How U.S. Lost Out on iPhone Work
By CHARLES DUHIGG and KEITH BRADSHER January 21, 2012
When Barack Obama joined Silicon Valley's top luminaries for dinner in California last February, each guest was asked to come with a question for the president.
But as Steven P. Jobs of Apple spoke, President Obama interrupted with an inquiry of his own: what would it take to make iPhones in the United States?
Not long ago, Apple boasted that its products were made in America. Today, few are. Almost all of the 70 million iPhones, 30 million iPads and 59 million other products Apple sold last year were manufactured overseas.
Why can't that work come home? Mr. Obama asked.
Mr. Jobs's reply was unambiguous. "Those jobs aren't coming back," he said, according to another dinner guest.
The president's question touched upon a central conviction at Apple. It isn't just that workers are cheaper abroad. Rather, Apple's executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that "Made in the U.S.A." is no longer a viable option for most Apple products.
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I bet that if American buyers started looking for "Made in USA" labels again, this unwelcome part of Mr. Jobs' legacy would vanish. I also bet that if our Congress imposed the same tariffs on imported Iphones that other countries impose on American goods, the price advantage of making things overseas would also vanish.
Bill Horne Moderator