Wednesday, February 15, 2012

Apple Cost Cutting Measures


Apple Cost Cutting Article
The article I read discussed the way Apple the computer company saves money. The company saves money by designing their products in America and assembling them in China. In China the work the people do does not entail minimum wage. This means apple can produce a lot of product cheaply due to the low wage labor force. Along with cheap labor in China, Apple is able to get its many computer parts cheaply and efficiently. With various glasses, metals and antennas needed for production Apple must import them from multiple countries. Being such a wealthy and innovate company Apple is looked down upon for its exploitation of the Chinese work force. Many other successful companies like Nike and Adidas also exploit the cheap labor in China, but more recently have acted more proactively towards fair wages. Apple charges almost 500 dollars for a new I Phone 4gs without a contract. With a new 2 year contract you can get an I Phone 4gs for around 200 dollars. With the estimated I Phone costing Apple 196 dollars to produce Apple really thrives off sales of un contracted I phones. Granted Apple did generate 4.6 billion dollars revenue last year yet they still use cheap wage tactics in China. Apple claims that’s its “partners” that operate for them in China have to live up to certain conditions and standards set forth by Apple. Personally I believe that a country so heavily geared and originated in America Apple should be responsible for its Chinese exploitations. Just because the company is not working under Apple officially, Apple should hold them fully accountable of their standards. There is no excuse that because they are just partners, than that means they can exploit cheap Chinese labor. Overall I feel that the governments of both the United States and China should be more attentive to the serious labor crisis China is having. In the event both governments cal collaborate and work together to defeat the poor labor situation then the problem can be eliminated fairly easily. Unstill then there is not much that can be done because apparently most of the companies like Apple fail to admit wrongful labor practices.

1 comment:

  1. Hey Bill-
    I completely agree with you on the fact that the United States should take on absolute full responsibility of their wrongful labor practices. That not only should they pay more attention to how they perform in the work places, but to whom they give credit to because China should be given credit on also taking part in the process and production of creating the Iphone with their own resources. Therefore since the Chinese workers do most of the work in their own facilities, the United States should help with China's resources and their economic issues instead of contributing to making their issues worse then they already are. So instead of taking advantage of China's resources and buying their products and materials for cheap, the United States should also pay attention into what material the Iphone with be produced from, so they can sell it for a reasonable price.

    ReplyDelete