Why the iPhone Can't Be Made in the USA | tutor2u Business

Really interesting short video hear on why Apple chooses to manufacture their iPhones in just two centres in China.

The design work for the iPhone is done in the US. However, it is assembled in China.

Many students might suggest that the reason for using China is lower labour costs there. However, whilst labour costs are indeed significantly lower, this does not have a major impact on the production costs. The component cost per iPhone is around $220 per unit whereas assembly costs are just $5

The main reason is that Apple's key suppliers are now clustered in just two key locations. 

Clusters of supply-chain businesses help Apple to keep manufacturing costs down and allow them to sell an iPhone for a price 66% higher than the unit cost.

Why the iPhone Can't Be Made in the USA

Subscribe to email updates from the tutor2u Business

Join 1000s of fellow Business teachers and students all getting the tutor2u Business team's latest resources and support delivered fresh in their inbox every morning.

You can also follow @tutor2uBusiness on Twitter, subscribe to our YouTube channel, or join our popular Facebook Groups.

Job board

Economics Teacher

Oundle School, Oundle, Northamptonshire

From the Blog

Show more

Teaching Vacancies

Recruitment

Advertise your vacancies with tutor2u

Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.

Find our more ›

Advertise your teaching jobs with tutor2u

A New Home for tutor2u Resources

We've just flicked the switch on moving all our digital resources to instant digital download - via our new subject stores.

For every subject you can now access each digital resource as soon as it is ordered. This will always be the latest edition of each resource too (and we'll update you automatically if there is an upgraded version to use).

Simply add the required resources to your cart, checkout using the usual options and your resources will be available to access immediately via your mytutor2u account.