Why does Apple manufacture the iPhones in overseas factories like China rather than US? If the handset is mane in US, the labor capital would cost an additional $65 per unit and so it would not be possible for the phone to make this change that it has done in US.
For instance, when the iPhone was scheduled to be launched, Steve Jobs wanted his team to use glass screen that is scratch resistant instead of the plastic one that has lot of scratches, his team headed to China and then Apple launched the iPhone with the scratch-resistant glass casing.
For Apple, the movement to Asia is not only for the cost but also for the other reasons like efficiency, scale and flexibility. Also the support of the government in China and to large amount of subsidies can deliver the results that are much feasible than having a factory in US.
Foxconn, the jewel of China is where the huge dormitories of the employees work in order to build the tech products of Apple and also of other companies. The facility has over 230,000 workers who work for six days in a week and also spend over 12 hours in a day at work.
The other benefit in China is that there are skilled workers and they can be acquired quickly. The other is that the engineers that China can offer cannot match with the ones offered by US.
After seeing the success of Apple, its manufacturing partners have migrated to China in order to be next to the Apple's factories. The makers of the Gorilla Glass that is scratch-resistant, Corning has also established their plants in the country.
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