Apple, Are You Listening?
By Ron Bishop, Bishop & Associates Inc.

In the last issue of Connector Supplier, we determined that it would cost about $20 more per iPhone to manufacture it in the U.S. instead of China. We believe the cost differential is small and not a significant hurdle to overcome if the bright people at Apple apply themselves to the task. The iPhone, iPod, iPad, and Mac computer are iconic American products that should be manufactured in their country of invention and design.

As you will recall, here’s the plan we laid out for the Apple board of directors:

Step 1: Ask the Texas state government if they have a parcel of land that Texas would donate for the iPhone plant. Texas has a lot of land. We can’t imagine the state would say no to the request. After all, the state would be getting thousands of Americans employed and back on the tax rolls.

Step 2: Offer long-term contracts to selected contract manufacturers for the iPhone manufacturing business in exchange for building the plant gratis. Smart companies will want a piece of the action.

Step 3: Ask the U.S. federal government, and private citizens such as you and me, to help offset the cost differential of “Made in the U.S.A.” versus “Made in China.” In response to our last article, we received commitments from private citizens for thousands of sponsorship dollars to get iPhone manufacturing back to the U.S. We are convinced that a concerted effort to “get the message out” would bring in millions of dollars of pledges from private citizens.

Here’s how you and your colleagues in the electronics industry responded to our request for sponsorship dollars to bring iPhone manufacturing back to the U.S.

Question: Assuming it costs $20 more to manufacture an iPhone in the U.S. versus China, how many phones would you sponsor to get iPhone manufacturing back to the U.S.? 

Private Citizen Sponsorship of
 iPhone Manufacturing in the U.S.

In effect, 78% would be willing to write a personal check to Apple if iPhone manufacturing was brought back to the U.S.

Question: Would you pay $20 more to buy an iPhone if manufacturing were brought back to the U.S.? A whopping 86% said yes!

The responses to these questions speak volumes about globalization, free and open markets, protectionism, and all the other clichés that surround this very complex subject. In effect, many of us are becoming disenchanted with globalization and the seemingly mindless global search for the cheapest labor. The term “low-cost manufacturing” is starting to wear a bit thin, especially when it means high unemployment among the people that purchase most of these “low-cost manufactured” products, and declining quality among products manufactured overseas.

What’s next in the search for “low-cost labor”? U.S. fighter jets manufactured in China? Aircraft carriers manufactured in India? Or, how about manufacturing the computer systems that run all of our sophisticated military equipment in a low-cost labor zone. The U.S. protects these products so they are manufactured in the U.S. That means our military electronic products aren’t the cheapest in the world, but they are the best and we are willing to “pay up” for the best. We believe the same rule should apply to those iconic products that are closely linked to the country of invention or design. Some products should be protected so they stay in their home country. The iPod, iPad, and iPhone are three such products. But we could see the Made in the U.S.A. revival crossing over to numerous other categories as well.

Apple, do the right thing and bring them home. You invented these marvelous American products. We know you can find a way to have American workers build them.

What is your opinion on this issue? I would like to hear your thoughts either in agreement or disagreement. You may e-mail me at bishop@bishopinc.com.