![]() Even with China’s population it is still a challenge to meet the demands of labor when so many companies are competing for the labor. Apple now pays a premium on top of minimum wage to their contract manufacturers to ensure that they receive the labor needed to not delay production. There are also all of the upstream suppliers who are also in need of employees to work on their sub-assemblies and components that go into the finished good. ![]() During an iPhone launch contract manufacturers need to hire or re-allocate around 250,000 people to work on finally assembly of the new iPhone. Companies are competing for moderately “skilled” labor to meet the demands of product launches. (2) Labor is starting to become an issue during peak seasons, usually over the summer due to the large number of manufacturing companies looking for labor. China also has much larger and more nimble factories than in the United States. Many of the upstream components and subassemblies are also manufactured in China and Southeast Asia, so to do final assembly in the United States would create huge logistical challenges. As a consumer would you be willing to pay at least $100 more for an iPhone to know it was designed and manufactured in the United States? (1)Īpple along with other manufacturing companies has taken manufacturing overseas to reduce costs and improve efficiencies. Apple Inc has received a lot of bad publicity for using Chinese manufacturing companies to build most of their products.
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