Why APPLE products are made in China but not in USA

[Tipu7]

The general notion as to why Apple’s products are mostly made in China is because labor in China is cheaper. However, the Apple’s CEO, Tim Cook, cleared up all these doubts during his interview on ’60 minutes’.

He was very clear on the reason as he told Charlie Rose on the segment aired on Sunday evening, “It’s skill.” Rose questioned if the Chinese workers are more skilled than American or German workers and Cook replied, “Let me be clear. China put an enormous focus on manufacturing, in what you and I would call vocational kind of skills. The US over time began to stop having as many vocational kind of skills. I mean you could take every tool and die maker in the United States and probably put them in the room that we’re currently sitting in. In China you would have to have multiple football fields.”

Tool and die makers are responsible for building and operating tools that are used in manufacturing. According to the US Bureau of Labor Statistics, there were about 75,950 tool and die makers in the US in May 2014. As per report of ‘60 Minutes’, about 1 million folks in China are making most of the Apple products with a majority of them working for the Apple contractor Foxconn.

Cook told Rose that the reason why China is ahead of US when it comes to manufacturing is, “Because it was a focus of them. It was a focus of their educational system. That is the reality.” So contrary to common belief, it is not just about cheaper labour, its also about skill and availability.

Apple CEO Tells Why All Apple Products Are Made In China And Not US

 

[General General]

Why can’t that work come home? Mr. Obama asked.
Mr. Jobs’s reply was unambiguous. “Those jobs aren’t coming back,” he said, according to another dinner guest.

The president’s question touched upon a central conviction at Apple. It isn't just that workers are cheaper abroad. Rather, Apple’s executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that “Made in the U.S.A.” is no longer a viable option for most Apple products.

Source

 

[The Sandman]

Sony is a Japanese company but PS4's are made in China by the same company. just a fact btw this is wrong section i think

 

[livingdead]

Apple pays pitiful amount per iphone(something like 8 dollar, if I remember) to chinese workers. No wonder they are singing about chinese skills. The labour cost in UK will be probably 5 times that.

 

[jmacmac]

Apple pays pitiful amount per iphone(something like 8 dollar, if I remember) to chinese workers. No wonder they are singing about chinese skills. The labour cost in UK will be probably 5 times that.

why didn't they go to Indian then?

 

[Providence]

Most importantly, what is the PRICE OF THAT SKILL ?

in US it is at least $25 an hour while in China it is $5 !!

 

[livingdead]

why didn't they go to Indian then?

because India does not have infrastructure essential for mass manufacturing(keeps costs low) and has heavily unionized labour force(labour laws suck, they can close down factories) ...among other reasons.. there is nothing special about chinese fingers...

 

[AnnoyingOrange]

Well in a globalized world... thats what happens.. Manufacturing goes where its effective... as soon as Manufacturing becomes effective in US ..Manufacturing jobs will come back to US...

 

[oprih]

Chinese workers are more productive in general and have lower wages compared to their american counterparts, as for other countries with lower wages like india, it's not choice for apple since they can't match Chinese productivity.

 

[Faiez]

Apple pays pitiful amount per iphone(something like 8 dollar, if I remember) to chinese workers. No wonder they are singing about chinese skills. The labour cost in UK will be probably 5 times that.

They pay the market rate. Market rate in China is low. And it's not just labor costs, everything else is also cheap in China such as energy, raw materials etc etc. Plus east Asia, has built over several decades a very very successful electronics manufacturing industry so they really are good with it. The thing with manufacturing is not just producing the product, it's about producing it efficiently, cost effectively and minimizing losses.

It's the minimum wage laws in the west that are to be blamed for manufacturing going overseas.

 

[livingdead]

They pay the market rate. Market rate in China is low. And it's not just labor costs, everything else is also cheap in China such as energy, raw materials etc etc. Plus east Asia, has built over several decades a very very successful electronics manufacturing industry so they really are good with it. The thing with manufacturing is not just producing the product, it's about producing it efficiently, cost effectively and minimizing losses.

It's the minimum wage laws in the west that are to be blamed for manufacturing going overseas.

I doubt US has shortage of raw materials, which is traded internationally. But I agree, labour cost is only a part of overall cost, chinese build infrastructure and invited foreign companies to set shop.
I was questioning apple ceo's assertion about skills, it can be developed anywhere. Yes they pay market rate in china.
Apple basically trying to hide the fact that they dont pay enough tax in US, and are not doing enough for their chinese workers(they can easily influence foxconn to give better wage/benefit)

 

[Jlaw]

because India does not have infrastructure essential for mass manufacturing(keeps costs low) and has heavily unionized labour force(labour laws suck, they can close down factories) ...among other reasons.. there is nothing special about chinese fingers...

Indian workers lack
skills.....

 

[livingdead]

Indian workers lack
skills.....

no.

 

[Jlaw]

no.

Most engineering graduates lack in skills: Study - Indian Express

 

[livingdead]

Most engineering graduates lack in skills: Study - Indian Express

wtf...
bot test: how much is two plus three?