US made iPhone would almost half Apple profits

A study carried out for CRESC Center for Research on Socio-Cultural Change has revealed Apple’s reasoning for making its devices abroad.

As Apple have become more and more successful, more people have challenged Apple over the fact that they are an American company producing goods overseas. It doesn’t take a financial expert to realise that if Apple employed everyone it needed to manufacture its various devices in America, the boost to the economy would be sensational.

The research shows that Apple’s current deal with Foxconn sets the average production of the iPhone and iPad at $178.45. The devices sell on average for $630. Apple’s current gross profit then is 71.7%. The labor costs Apple pay on each device is a laughable $7.

$7 an iPhone? If only the knew…

Now, if Apple manufactured these devices in the US, they would have to comply with complicated labor legislation set by the government. And they would also have to… you know… pay their workers. This would set the production cost at $337.

Sadly, we live in a world where the greater good takes second place to cost benefit analysis, the choice is, from a business perspective, a no-brainer. But is that right? Do Apple have a right to keep costs down? After all, the ultimate goal of a business is to make money. Or should Apple take the hit, if it means a better outlook for the rest of us?

Leave your opinion below, and be sure to follow me on Twitter for all the latest Apple news, reviews and rumors.

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  • RaduTanasescu

    That’s a communist question. And trust me, I live in an ex-communist country where people still remember how life was not so long ago when we were ruled by a dictator.
     
    In the communist ideology, if you are successful and have a lot, you must give to those who have very little, you must sacrifice your profits for the well being of the rest, for no reason. In other words, if you’re smarter and work harder then others, you have to share with those who are dumber and lazier.
     
    No, Apple should not move production facilities in America and have their profits cut down. This would only give their competition the boost they need to beat them. Would that be fair? HTC would make phones in China, and Apple would struggle to compete with factories in America?
     
    What you should be asking is what is your government doing to convince American companies to return to making products in the U.S.? Because Apple isn’t going to commit suicide out of communist ideals.
     
    I live in Romania btw. 

  • zziccardi

    @RaduTanasescu Amen.

  • http://cashyourtech.com/replace-iphone.html Leah Rosenberg

    fooled in to thinking that you don’t make them a lot of money.