If iPad 2 is Made in the U.S.

Apple's new tablet, the iPad2, has just begun to be sold globally, sparking yet another round of tablet computer fever. The data quoted in the latest column by Derek Thompson, editor of the Atlantic Monthly in the United States, shows that the price and cost structure of the iPad2 produced in the United States will change dramatically. Of course, this is only an assumption. His conclusion shows that the US-made iPad2 will cost US$415 more than China-made products.

The following is an excerpt from this article:

Apple decided to produce iPad 2 in China, where workers’ average weekly salary is $185. If it is because of an uneconomic patriotic zeal, Apple chose to produce iPads in the United States. What would be the result? Assuming that typical American workers have the same efficiency as Chinese workers, and that Apple will increase the price of the iPad to maintain the company's profitability, the iPad2 will sell for more than $1,100.

The analyst who came up with this data did some rough calculations for this purpose:

According to the Bureau of Labor Statistics, the average hourly wage for the US manufacturing, mining, and construction industries in December 2010 was US$32.53. Research firm iSuppli estimates that the iPad 2's manufacturing cost is US$10, which means that workers will need about nine hours to complete the assembly of an iPad (the manufacturing cost in China is US$1.1/hour). If the assembly and manufacturing of the iPad were to move to the United States and use the same time, the cost of manufacturing each machine would be $292.77.

iSuppli also claims that the iPad2 32GB Wifi+3G version is currently priced at US$729 per unit, so that the material cost of one machine is about US$325, plus US$335 after labor costs. This results in Apple's gross margin of 54% (excluding transportation and other expenses). Using the simple algorithm just now, if the iPad2 is made in the United States, the cost of the product will be 617.77 US dollars, which will make Apple's gross profit rate dropped to 15.25%! Of course, Apple is not doing self-sacrificing business. Given Apple's relatively strong pricing power, they can raise the price of the iPad2, for example, to raise the selling price to a level where Apple can maintain its gross profit margin. Then the product's The price will increase from $729 to $1144.02!

This is a rough calculation, but the truth is indeed known: We chose to produce products overseas because the compensation of Chinese workers is 1/30 of the median salary of US manufacturing workers. (It should be noted that the cheaper renminbi has shifted U.S. jobs to China, and the appreciation of the renminbi will not eliminate this difference within a few years.)

I discussed this issue with my colleagues yesterday. When I introduced this article to him, he pointed out that if we were to produce the iPad entirely within the United States, that would mean that we had to import all of our raw materials, and that would change the final selling price. . The change in the supply chain is not just a change in geography; it means a change in costs. If we choose to mine the metal needed to make iPads in the country, the final price will increase because the salaries of California miners in the United States are higher than those in Peru. (Doctor)