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One of the reasons Jobs cited as being an important factor for locating in China is the availability of skilled labor. It would have taken them years to hire en
by danudey 6y ago
One of the reasons Jobs cited as being an important factor for locating in China is the availability of skilled labor. It would have taken them years to hire enough industrial engineers to handle the scope and scale and volume that the iPhone required in the US, if they could even manage it at all, but only weeks to do so in China.
The supply chain is also important. One person who worked in Shenzhen commented that, as a manufacturer, if you suddenly discover you need a certain kind or size or shape or length of screw, you can have a shipment at your door the same day, because the factory that produces a thousand different kinds of screws is just down the road.
To move to the US, they'd either have to replicate most of that manufacturing in the US, which would take decades and be extremely expensive, or deal with a week of latency every time they need a new or different part as they get it shipped from China anyway, making most of this process moot.
Yes, Apple should do something about this issue, and yes it's horrible to imagine them profiting off this with their "nice guy" image, but keep in mind that if they did this and increased the cost of the iPhone, other companies wouldn't, and it would put Apple at a huge disadvantage.
One thing we've seen over the last century of western civilization is that cheaper wins over better. Cheaper toasters that don't last, cheaper fridges that break down after their three-year warranty is up, cheaper laptops that come infected with bloatware and adware. If Apple refused to manufacture in China because of forced labour issues, then they'd lose out on sales to companies who kept benefitting from it, because consumers, as a whole, just don't give a shit.
I mean, if anyone cared about what it takes to provide them with cheap products, they'd be enraged that Jeff Bezos is the richest man in the world even though the workers that run his company are subsisting on food stamps and burnout quotas.
That said, Apple is working on moving production to India, and I'd wager that the more they can do that and expand their operations there, the less and less they'll deal with China for manufacturing, but right now no one who manufactures electronics in large volumes can do so without involving China.
In the meantime, they can work on cutting this supplier out of their supply chain; the article is talking about only one of their suppliers, though a long-term supplier, and not actually people working for Apple or manufacturing iPhones directly, so hopefully they can draw a line in the sand and force Lens to either stop using forced labour or lose the contracts.
Fingers crossed.
- guessbest 6y agoThis doesn't sound like they are using skilled labor. > It suggests that iPhone glass supplier Lens Technology has been using Muslim minority Uighurs, who were given the stark choice of working in the company’s plant or being sent to detention centers which have been likened to concentration camps
- nubb 6y agoAnd yes we see how well this is working out with the recent uprising at the Indian iphone plant.
- racl101 6y ago> One of the reasons Jobs cited as being an important factor for locating in China is the availability of skilled labor. It would have taken them years to hire enough industrial engineers to handle the scope and scale and volume that the iPhone required in the US, if they could even manage it at all, but only weeks to do so in China. So, potentially, if the phones were made in the US they'd be like Ferraris? Very expensive and only a few made at a time?
- oarsinsync 6y ago> One thing we've seen over the last century of western civilization is that cheaper wins over better. Cheaper toasters that don't last, cheaper fridges that break down after their three-year warranty is up, cheaper laptops that come infected with bloatware and adware. If Apple refused to manufacture in China because of forced labour issues, then they'd lose out on sales to companies who kept benefitting from it, because consumers, as a whole, just don't give a shit. Apple customers have made it very clear that as a whole, they are not price conscious. Better beats cheaper, or they’d be all using cheapo Android phones. Apple has very high profit margins compared to their competitors in the same industries. Apple can pay their suppliers more, rather than driving them down to the bone, which of course results in workers being exploited. Or they could be more transparent that the only thing that matters is the size of their profits, instead of cultivating a good guy corporate image, as the hypocrisy stinks.
- justapassenger 6y ago> One of the reasons Jobs cited as being an important factor for locating in China is the availability of skilled labor Highly skilled forced labor? Let's not kid ourselves - it's all about cost cutting. They're trying to diversify and move to another low wage country, India. Not - I'm not saying that China or India lacks skilled labor, or highly paid experts. But that's not why companies like Apple are there. They're there for cheap labor, and close to non-existent labor protections. But China is starting to change, so Apple is looking for new places. > Yes, Apple should do something about this issue, and yes it's horrible to imagine them profiting off this with their "nice guy" image, but keep in mind that if they did this and increased the cost of the iPhone, other companies wouldn't, and it would put Apple at a huge disadvantage. It's like saying that Google and Facebook should continue to disregard privacy, because their huge margins relay on that?