Tuesday, June 28, 2011

Apple Computer vs. US Labor

                                          Apple Computer  vs.  US Labor    
                               (Apple 100)   (US Worker 0)
                  Where has the morals & loyalty gone when it come to US companies!
                   Why does the American consumer give Apple computers a free ride?
                   “Unites State represent 48% of Apple Computer Sale but 0% of their  
                   product is manufacture In the country of originate even though in 2011 
                   Apple will have 40 billion dollars in US sales”

Apple computer made huge profit last year and the year before and the year before that so why is it that apple sale 42 % their overalls sale come from the US market but yet they do not manufacture any of their product in the US?
Many companies like Apple computer will express to it customer how they very friendly to the environment but how friendly are they to the US work force, not very.  98 % of apple products are manufacture of shore even though they could subcontract some manufacturing in the US. Let take a look at Apple own 2011 quarterly statement and overall profit.
CUPERTINO, California—April 20, 2011—Apple® today announced financial results for its fiscal 2011 second quarter ended March 26, 2011. The Company posted record second quarter revenue of $24.67 billion and record second quarter net profit of $5.99 billion, or $6.40 per diluted share. These results compare to revenue of $13.50 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share, in the year-ago quarter. Gross margin was 41.4 percent compared to 41.7 percent in the year-ago quarter. International sales accounted for 59 percent of the quarter’s revenue.
Apple sold 3.76 million Macs during the quarter, a 28 percent unit increase over the year-ago quarter. The Company sold 18.65 million iPhones in the quarter, representing 113 percent unit growth over the year-ago quarter. Apple sold 9.02 million iPods during the quarter, representing a 17 percent unit decline from the year-ago quarter. The Company also sold 4.69 million iPads during the quarter.
“With quarterly revenue growth of 83 percent and profit growth of 95 percent, we’re firing on all cylinders,” said Steve Jobs, Apple’s CEO. “We will continue to innovate on all fronts throughout the remainder of the year.”
This is very nice for Apple but for hundreds of thousands of out of work California is does not help them at all. This perception that by having a few hundred key research and development positions at their Cupertino location in Northern California is a godsend. In the last five years Apple Computer has made almost $100 billion and 50 billion of this has come directly from North American sales. How much of this income actually goes back into the California economy as a whole. Yes for the key positions are held by administrative staff R&D personnel and technical, quality assurance, testing and key vendors that are contracted by Apple Computer their wages are good and their benefits are even greater. But this does not even put a dent in the overall unemployment rates in Northern California and the greater US.
If Apple Computer took just a fraction of the profits made from it US, consumers and  put it in to production of key components for just a few of their product line they could employ a few thousand US employees at a reasonable price with a guaranteed of return on their investment. But simply put between Steve Jobs, Apple Computer, board members and stockholders they are  simply too greedy and nearsighted to look at the long-term benefits of manufacturing products in the United States.
Apple Computer could even market these products as manufactured and produced in the United States this along could bring in a high price at the retail.  This product lines and could charge a higher fee based on fit and finish and being manufactured in the United States.
I don’t want anyone to misconstrue this article as signaling out Apple Computer in particular, because this is not the case. Apple Computer is just one of the symptoms of cancer eating away at the very foundation of the American way of life.
  Many employment experts argue that the United States is a service oriented society based on providing technical expertise and services to the world at large. This is a misleading and basically a cop-out used to distract the real issue at hand. Greed and corporation’s attitude of maximizing profit at all cost. This is one of the main reason that manufacturing positions have been outsourced to developing nations with infrastructure and minima technical skills to produce the products with little environmental restriction and even less labor guidelines for corporations to exploit.
Pronoun an article I had outlined the fact that the last five years Apple Computer has made over $100 billion in sales throughout the world and 48 billion of it coming from US market alone. Please explain to me how Apple Computer couldn't simply manufacture and produce 15 to 20% of its products sold in the United States. Apple Computer would still make a huge profit on every item manufactured and then sold in the US; this would also save on transportation cost. The Corporation could then capitalize on the fact that they are manufacturing and producing high-tech consumer product in the United States by American workers. This does not even address the fundamental moral obligation that Apple Computer Corporation has to the US consumers that has made it possible for Apple Computer to be a global technology leader in consumer electronics.
Instead their rather ship 100% of their production to mainland China, Singapore, Korea and soon India not because these workers produce better products and are more capable of manufacturing consumer electronics than their American counterparts. It’s because many of these manufacturing facilities that subcontract for Apple Computer are willing to do whatever it takes to please Steve Jobs and Apple Computer at a cost of the average Chinese worker. I don't believe in global economy that one single country can harbor 100% of the manufacturing of a multinational corporation but I do believe that multinationals have an obligation to their nation of origin to maintain 20% to 40% of their manufacturing capacity home nation.
This article argues it befit the US to have manufacturing Job somewhere else; you come to your own decision  and make up your own mind
One last question: “Home happy would the chines people be if Altadox and other giant Chinese electronic manufacturing company” out sources their manufacturing capacity to United State and told the laid off out of work employee. It better if we only have high payed engineer in china and sent the job to the United State but please don’t stop buy our product it good for China.
                                 How happy would the chine's worker be?
Made in USA  Made in China

In the Journal of International Commerce and Economics' current issue, there's an excellent article titled "Innovation and Job Creation in a Global Economy: The Case of Apple’s iPod" (full paper here). Here's the paper's abstract:
"Globalization skeptics argue that the benefits of globalization, such as lower consumer prices, are outweighed by job losses, lower earnings for U.S. workers, and a potential loss of technology to foreign rivals. To shed light on the jobs issue, we analyze the iPod, which is manufactured offshore using mostly foreign-made components.  In terms of headcount, we estimate that, in 2006, the iPod supported nearly twice as many jobs offshore (27,250, see chart above) as in the United States (13,920). Yet the total wages paid in the United States ($746 million, see chart above) amounted to more than twice as much as those paid overseas ($318 million). Driving this result is the fact that Apple keeps most of its research and development (R&D) and corporate support functions in the United States, providing thousands of high-paid professional and engineering jobs that can be attributed to the success of the iPod. This case provides evidence that innovation by a U.S. company at the head of a global value chain can benefit both the company and U.S. workers."

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