iPhone Adds Billions to the Trade Deficit With China

Apple, which makes the iPhone, profits handsomely, partially because of the cheap labor used to assemble the iPhone. Last year, Apple recorded a gross profit margin of 64 percent on the phone that retails for $178.

The iPhone, made by one of America’s most iconic companies but assembled in China, added $1.9 billion to the U.S. trade deficit last year, according to a new report.

www.economyincrisis.org

Author: Dustin Ensinger

What I found to be amazing is that if Apple chose to manufacture the iPhone in America, they could still realize a 50% gross profit margin. Talk about hard-core revenue maximization! After all of the problems they've face with their manufacturer Foxconn in China (suicides,horrendous working conditions,etc.) along the fact that there is a real need for manufacturing jobs in America, you would think they would be showing more interest in helping fix problems all the way around rather than continuing on this destructive path in the name of profit.

I think Apple's big enough and important enough to be able to easily weather the red tape of business regulations in America. I also think they could greatly reduce their carbon and waste footprint by having smaller production facilities closer to their individual markets rather than a massive facility in one location and having to ship globally.

But,what do I know? I could be wrong...

On a personal note, I have zero interest in an iPhone (I'll take a Nokia smart phone any day). I don't like any of their hand-held products but I do love their MacBooks.

That's interesting...S+F for you.
Personally, I'm a BB user...I believe mine was made in Canada...a lot closer than China.
I bet you that with governmental incentives here in the US, Apple could have gotten their profit margin closer to the 64%.

Americans wouldnt work the hours the chinese do for the slave wages theyre paid.. Nor would they put up with the living conditions - most factory workers in asia are given living accommodations that are greatly lacking.. And poor workplace safety.. It would cost apple a large chunk of their ill-earned profit in both wages and meeting OSHA standards.. Then theres the taxes in the u.s... So they use slave labour in asia to bring americans the latest piece of trash electronics or other material goods to satisfy the materialism of the public and maximise profits... At the expense of the people in asia..

reply to post by Expat888


Sadly,many Americans,it seems, are willing to line up for blocks waiting for hours or days for the latest gadgets to be released for sale. They are willing to neglect their personal lives,health and jobs just to get their paws on some pricey chunk of shiny stuff they probably have no justifiable need for or shouldn't really be buying in the first place. As long as people continue to slavishly buy this stuff to feed their egos,things aren't going to change. Companies may spark the flame of desire with their products and marketing,but consumer choices are ultimately what keep the fire burning when it comes to bad situations such as these.

reply to post by FlyingJadeDragon


Really there is little regulation they would even have to put up with .. the only reason they are over seas is for cheaper labor, which is just greedy considering the profit margin. Apple is a company people should boycott.

Also I'm sure that there are some tax loopholes.. they probably sell the Ipods/Iphones/Iwhateverelse to stores directly from china .. thus paying no US taxes on their overseas sales back to the us.

Yay free trade and slave labor!!

reply to post by FlyingJadeDragon


Very good post.
Don't worry, it will all end soon (the USA, not the world). China, India, Russia, Iran and other countries, are looking to replace the $US, as the world currency...once that happens...bbbooommmm

China has warned the US Fed that, if it keeps printing paper it will stop buying US Federal Bonds (US Debt)...once that happens...bbbboooommmmm

USA/UK Debt has surpassed 400% of each countries GDP (think Iceland, Ireland, Greece, Portugal, Spain, Italy). The only reason the economy hasn't gone bbbbbboooooommmmmmmm, is because they can still print more pieces of useless paper (Debt), and because China, and many countries, haven't been able to get rid of all their $US reserves...once they do...bbbbbooooooommmmmm

Anyway, in response to your post : "Anything But Apple"!!!

anythingbutipod.com...