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Yes, We Can Make iPhones in America


               
2012 Oct 1, 7:11am   6,281 views  18 comments

by Politicofact   follow (0)  

http://www.forbes.com/sites/baizhuchen/2012/09/07/yes-we-canmake-iphones-in-america/

I argued that the current cost structure does not make any sense to assemble iPhones in America. I argued that we would be better off focusing on designing iPhones but letting the Chinese handle the assembly. The article has generated quite a few responses and heated debates. After some periods of soul searching, I have come to realize that I need to revise my original conclusion.

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2   Raw   @   2012 Oct 1, 7:54am  

Yes, we can make iphones in America, but why should we when China can make them cheaper. If other phone companies make their phones in China, they will have a competitive edge, and eventually Apple would go out of business.
Let Apple make the right business decisions, make lots of profits, and pay lots of taxes.

3   Shaman   @   2012 Oct 1, 8:03am  

It's not like apple is declining to show a profit on iPhones. I understand that the margin is considerable. That's based on a solid product and the company's reputation for quality high tech products. People can go cheaper but women don't need $1500 Coach handbags either. They buy what they perceive is best and pay the required price. If its no longer best, then you have problems. Manufacturing the iPhone in china wasn't necessary, but just enhanced profits a bit.

4   Raw   @   2012 Oct 1, 8:28am  

Quigley says

It's not like apple is declining to show a profit on iPhones. I understand that the margin is considerable. That's based on a solid product and the company's reputation for quality high tech products. People can go cheaper but women don't need $1500 Coach handbags either. They buy what they perceive is best and pay the required price. If its no longer best, then you have problems. Manufacturing the iPhone in china wasn't necessary, but just enhanced profits a bit.

Apple has high profit margins in part due to China, and also due it's technological advantage. That technological advantage can evaporate in this world. Look what happened to Rimm.
If a company is to dominate or even survive in this dog eat dog world it must use every tool at it's disposal, including cheap Chinese labor.

5   Politicofact   @   2012 Oct 1, 11:27am  

I don't know, Apple could make a more expensive product here!

It's not rocket science. its capitalism and simple supply demand.

Make the more expensive units and high end stuff here.

If not the iPhone, why not an integrated smart Ios tv? 55" entry level.

6   Politicofact   @   2012 Oct 1, 11:29am  

If anything the rarity of producing an Apple product in the USA will make it more expensive and more desirable.

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