Greg's bite: What if Apple assembled its products in the USA?
TweetFollow Us on Twitter

Greg's bite: What if Apple assembled its products in the USA?

By Greg Mills

On the day iPhone is likely to be announced for Verizon, a study I found looking at the profound effect on the US economy of Apple outsourcing assembly of iPhone to China is particularly interesting.  

Can you believe Apple CEO Steve Jobs could put Apple on track to hire as many as half a million Americans who are currently out of work, while only marginally decreasing Apple's stellar profits? Jobs could add over US$10 billion a year to the national payroll simply by bringing assembly of Apple products home. Our government should make such a move as easy as possible by making the US employer environment more conducive to such a move.

I did an article recently on Apple's industrial footprint in China. While the subject of that article was the nature of Apple's business dealings with contractor assembly companies and their employees in China, another issue came to light recently in a study done by the Asian Development Bank Institute, located in Japan.  See http://www.adbi.org/files/2010.12.14.wp257.iphone.widens.us.trade.defici... . On its face, Apple's decision to "import" fully assembled iPhone from China increases the US trade deficit with China by 1.9 billion dollars per year.  

That number isn't really as bad as it sounds, as the actual money paid by Apple for assembly in China was estimated to only be about $6.50 each. While that totals only $73.5 million, trade deficits are calculated upon the total assembled value of the product being exported. While $73.5 million dollars a year is enough for most of us to live on gracefully, it is not the 1% iPhone purportedly contributes to our trade imbalance with China, a figure commonly bandied about.

It is well known that iPhone -- and for that matter just about everything Apple makes and sells -- is assembled in China. The bottom line at the world's second largest company has swollen in part due to a business plan that keep prices down by sending assembly jobs overseas. The accounting for purposes of calculating our trade deficit with China is a bit deceptive. The truth is, with a profit margin of over 60% on an iPhone, Apple could hire Americans to assemble iPhone and still make a tremendous profit. Would that be hard to do? Yes, but the positive results for the United States would be profound and certainly survivable by Apple.

Based upon 2009 sales numbers of 11.4 million iPhones sold over seas, Apple could have added  $5.7 billion to US exports that year. With sales of iPhone soaring, these numbers are just a fraction of what is expected this year. With US assembly costs rising to an estimated $68 per US iPhone from the $6.50 per Chinese iPhone Apple would still make a 50% profit.  

If you figure, based upon global sales of 25,000,000 iPhones alone, sold in 2009, at $68 per iPhone, the US economy would have seen 1.7 billion dollars added to the national payroll that year. Rough numbers indicate that if Apple took a slight hit on its bottom line on the iPhone and only made a 50% profit instead of 60% by moving assembly of iPhone to the US they could have hired 68,000 Americans who were out of work.  Isn't 50% gross profit pretty darn good?

If you rerun the iPhone numbers based upon current estimates of up to 60,000,000 iPhones to be sold this year, at $68 per unit, Apple could add over four billion dollars to the American payroll and hire 163,000 assembly workers by simply assembling the iPhone in the USA.  

If you add the iPad to the situation, based upon similar numbers, if Apple makes 65,000,000 iPads in 2011 they could hire over 300,000 Americans by moving iPhone and iPad assembly alone to the USA and add up to 10 billion dollars to the US economy in salaries. Adding Macs to the numbers could add even more. I suspect the hit on the stock prices of Apple wouldn't be that hard, as the Wall Street buzz from making such a move would be overwhelmingly positive.   

If Apple moved assembly to the US, some people would be grateful and buy Apple instead of products from companies that assemble their products in China. Could increased sales and an improved US economy make this move by Apple a wash economically? I think so, but I am not an economist. Were Apple to do this, federal tax credits and concessions by states willing to make the Untied States and their state a more congenial host for employers would be required.  Congress should figure out a way to move US jobs back to the USA.     

Jobs should discuss Apple's terms for moving assembly of its product to the USA with President Obama. With unemployment and the economy putting him over the barrel, the Apple CEO could play his hand well to obtain concessions and tax advantages to move jobs from China back to the USA.  Imagine at the end of an Apple event if Jobs were to say: "Oh one last thing, we at Apple are grateful for the American dream that our success represents. We have decided that while it might hurt our bottom line a little bit, Apple is committing to begin the process of moving our product assembly lines back to the Untied States and making Apple a 'Made in the USA' company.  If you like that idea, could you please buy Apple stock and help us finance that?"  

