Do you know who Makes the Apple iPhone?

Do you know who Makes the Apple iPhone?

In my previous post Waiting in Line for iPhone X: Why do I do that, I mentioned that there are a lot of people get the line in front of an Apple store annual year for launching the new iPhone. Do you know who makes the iPhone? It is worth pointing out that 90% parts of iPhone are manufactured from other countries. While memory is produced by Korea and Japan, the chip is produced from Europe. Foxconn – the Taiwanese firm is in charge of final assembly in China. Outsourcing is the effective way to reduce the cost such as labor cost, material cost and so on. Moreover, Apple can leverage the labor skills from other countries to reinforce the quality of iPhones.

However, the most reason to assemble the iPhone in China because Chinese subcontractors to adapt rapidly to Apple’s requirements that Apple can increase the volume easily. For example, in 2007, Steve Jobs wanted to use the glass screen to replace the plastic screen on iPhone. Since this is a last-minute change, it was difficult to look for the relevant outsourcing company. There were a lot of companies around the world to join this important bid that the winner is a Chinese factory. This company offered the products that met all Apple requirements.

Another significant advantage of China for Apple is that it is easy to look for skillful engineers in China within a short time. Apple calculated that more than 8,700 industrial engineers were needed to oversee and guide the 200,000 assembly-line workers involved in manufacturing the iPhone. It would take about 9 months to find that many engineers in the US while it took 15 days in China.

However, there are some issues that Apple are facing when they leverage the outsourcing companies. Firstly, there are some Apple’s subcontractors are claimed that they provide a poor working condition to employees such as low wage, long working hours, unsafe working condition and so on. Moreover, some companies cut off the benefit to employees such as over-time payment and health insurance.
Since Foxconn is the main subcontractors of Apple, there is no doubt that it is difficult to balance between the employee benefits and working condition. Moreover, it is worth pointing out the different culture between China and America. Chinese employees do not prefer to fight for their rights because they not only respect their employer but also are afraid of getting fired. Instead of raising their voice, they prefer to keep silent and work hard. In order to deals with these issues.

Additionally, Apple executives say that there is an unresolved tension within the company; executives want to improve working conditions within the factories of subcontractors such as Foxconn, but it conflicts with crucial supplier relationships or the fast delivery of new products. Apple claims that they will fund money to reinforce Foxconn working conditions. Additionally, Apple focuses to create the transparency when they make the supplier bid that people can get the list of Apple suppliers. Moreover, child labor is a significant concern that Apple does not allow Apple’s subcontractors to hire the children.

Author

Amy Nguyen

Amy Nguyen

I feel happy to share my experiences with you about Travel - Food - Life around the world. I hope to inspire you to Live-Love- Laugh :)

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