6 ms·

I wish I could read an economic analysis of a container of iPhones landing at the port of Los Angeles. This is recorded as trade imbalance but somehow I feel Ap

I wish I could read an economic analysis of a container of iPhones landing at the port of Los Angeles. This is recorded as trade imbalance but somehow I feel Apple and US customers are getting the full benefit of low cost Chinese labor.

taneq 10y ago
The funny thing is, the only way to determine whether that's true or not is to add up all the pieces of paper going in either direction. And it's not until that happens that you know who's exploiting who and who's getting exploited.
- theseatoms 10y ago
  Maybe no one's getting exploited?
criley2 10y ago
>I wish I could read an economic analysis of a container of iPhones landing at the port of Los Angeles. This is recorded as trade imbalance but somehow I feel Apple and US customers are getting the full benefit of low cost Chinese labor. It doesn't seem like Chinese labor plays that big of a role regardless, seeing as labor costs on a $800 device are around $2. Apple and their shareholders certainly benefit from selling $800 devices at 70% profit margins, but I would not go so far as to say that consumers also get the benefit, seeing as they are paying 70% markups.
- Scoundreller 10y ago
  > seeing as labor costs on a $800 device are around $2. Well, the Foxconn (or whomever) assembly labor costs may be $2, but in some way, shape or form, all $800 is a labor cost to somebody, somewhere.
  - garrettgrimsley 10y ago
    Only if you subscribe to the labor theory of value.
    - Scoundreller 10y ago
      What other theory is there? That 4 $100 bills get burned in the production of every iPhone?
      - garrettgrimsley 10y ago
        Subjective theory of value.
AnAfrican 10y ago
Apple doesn't do seafreight. at least not for its final products.
- mikeash 10y ago
  They clearly do a lot of air freight for products in high demand (I've had plenty of iStuff that included tracking information starting in Shenzhen or Shanghai), but I'd have expected them to switch over to ships to stock their stores once production ramps up and demand ramps down. Do you have more info on this?
  - AnAfrican 10y ago
    No detailed quote or link but : - it makes a lot more sense to ship by Air for product with such value per kg - Apple has been shipping products by Air since 1997(famously they booked the entire capacity for the holiday season) - Apple brags about how little inventory they keep all the time. Sea Freight is slow, very slow.

taneq 10y ago

The funny thing is, the only way to determine whether that's true or not is to add up all the pieces of paper going in either direction. And it's not until that happens that you know who's exploiting who and who's getting exploited.

theseatoms 10y ago
Maybe no one's getting exploited?

criley2 10y ago

>I wish I could read an economic analysis of a container of iPhones landing at the port of Los Angeles. This is recorded as trade imbalance but somehow I feel Apple and US customers are getting the full benefit of low cost Chinese labor. It doesn't seem like Chinese labor plays that big of a role regardless, seeing as labor costs on a $800 device are around $2. Apple and their shareholders certainly benefit from selling $800 devices at 70% profit margins, but I would not go so far as to say that consumers also get the benefit, seeing as they are paying 70% markups.

Scoundreller 10y ago
> seeing as labor costs on a $800 device are around $2. Well, the Foxconn (or whomever) assembly labor costs may be $2, but in some way, shape or form, all $800 is a labor cost to somebody, somewhere.
- garrettgrimsley 10y ago
  Only if you subscribe to the labor theory of value.
  - Scoundreller 10y ago
    What other theory is there? That 4 $100 bills get burned in the production of every iPhone?
    - garrettgrimsley 10y ago
      Subjective theory of value.

AnAfrican 10y ago

Apple doesn't do seafreight. at least not for its final products.

mikeash 10y ago
They clearly do a lot of air freight for products in high demand (I've had plenty of iStuff that included tracking information starting in Shenzhen or Shanghai), but I'd have expected them to switch over to ships to stock their stores once production ramps up and demand ramps down. Do you have more info on this?
- AnAfrican 10y ago
  No detailed quote or link but : - it makes a lot more sense to ship by Air for product with such value per kg - Apple has been shipping products by Air since 1997(famously they booked the entire capacity for the holiday season) - Apple brags about how little inventory they keep all the time. Sea Freight is slow, very slow.