That's Greg's bite for today.

(Greg Mills, is a Faux Artist in Kansas City. Formerly a new product R&D man for the paint sundry market, he holds 11 US patents. He's working on a solar energy startup, www.CottageIndustrySolar.com using a patent pending process of turning waste dual pane glass into thermal solar panels used to heat water. Greg writes for intellectual web sites and Mac related issues. See Greg's art web site at www.gregmills.info ; his email is gregmills@mac.com )

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Google Earth 7.1.7.2602 - View and contr...
Google Earth gives you a wealth of imagery and geographic information. Explore destinations like Maui and Paris, or browse content from Wikipedia, National Geographic, and more. Google Earth combines... Read more
ClamXav 2.10 - Virus checker based on Cl...
ClamXav is a popular virus checker for OS X. I have been working on ClamXav for more than 10 years now, and over those years, I have invested a huge amount of my own time and energy into bringing... Read more
Tweetbot 2.4.4 - Popular Twitter client.
Tweetbot is a full-featured OS X Twitter client with a lot of personality. Whether it's the meticulously-crafted interface, sounds and animation, or features like multiple timelines and column views... Read more
Sierra Cache Cleaner 11.0.1 - Clear cach...
Sierra Cache Cleaner is an award-winning general purpose tool for macOS X. SCC makes system maintenance simple with an easy point-and-click interface to many macOS X functions. Novice and expert... Read more
Things 2.8.8 - Elegant personal task man...
Things is a task management solution that helps to organize your tasks in an elegant and intuitive way. Things combines powerful features with simplicity through the use of tags and its intelligent... Read more
Remotix 4.1 - Access all your computers...
Remotix is a fast and powerful application to easily access multiple Macs (and PCs) from your own Mac. Features Complete Apple Screen Sharing support - including Mac OS X login, clipboard... Read more
Airfoil 5.1.2 - Send audio from any app...
Airfoil allows you to send any audio to AirPort Express units, Apple TVs, and even other Macs and PCs, all in sync! It's your audio - everywhere. With Airfoil you can take audio from any... Read more
Firefox 49.0.1 - Fast, safe Web browser.
Firefox offers a fast, safe Web browsing experience. Browse quickly, securely, and effortlessly. With its industry-leading features, Firefox is the choice of Web development professionals and casual... Read more
Default Folder X 5.0.7 - Enhances Open a...
Default Folder X attaches a toolbar to the right side of the Open and Save dialogs in any OS X-native application. The toolbar gives you fast access to various folders and commands. You just click on... Read more
Safari Technology Preview 10.1 - The new...
Safari Technology Preview contains the most recent additions and improvements to WebKit and the latest advances in Safari web technologies. And once installed, you will receive notifications of... Read more

4 games like Burly Men at Sea to inspire...
Burly Men at Sea is out today and it looks a treat. It tells the tale of three Scandinavian fishermen who leave the humdrum of their daily lives to go exploring. It’s a beautiful folksy story that unfurls as you interact with the environment... | Read more »
3 reasons you need to play Kingdom: New...
Developed by a tag team of indie developers - Thomas "Noio" van den Berg and Marco "Licorice" Bancale - Kingdom is a vibrant medieval fantasy adventure that casts players as a king or queen who must expand their empire by exploring the vasts lands... | Read more »
JoyCity have launched a brand new King o...
Great news for all of you Game of Dice fans out there - JoyCity have just released a brand new limited edition pack with a really cool twist. The premise of Game of Dice is fairly straightforward, asking you to roll dice to navigate your way around... | Read more »
Burly Men at Sea (Games)
Burly Men at Sea 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: Burly Men at Sea is a folktale about a trio of large, bearded fishermen who step away from the ordinary to seek adventure. | Read more »
3 tips for catching the gnarliest waves...
Like a wave breaking on the shore, Tidal Rider swept its way onto the App Store charts this week settling firmly in the top 10. It’s a one-touch high score-chaser in which you pull surfing stunts while dodging seagulls and collecting coins. The... | Read more »
The beginner's guide to destroying...
Age of Heroes: Conquest is 5th Planet Games’ all new turn-based multiplayer RPG, full of fantasy exploration, guild building, and treasure hunting. It’s pretty user-friendly as far as these games go, but when you really get down to it, you’ll find... | Read more »
Infinite Tanks (Games)
Infinite Tanks 1.0.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.0 (iTunes) Description: | Read more »
Agatha Christie - The ABC Murders (FULL)...
Agatha Christie - The ABC Murders (FULL) 1.0 Device: iOS Universal Category: Games Price: $6.99, Version: 1.0 (iTunes) Description: Agatha Christie: The ABC Murders Your weapon is your knowledge. Your wits will be put to the ultimate... | Read more »
HeadlessD (Games)
HeadlessD 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: HeadlessD is hand-painted dungeon crawler with intuitive touch controls and NO in-app purchases. | Read more »
Leaf for Twitter (Social Networking)
Leaf for Twitter 1.0.1 Device: iOS iPhone Category: Social Networking Price: $4.99, Version: 1.0.1 (iTunes) Description: | Read more »

