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Hey Apple, Bring iPhone
Manufacturing Back to the U.S.!
By Ronald E. Bishop, Bishop &
Associates Inc.
Imagine if Mercedes cars
were no longer manufactured in
Germany, but outsourced to a
low-cost-labor country. Imagine
if the Ferrari was no longer
manufactured in Italy, or if
Rolex watches were not made in
Switzerland, or if
Harley-Davidson and Ducati left
their countries of origin and
migrated to cheap labor
countries. Some products are so
iconic, so closely associated
with their country of invention
and design, that
 it
is unimaginable that they would
be made elsewhere.
So it is with the iconic iPhone,
iPad, and iPod. These products
are uniquely American. Products
that reflect American
innovation, ingenuity, and
design prowess. But these iconic
American products are not
manufactured in America. To me,
that’s embarrassing. Somehow it
also feels shameful that our
system can develop truly
revolutionary, life-changing
products such as these, but we
can’t manufacture them. Instead,
we chase a few bucks by using
cheap labor, depriving Americans
of good manufacturing jobs.
It really is only a few bucks.
Our analysis, based partly on
iSuppli’s estimated cost to make
an iPhone, puts the
manufacturing costs of an iPhone
manufactured in China around
$220 per phone. That same phone
manufactured in the U.S. would
cost approximately $240. So, for
around $20 per phone, Apple has
turned over the manufacturing of
iconic American products to
others.
Apple, bring the manufacturing
back to the U.S. At least bring
back the manufacturing of the
millions of iPhones, iPads, and
iPods that are purchased in the
U.S.
Here’s the plan:
Set the manufacturing plant in a
business-friendly state. Texas
comes to mind. It’s a
right-to-work state, has a great
infrastructure, plenty of
talented labor, and lots of
energy. I bet Texas would give
Apple the land for the plant and
a few tax breaks to get the
operation going.
Offer all the iPhone, iPad, and
iPod business to a manufacturer
that would build the plant
gratis. I bet there are many
contract manufacturers that
would jump on that contract.
Hire thousands of U.S. workers,
Texans, in this case, to make
the products. I’ll give you
two-to-one odds that the quality
goes up.
So it’s going to cost 20 bucks
more per phone to bring the
manufacturing back to the U.S.
If these numbers are wrong,
Apple should tell us the cost
differential. Let’s see the
facts. Again, two-to-one odds,
it’s not much more than 20
bucks.
No doubt about it, the Mercedes
should be made in Germany, the
Ferrari in Italy, and the iPhone
in the U.S.
I believe in open competition. I
believe in fair and open trade
between countries. I believe in
globalization. I don’t believe
in protectionism. But enough is
enough! A few bucks of
protectionism would go a long
way here. And after all, it is
an American icon.
Here’s what I propose as an
added incentive for Apple to do
the right thing. I’ll write a
personal check to Apple for the
cost differential
(U.S.-manufactured versus China)
on the first 100 iPhones that
come off the production line in
Texas. I’ll bet there are a lot
of Americans that will join me.
What do you think? Would you
sponsor some iPhones to get the
manufacturing back to the U.S.?
Whether it is YES or NO, I would
like to hear your thoughts on
this subject. Send an email to
bishop@bishopinc.com.
Tell me how many iPhones you
would sponsor to get the
manufacturing back into the U.S.
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