would be surprised if it takes longer than 3 hours to assemble it (and then I include all indirect hours, product preparation, packaging, distribution etc.).

I remember somewhere reading the cost of a chinese worker is $ 2.
I assume the hourly rate of a USA factory worker will be somewhere around $ 25 - $30. Also need to be taken in account that the parts will become more expensive because they would be needed to ship separately overseas. So the rising of cost I suspect to be somewhere around $ 75 - $ 100 max per iPhone.

 

[ssgbryan]

I too would love to see that in my lifetime. If any company could pull it off, it would be Apple.

But it's not really the tax money. It's the wages, the health benefits, and the fact that most of the subcomponents are already built in Asia.

That said, I'd really be interested in knowing just how much more an actual U.S. assembled iPhone would cost. 2x? 3x?

About 10% more.

 

[Sony311]

Unless the US workers can all work for the same wages as their Taiwanese counter parts, that will never happen. US built IPhones would cost you $1000 easily if not more.

 

[lilo777]

It looks like Tim Cook finally started "doubling down on secrecy"

 

[JHankwitz]

Time to start making stuff here.

Only if you're willing to pay the price. Is seems that everyone tends to make this a political problem and asks the government to mandate "Made in USA". The truth is that companies follow customer demands and will only thrive filling customer needs rather than government mandates. As soon customers start paying the extra price for USA made products, production will move back here.

Manufacturers know that US customers are not willing to pay the extra price for USA made products. They already complain about the prices they currently pay for Asian made goods.

 

[duffmanth]

Maybe this will halt production of the iPhone 5 and Apple can go back to the drawing board with what materials they use to manufacture it.

 

[NOV]

that seems pretty much in line with my calculation....

 

[takenaback]

Most outrageous headline ever.


And I've read The Sun.

 

[Sedrick]

Apple's self-serving spiel about needing "hundreds of manufacturing engineers" was just typical deflection on their part, and only applies to places where the final assembly line passes through fifty different people like the iPhone does now.

The US has plenty of engineers of the kind that a robotic factory line would need, which is where Foxconn is heading as well.

Major parts such as CPUs, memory and support chips are already made in the US.

Current labor cost is what, $8 per unit? You could up that by an entire order of magnitude to $80, and Apple would still make more on each phone than most phone makers even if they didn't raise the price.

The Apple apologists here, though, would barely bat an eye even if those factories producing their precious iPhones where using child labor. As long as they have their bling.

It's always "they couldn't afford to produce it in the US", "it would take yeeaarrs to build up that kind of infrastructure" or some such BS. Look at all the Asian car manufacturers opening up plants in the US. That is the height of irony.

I guess Apple doesn't plan on being in the iPhone business in another 5 years, thus the mad hording of profits in the short run.