Price Scanner via MacPrices.net

Apple refurbished 2015 13-inch MacBook Airs a...
Apple has Certified Refurbished 2015 13″ MacBook Airs available starting at $759. An Apple one-year warranty is included with each MacBook, and shipping is free: - 2015 13″ 1.6GHz/4GB/128GB MacBook... Read more
MacBook Airs on sale for up to $100 off MSRP
B&H Photo has 13″ and 11″ MacBook Airs on sale for up to $100 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 11″ 1.6GHz/128GB MacBook Air: $799 $100 MSRP - 11″ 1.6GHz/256GB... Read more
Apple refurbished 12-inch 128GB iPad Pros ava...
Apple has Certified Refurbished 12″ Apple iPad Pros available for up to $160 off the cost of new iPads. An Apple one-year warranty is included with each model, and shipping is free: - 32GB 12″ iPad... Read more
Phone2Action Unveils New Voter Turnout Techno...
Phone2Action, a leading digital advocacy platform, today launched its Tech to Vote Civic Action Center digital advocacy and communications platform on National Voter Registration Day September 27.... Read more
Apple & Deloitte Team Up to Help Business...
Apple and international professional services firm Deloitte have announced a partnership to help companies quickly and easily transform their workflow dynamics by maximizing the power, ease-of-use,... Read more
Chop Commute – See Traffic and Drive Times on...
Shrewsbury, Massachusetts based Indie developer, InchWest has released Chop Commute 1.61, a Mac app that takes the guesswork out of daily commute by showing real-time traffic and drive times right on... Read more
12-inch 32GB WiFi iPad Pros on sale for $50 o...
B&H Photo has 12″ 32GB WiFi Apple iPad Pros on sale for $50 off MSRP, each including free shipping. B&H charges sales tax in NY only: - 12″ Space Gray 32GB WiFi iPad Pro: $749 $50 off MSRP -... Read more
Recent price drops on refurbished iPad minis...
Apple recently dropped prices on several Certified Refurbished iPad mini 4s and 2s as well as iPad Air 2s. An Apple one-year warranty is included with each model, and shipping is free: - 16GB iPad... Read more
Apple refurbished Mac minis available startin...
Apple has Certified Refurbished Mac minis available starting at $419. Apple’s one-year warranty is included with each mini, and shipping is free: - 1.4GHz Mac mini: $419 $80 off MSRP - 2.6GHz Mac... Read more
13-inch 2.5GHz MacBook Pro available for $928...
Overstock has the 13″ 2.5GHz MacBook Pro available for $927.99 including free shipping. Their price is $171 off MSRP. Read more

Jobs Board

*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
Restaurant Manager (Neighborhood Captain) - A...
…in every aspect of daily operation. WHY YOU'LL LIKE IT: You'll be the Big Apple . You'll solve problems. You'll get to show your ability to handle the stress and Read more
*Apple* Wireless Lead - T-ROC - The Retail O...
…wealth of knowledge in wireless sales and activations to the Beautiful and NEW APPLE Experience store within MACYS.. THIS role, APPLE Wireless Lead, isbrandnewas Read more
Lead *Apple* Advocate - T-ROC - The Retail...
…Company, is proud of its unprecedented relationship with our partner and client, APPLE ,in bringing amazing" APPLE ADVOCATES"to "non" Apple store locations. Read more
*Apple* Advocate - T-ROC - The Retail Outsou...
…Company, is proud of its unprecedented relationship with our partner and client, APPLE ,in bringing amazing" APPLE ADVOCATES"to "non" Apple store locations. Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.