Who Makes Apple Iphone China

Question 1: What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries,and particularly China? What are the potential costs and risks to Apple?

Benefits:

• Lower labor cost
• Chinese subcontractors respond very quickly to requests from Apple to scale production up and down.Example: Steve Jobs wanted  glass screen to replace plastic screen in iphone
• Easier to hire engineers in China
• Clustering together of fctories  in China

Potential costs and risks:

• Low payline workers may strike
• Long working hour may lower efficiency in future
• Mandetory overtime with little or no additional pay will demotivate workers
• Poor safety records will hamper Apple’s brand image
• The biggest risk to Apple is their idea will get copied as the country for assembly is China

2) In addition to Apple, who else benefits from Apple’s decision to outsource assembly to China? Who are the potential losers here?

In China, factories are clustered together. Many of the factories providing iPhone components for final assembly are located close to Foxconn’s assembly plant and benefit from Apple’s manufacturing decisions. The employers and employees of the hired factories in China benefit from Apple's decision to outsource, because now more jobs are available for them.

The potential losers here are people of United States, because they are losing their jobs to Chinese people, as Apple is now outsourcing in China. Despite Apple’s claim that it supports more than 250,000 jobs in the United States, it also supports an additional 700,000 jobs outside of the U.S.—jobs that possibly could have been filled by workers in the United States

3. What are the potential ethical problems associated with outsourcing assembly jobs to Foxconn in China? How might Apple deal with these?

The most obvious ethical problem with outsourcing assembly jobs to Foxconn is that they dismissed the American people as though they are not worth offering the jobs to. There are many American citizens that simply do not agree with Apple’s decision to outsource their jobs to China, because it doesn’t benefit the American people but rather only Apple.

Poor working condition: One of the biggest ethical problems associated with outsourcing assembly to Foxconn is that the employees have been targeted for their poor working conditions.