What would the MacBook cost if it were made in the USA or Europe?

Discussion in 'Politics, Religion, Social Issues' started by MACDRIVE, Jul 6, 2007.

  1. MACDRIVE macrumors 68000

    MACDRIVE

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    #1
    I didn't know whether to ask this question in the MacBook forum or the Political forum.

    How much would it add to the price of a MacBook if it were made with American or European labour? I'm not looking for an exact figure, but rather your best guess would be fine.

    I've wondered about this for so long that I finally decided to make a thread about it.
     
  2. paddy macrumors 6502a

    paddy

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    #2
    I don't know about actual cost but I imagine they could sell it at the same price and still make a profit seeing as their margins are so high currently.
     
  3. MACDRIVE thread starter macrumors 68000

    MACDRIVE

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    #3
    ^
    That's what I was thinking too; I was thinking they could sell it at the same price but just make less of a profit. Would you care to guess at what Apple's profit margin is of the MacBook on a unit by unit basis? It surely would be fascinating to know. :)
     
  4. Queso macrumors G4

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    #4
    Don't Apple normally operate at around a 30% margin? I seem to recall that figure being bandied around when the quarterly results get announced.
     
  5. paddy macrumors 6502a

    paddy

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    #5
    I'd almost say they'd squeeze a 50% profit margin? I suppose it all depends what kind of a deal Intel are giving them.
     
  6. Fearless Leader macrumors 68020

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    #6
    no way it 50% on laptops, iphone yes and they deserve that price to pay for the R&D. ( and well its not really a profit, that 55% percent we saw didn't included the R&D which is well kinda necessary to figure thr profit margin)

    well I'm not sure how many hours it takes to build but, assuming 8$ an hour for the job (and assuming no benifits) to the 40 Euros a month, and including the profit that foxconn has to make apple would be spending 50 times more per hour.

    I'm going to guess it takes 1 hour to go from parts to completed, they'd see a price increase of .18 to say 8$, or whatever the worker be paid.

    Then you'd have to factor in the price of operating the plant, the initial build, and owning costs.

    so I'd say at most 50$ more.


    though I should now state my opinion:
    I wouldn't want to see this, that 40 Euros (just a number I found) a month is a pretty nice job high paying job to some worker.
     
  7. miloblithe macrumors 68020

    miloblithe

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    #7
    As Rokem implies, it's not 50% profit because they have to develop and market these things, as well as manage all sorts of other business overhead.
     
  8. paddy macrumors 6502a

    paddy

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    #8
    Yeah you're both probably right, it was just a guess on my part really but their manufacturing wages must be dirt cheap currently and I'd say they've worked out some pretty sweet deals with part suppliers.
     
  9. Ugg macrumors 68000

    Ugg

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    #9
    Is a macbook assembled in America from Chinese parts going to make a difference?

    If you're looking for a true comparison, all components would have to be made in the US as well.
     
  10. MACDRIVE thread starter macrumors 68000

    MACDRIVE

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    #10
    Do you mean only $50 more for each MacBook? :eek:

    I would gladly pay that to have an American made MacBook! :)

    That's what I meant in my start off post, but I just neglected to mention it. :eek:

    I think it would be a huge image boost for Apple by providing American factory workers jobs and if they made the whole entire product line in the U.S with U.S produced components. I don't know where the Intel chips are made though. :confused:

    I also think that the quality control would go way up too. :)

    How much more would I be willing to pay for an American made Apple computer with absolute flawless workmanship? I'd be willing to pay double the current price for a computer that was made in the USA with zero defects from an American workforce. :)
     
  11. FFTT macrumors 68030

    FFTT

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    #11
    You would have to consider union labor costs, vs. one or two dollars a day, health care and job safety issues and the burden of maintaining quality control when your workforce drops the ball on the quality of their work.

    We CAN build the very best, but then why is Toyota #1?
     
  12. MACDRIVE thread starter macrumors 68000

    MACDRIVE

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    #12
    This is why. ;)
     
  13. FFTT macrumors 68030

    FFTT

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    #13
    Pride of workmanship seems to be a lost art in large scale American manufacturing.

    If you want something done right you have to find individual craftsmen
    who are individually responsible for the quality of what you buy.

    Apple's reliability issues have mostly been due to individual component failure
    from one of their sub-contractors.

    Bad capacitors being a typical example.

    So the tough part is also controlling the quality of your third party vendors.
     
  14. Edandlindz28 macrumors regular

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    #14
    IMO it would be considerably more because you have to cover additional costs in the US than you would in other countries (i.e. works comp).

    Why do you out-source anyways? Make more money on items people work on for less?
     
  15. Sun Baked macrumors G5

    Sun Baked

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    #15
    Tighter control of quality, more automation in the US, reduction in failure rates, etc. are generally reasons companies come back to the US.

    The labor in the US would be significantly less here if the product lends itself to more automation, since companies would trade technology for cheap labor.

    If the product can be automated, and the labor reduced -- a US operation can be a better choice. Especially since quality issues, and product failures can be addressed by the company rather quick.

    Of course the product has to be of significant worth that failures and poor quality of subcontractors make the move worthwhile.

    For companies that are doing nothing more than assembling cheap Chinese parts, like Dell, it doesn't matter if the final assembly is China or the US -- unless the "assembled/made by Dell USA" stamp is important. The quality of the components are basically the same wherever the box is closed.
     

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