Saturday, July 24, 2010

iPhone Supply Chain and the China Labor Market

This article takes a look at the supply chain behind the popular iPhone and how it is (and will be affected) by changes in the China labor market. The author starts by discussing the manufacturing labor market in Southern China, which components are the most expensive (hint: chips and memory), and the truly global nature of producing a simple device like this. The article notes that the total manufacturing cost of the iPhone is $187.51, but it retails for $600, where could the rest of that money be going... But the major theme in this story is how China's labor market is changing and how companies like Apple are having to adjust. The labor market changes cited demonstrate that the low-end assembly work in China will be getting more expensive as China attempts to steer away from it.

Read the article.

(submitted by Helen)

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