Question posted by Jairus1 on March 26th, 2024
Why Do Most Of Iphones Written 'made By Apple In California And Assembled In Chi
Current Answers
Answer #2: Posted by SonuKumar on March 27th, 2024 9:24 PM
Design and Innovation: Apple's core expertise lies in design, research & development, and software creation. The company's headquarters in California remain the hub for conceptualizing and designing iPhones with superior user interfaces and technology.
Manufacturing Cost and Efficiency: China has a massive, well-established manufacturing infrastructure with a highly skilled workforce. Outsourcing the assembly process to China allows Apple to:
Reduce labor costs: Wages in China are significantly lower than in the US.
Access a large pool of skilled labor: China offers a vast supply of assembly line workers.
Scalability: Chinese factories can rapidly scale production to meet the massive demand for iPhones.
Supply Chain Optimization: Many of the components used in iPhones (chips, displays, etc.) are also manufactured in Asia. Having final assembly near these component suppliers streamlines the process, reducing shipping costs and time to market.
Tax Benefits: There can be tax benefits for companies utilizing global manufacturing and supply chain strategies.
It's important to note:
Apple is not alone in this practice. Many tech companies follow a similar model for efficiency and cost reasons.
The value added by design, engineering, and profits largely remain in the US.
Let me know if you have any more questions!
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Regards,
Sonu
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