Debate Magazine

iPhone Patriotism

Posted on the 06 September 2011 by Mikeb302000
ScienceBlogs reportson the business decision by Apple to earn 64% profit on the iPhone rather than just 50%.
iPhone Patriotism
For the sake of discussion, they assumed that assembly line wages in the U.S. are ten times higher than in China. Given that Chinese production workers earn roughly $1 an hour, that is not an unreasonable assumption. The higher wages would mean that the total assembly cost per phone would rise to $65 and the total manufacturing cost would approach $238. If Apple continued to sell the iPhone for $500, the company would still earn a very respectable 50% profit margin.

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