iPhone Production Not Coming to the U.S. Anytime Soon
Close to half of the more than 200 million iPhones that are made every year are from a central China Foxconn facility.
The employees at that facility receive an hourly wage that is equal to $1.90. The workers produce as many as 350 iPhones each minute or approximately 500,000 daily.
The iPhones, when finished, are hauled away by truck traveling only three miles until they reach the airport. About 150,000 are packed aboard a Boeing 747 and sent to Anchorage, where the aircraft stops for refueling and then heads to Louisville, Kentucky to a distribution facility.
Many often talk about why iPhone are not built in the U.S. The hourly wage that Chinese factory employees are paid of $1.90 should easily answer that doubt.
Approximately 350,000 employees work at the facility owned by Foxconn. If that amount it multiplied by the hourly rate for an 8-hour workday then the daily cost of labor is approximately $5.32 million.
If that were based on a wage of $15 per hour in the U.S., then daily costs of labor would exceed $42 million.
There is a big push today to bring manufacturing back to the U.S. promoting the “Made in America” brands. However, there is a big uncertainty as to whether consumers would pay double or even more for their iPhones.
Skills are involved as well. Tim Cook the Apple CEO has said that iPhones are produced by Foxconn in China for efficiency, as employees there are taught speed and manufacturing skills that are not offered in the U.S.
That is definitely a problem and many are going to be observing what happens, if anything over the upcoming 4 years as a new U.S. president takes office next month.
However, for now, when sending a message, reading an update on Facebook, taking a phone call or making a call on an iPhone, remember the Chinese worker earning $1.90 per hour who helps to make as many as 500,000 iPhones each day.
On the other hand, the pay might not be to the standards that people are accustomed to in the U.S. or other countries, but it is the standard in China and thanks to companies such as Foxconn and its clients, the employees have job security.