Apple outsourcing

Apple outsourcing

1. Where ?

   • Apples products such as i phones and i pods are made in Taiwan, china, singapore, Thailand, Malaysia, South Korea, Phillipeans and Czech Republic
     • China= exports 17% of it's goods to the US => this makes there economy very reliant on the US
       • Mainly in China - in 2004 _2005 the i pods were assembled and manufactired in China.
         • However, working hours were exceeded and wrokers would work 11 days straight => this led to many suicides and has resulted in specific care for employees.
           • the conditions the workers live in are close to animal like , where they are put in overcrowed dorms, single-sex. although they're free there are still drastic measures taken such as detecors and no visting allwod.
   • The USA's economy is heavily rooted in China and other Asian rooted countries. Everything is cheaper, therefore products are made in Asian countries => this casues a loss of Jobs in America - Apple is a large company which could potentially employ many Americans , if they employed in the USA.

2. What ?

   • The process of making these devices are more complicated the we think => many different individual componenets of Apple devices are sent to all different places all over the world ( to places that can produce the best quality product.
     • the software and design is originated in USA by APPLE
       • The assembling of the devices is in Taiwan by Fowwconn company
     • video processor chip made in Korea by Samsung
     • Touch screen overlay , by Balda in Germany
     • Case, mechanical parts, camera lens, camera module, battery charger, timing crystal and passive components and cables are all made in Taiwan , however by different companiesi

3. Why ?

   • Apple outsources to build their product for less money .
     • Apple has employed 20 000 people overseas.
   • Living and owning factories in China costs roughly half of what it does in the USA
     • Chinese workers make about one tenth of what American workers make per hour - this attracts the company because they are spending less money.