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Adding Up the iPhone

Time: 08:23 EST/13:23 GMT | News Source: Time Magazine | Posted By: Robert Stein

Apple's long-awaited white iPhone 4, which hit stores April 28, is expected to be another smash for Steve Jobs. But how much will it benefit the American economy? Though invented in the U.S., the iPhone is manufactured in China, so, ironically, iPhones sold in the U.S. add to the trade deficit with the Middle Kingdom. Yet China contributes almost nothing to the value of an iPhone; it does little more than assemble parts from elsewhere. A host of other countries, including the U.S., benefit more from producing the world's hottest gadget.

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#1 By 2960 (72.205.26.164) at Tuesday, May 10, 2011 12:43:35 PM

Phone good. Service way overpriced.

I'm thinking of going Cricket now that they have a few Android phone's available.

No contracts, $55 a month for unlimited everything (with a few caveats, of course), and I have coverage.

Need to make sure it's 100% compatible with Ford Sync first.

#2 By 1401 (216.145.133.6) at Tuesday, May 10, 2011 03:26:49 PM

Then why don't we build the iPhone over here? I'll tell you why - because our government places such a heavy tax burden on businesses that it doesn't make financial sense. Yes, people in China will work for 10 cents an hour, but that isn't the sole defining fact. Surely we could build it and ship it more efficiently and less costly here if our government weren't such an oppressive fascist institute. They'd rather focus on feeling up 6 year old girls about to board a plane...

#3 By 37 (192.251.125.85) at Tuesday, May 10, 2011 03:28:42 PM

Asian chicks are hot (over the age of 18)

#4 By 1401 (216.145.133.6) at Tuesday, May 10, 2011 03:30:12 PM

Join the TSA and feel them up.

#5 By 8556 (173.27.244.6) at Tuesday, May 10, 2011 11:34:12 PM

#2: High tax rates, insurance, legal fees for someone stubbing their toe, medical expenses and more make the West kind of a crappy place to make stuff in these days, unless it can be automated or the manufacturing art is unique. The Western world threw away their futures by giving technology to the cheapest factory/government for a short term profit boost. No R&D was needed. We gave the new manufacturing overlords all that they needed. Long term, we Westerners are in deep in a pile of crap, and debt, that is only getting deeper. There is no simple solution other then to force our "leaders" to grow a pair, and develop a conscience, and bring the jobs for goods used here back home. Of course the 1930's show that a trade war would likely follow before a new economic balance takes place. As a group of societies and cultures we must make changes that help us and no longer tolerate padding the bottom line of the filthy rich. Where to start, for real?

#6 By 15406 (209.87.228.158) at Wednesday, May 11, 2011 07:51:26 AM

#2: Considering how labour is almost always your largest cost, I would think that cheap labour is THE major reason why the iPhone isn't made in NA. Let's face it; we North Americans don't really make much any more. We can't compete. Our standard of living is so high that it's not cost-effective to build here when you can do it for a fraction of the cost overseas.

#5: Read this and weep:

http://motherjones.com/politics/2011/02/income-inequality-in-america-chart-graph&h=a5a4f

#7 By 28801 (65.90.202.10) at Wednesday, May 11, 2011 01:06:47 PM

Quite true Latch. It's not the tax burden that drives companies to China (most companies don't pay close to the 35%), its the low cost of labor. It's the same reason that call centers are outsourced to India.

And while we are on corporate tax rates, I think we should reduce it to 25% with the only deduction being the number of employees that are taxable in this country (or some other method that rewards companies for creating jobs here).

#8 By 143 (216.205.223.146) at Wednesday, May 11, 2011 10:29:37 PM

Yep, Asian chicks rock.

I would consider buying a iPhony only if naked Asian chicks assembled it.

#9 By 79018 (74.76.154.75) at Thursday, May 12, 2011 06:40:35 AM

I'm an odd user, I have an android (2.2) HTC phone (which I love), but I only use my phone on a limited basis. Currently I'm on a pay-as-you-go plan, my cost is around $5 a month, I bought my phone used on eBay for $65, I only use the the mail, text (through Google) and special features when I'm on wi-fi. I doubt I could do all that with an iPhone.

#10 By 241766 (174.114.162.14) at Friday, May 13, 2011 09:47:56 PM

Wow, rxcall just agreed with Latch. This must be a sign of the apocalypse. :-)

#3, #8: Mmmmm....Asian chicks... :-) (said in Homer Simpson voice)

The only way to bring back manufacturing jobs is to convince NA consumers to be willing to pay much more for the products they want to have. iPhones can be made in the USA, if you don't mind paying $1200 for one.

#11 By 28801 (65.90.202.10) at Monday, May 16, 2011 06:35:06 AM

#10: When it comes to politics, I think Latch an I usually agree.

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