this post was submitted on 27 May 2025
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Yeah, that's weird.
The reason iPhones are impractical to make in the US has nothing to do with anatomy or genetics, it's purely labor costs. You can hire someone to work for very little and for very long in China, you can't do that in the US. That's it. That's the only reason.
Iqbal Masih
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Manufacturing labour costs are far cheaper outside of China but the skills aren't available. While labour costs are always a factor, the US just doesn't have enough skilled manufacturing engineers or the supply chain you get somewhere like Shenzen.
Neither did China until Apple trained them
Shenzen's supply chain is hardly all on Apple's behalf or behest.
We? Not unless the entire government decided to fundamentally change overnight. The US government would never tell conglomerates what to do, it takes it's orders from them.
Yes. But also the labour thing. Like alot.
That's because it was all outsourced to China because they utilize cheap/free labor.
If we had started doing tariffs 30 years ago we could have prevented that. Or if we enacted tariffs as part of a larger plan to slowly transition that industry back over the next 20 years, we could probably do that as well.
But just slapping a 250% tariff overnight and expecting everything to sort itself out is the kind of a plan only the orange moron could come up with.
The US had and has plenty, which is why manufacturing started in the US and migrated out once processes standardized enough to bring in less competent labor. Then labor became more competent, so more companies moved their operations there. A lot of US manufacturing engineers work with Chinese manufacturing facilities, because that's where the labor is.
If the US wants to bring manufacturing back, it needs to be cheaper to do it domestically. That means automation, better materials transportation, and cheap raw materials.
I don't see the point. Instead of bringing back manufacturing, improve education and focus on higher value work.
What's important to note is all the pieces that get screwed together are still made over there...
We can pay tariffs on all the pieces and screw them together here, but that's going to essentially have the same tariff costs as a completed iPhone.
Having someone screw the pieces together here would also raise costs due to labor costs. But they're two completely different things.
Quick edit:
Times author is legitimately named "Trip" and started out as a sports writer before pivoting to "apple, bourbon, and beer".
These days it might just be AI, but if it's a human it's almost certainly a nepo hire...
They could even waive the tariffs and it would still be impractical to assemble in the US. The only way it's practical here is with near full automation, and even then it's probably still cheaper in China.
Labor and land are just so much cheaper there.
Apple spent literal decades training workers over there, and the Chinese government busted up Apple and all their workers went to competitors...
Like, sure, someone has to assemble the screws but it didn't take Apple 20 years of investment to just teach them to use a screwdriver. It's skilled labor.
Jon Stewart had some guy that wrote a book on it a week or two ago.
There's some skilled labor, sure, but most of it is processes, and those can be replicated elsewhere. Apple brought the processes and refined them with local labor. But none of it is so special that it can't be replicated elsewhere in a couple years (assuming facilities exist).
Look at phone repair, you can go to any mall and a teenager can disassemble and reassemble your phone with only a month or so of training. Making that process efficient is the hard part, and that only requires a few skilled jobs in a factory of thousands. The vast majority of jobs in assembly are pretty unskilled.
Apple isn't in the process of spending billions over decades to train people just to install screws...
Like, fuck Apple, I've never owned a single Apple product. But they wouldn't have spent that much for so long to train people for unskilled labor.
Quick edit:
https://en.m.wikipedia.org/wiki/Apple_in_China
275,000,000,000 over five years...
That's 55 billion a year, for five years straight.
It doesn't cost that much to train someone to put a screw in
Sure, but it does cost that much to build a suite of factories complete w/ automation and whatnot. Buildings are expensive, especially high tech ones, but that doesn't mean the labor involved is particularly high skill. Components, processes, software, etc are still largely designed by highly skilled workers in western countries.
Yes, there are some skilled jobs there, but the ratio is much lower for the employees in China than domestically.
You can just keep repeating the same thing over and over again despite it being wrong...
Doesn't make it true tho, just makes other people eventually stop responding
No, but it's substantially cheaper than the US and cheap enough that moving operations isn't practical. Companies are moving to other south Asian countries, but China remains a staple for reasonably competent and reasonably cheap labor.
China also has an established, robust, and technically advanced manufacturing sector. That honestly is the biggest thing keeping manufacturing there. Things made from raw resources could be moved easily but the lower labor costs would be offset by the decreased demand due to most of their customers being back in China.
Things are even worse for anyone making something that requires manufactured components as all those suppliers are in China so now not only are they taking a hit for reduced demand, but also the headaches of having to import their components from China just to build anything. Labor would need to be ridiculously cheap compared to China for that to start looking like a good idea.
So does the US, they just do a lot less manufacturing than they used to because it became cheaper to send that to other countries. The US does a lot more design work than actual production.
Right, which is why labor moved to China in the first place. If labor gets more expensive in China, manufacturing will move elsewhere, both for components and finished products.
The only way to get large scale back to developed countries is through automation, which dramatically reduces the labor cost. But at that point, it's not creating jobs anyway, so why not do that nearer to where the raw materials are extracted anyway?
I personally don't understand why developed countries are so interested in moving manufacturing back. I understand it's not great for national security and whatnot, so it makes sense to have some domestic production capability if there's ever war in the region, but a lot of that issue can be solved by diversifying where things are produced, since war is unlikely to impact the entire supply chain if you maintain naval dominance, which the US has and they share it w/ other developed western powers.
Well it's also about supply chains. All the components are also made in China so you'd end up ordering the parts and then having to wait a month or more for them to be shipped to the US. If you want to avoid delays that means maintaining a significant stockpile of parts in the US that you may or may not ever actually use.
Sure, but I don't think supply chains are the critical factor here. You don't necessarily need local supply if you can break up delivery into small enough chunks, so whether it takes a day or a month to get a part isn't important once the flow is going smoothly. You only need local supply if there's a significant risk of disruption/delays.
Yes, it's probably a bit cheaper to assemble things closer to where they're produced, but I still think labor costs are the determining factor. US workers expect higher pay, more PTO, less hours worked per week, and more benefits, so even if all the parts were shipped in perfectly consistently, it would still be significantly more expensive to assemble iPhones in the US vs in China.
Chinese wages are not actually that low. In Beijing minimum wage is ¥26.4 which is $3.66
US federal minimum wage is $7.25
Yet for these types of jobs, nobody gets paid minimum wage, even $15/hr is probably low. What is the typical Chinese employee making for this type of work?
Also several times the minimum wage. The minimum wage jobs are the do nothing jobs like door man.
The fact is, the difference is in concentration. You have millions of workers in Shenzhen all in the same area doing similar jobs. It makes it easy to ask one factory to manufacture a thing and the one next door to assemble it.