I’m not crazy – look at apple iphone costs in shenzhen

In china business by Michael Michelini11 Comments

To support the idea that I’m not the only one leaving shenzhen, china – check out the below news i just read from yahoo finance!! Its what i have been screaming for months and months…

just last week the Chinese Yuan (RMB) was released to rise again from the US dollar – the Chinese government has just unpegged it and allowed it to go…and we all know which way the US DOLLAR is going to go, DOWN…..

IPhone Supply Chain Highlights Rising Costs in China

On Monday July 5, 2010, 8:18 pm EDT

SHENZHEN, China — Last month, while enthusiastic consumers were playing with their new Apple iPhone 4, researchers in Silicon Valley were engaged in something more serious.

They cracked open the phone’s black plastic shell and started analyzing the new model’s components, trying to unmask the identity of Apple’s main suppliers. These “teardown reports” provide a glimpse into a company’s manufacturing.

What the latest analysis shows is that the smallest part of Apple’s costs are here in Shenzhen, where assembly-line workers snap together things like microchips from Germany and Korea, American-made chips that pull in Wi-Fi or cellphone signals, a touch-screen module from Taiwan and more than 100 other components.

But what it does not reveal is that manufacturing in China is about to get far more expensive. Soaring labor costs caused by worker shortages and unrest, a strengthening Chinese currency that makes exports more expensive, and inflation and rising housing costs are all threatening to sharply increase the cost of making devices like notebook computers, digital cameras and smartphones.

Desperate factory owners are already shifting production away from this country’s dominant electronics manufacturing center in Shenzhen toward lower-cost regions far west of here, even deep in China’s mountainous interior.

At the end of June, a manager at Foxconn Technology — one of Apple’s major contract manufacturers — said the company planned to reduce costs by moving hundreds of thousands of workers to other parts of China, including the impoverished Henan Province.

full article here

All those factory suicides here in Shezhen must have been from overtime workers in the factory making those new iphones. Factory strikes, pushing for more salary to pay for increased rent, increased food costs, the list goes on and on. i spend some time on twitter searching for people talking about their backorder from apple.com saying that its currently in shenzhen china – WHAT DO YOU THINK THAT MEANS- that means apple.com is waiting for FOXCONN factory workers to be finished assembling your new iphone 4.

it has amazed me that on the SAME NEWS HEADLINES YOU SEE

  • Dont people understand, Shenzhen China is where Foxconn is, and Apple is a major customer of FOXCONN…..

    And Foxconn is under HUGE PRESSURE from Apple to get its iphones made FAST, and CHEAP as possible…..

    maybe Apple purchasing agents are even threatening that if foxconn cant make its damn iphone faster, and keeps rising its prices – then Apple will have to pull the account and assemble with another contract manufacturer.

    What do you think FOXCONN has to do.

    MANAGE BETTER!!!!!!!!!!!!!!!!!!

    And what is “manage better”

    MAKE THOSE iphones FASTER! Work overtime without pay.. ….. “oh, you’re tired, oh, you want to go back to your dorm – well you need to snap that piece SKU 534FEWE to SKU 6D4S2 or we’ll embarrass you in front of all your coworkers and hold your pay”. Something like this is obviously the affect of this economic turmoil.

    And yet no one blames Apple…..it only gets praise for how great its phone is. I am POSITIVE they are pushing hard on their supply chain to keep costs down.

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    4. Hello.

      Tell I at you I can order phone Apple Iphone 4g 32gb.???
      You have a delivery to Russia???
      I wait from you for the answer.


        1. Hey

          I’m william can you put those details on the blog so I can have a look


        2. I’d also like to see this please 🙂

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    6. How can I purchase one of these iphone’s from one of these factories in china? It sounds like it would be much cheaper, although I’m sure it would cost a pretty penny to ship it. If anyone has any info on this, could I ask you to send me a quick email?


      1. Author

        hi Tim,
        problem with buying direct from overseas is that while the factory may say they are the true factory, maybe they even are…but they may not use the same QC (quality control) practises as if Apple or the original brand company would. sometimes its even as evil as the factory using their factory defects (rejected by apple) to sell directly, at a discount.

        so when buying direct from factory overseas…..be aware….

    7. Apple should start saling disassembled Iphone 🙂 

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