Here is Why Your iPhone is Assembled in China

Here is Why Your iPhone is Assembled in China

Here is Why Your iPhone is Assembled in China

According to Tim Cook, Chinese workers have skills that Americans have ceased to have. But an iPhone manufactured in the USA absolutely would cost much higher than China.

Here is Why Your iPhone is Assembled in China

Because Apple makes the enormous preponderance of profits from the smartphones industry (92% in first quarter 2015), we say significantly that if the Cupertino company is manufacturing its products in China is to maximize these advantages. However, CEO Tim Cook has a different reason. Newly, the American 60 Minutes dedicated an event to Apple. And throughout it, the journalist Charlie Rose asked the CEO why his company is manufacturing its iPhone and other products in China.

Tim Cook’s Answer was: “Skills“.

Indeed, according to him, the Chinese are more qualified than Western workers. When the journalist asked why Apple did manufacture its equipment in China besides for the cost of labor, Tim Cook responded that it was for “skills“. The reporter then asked if Chinese workers are more skilled than American and German workers and the Apple CEO answers “Yes“, before explaining that in China, we focus on the production, even at the level of the education system.

“As Over time, America has discontinued having this type of professional skills. You can use all the tool and disappear the makers in the United States, they could fit in this room. In China, you absolutely take some football fields“, he also added.

The discussion holds up. Despite, the cost of an iPhone would also be important if it had happened on US soil (if the business was labor). First, there is the price of labor is higher in the United States. For example, when Motorola has repatriated its production in the US, it would have cost an additional $ 4 for every Moto X assembled, according to Forbes magazine. And that’s not all because what really inflate the bill, it is the taxes. Indeed, for profits made abroad, Apple pays only 2% of taxes. But if it was repatriating its production to the United States, all company profits would be taxed at 35%, according to the magazine.