From: T i m on
On Thu, 27 May 2010 09:40:21 +0100, chris <ithinkiam(a)gmail.com> wrote:

>On 27/05/10 08:44, T i m wrote:
>> My thoughts ... (and this is ignoring corporate greed etc), if it cost
>> �50 to assemble an iPhone in China and �75 to have it assembled in the
>> UK, would that just knock Apples profits by �25?
>
>I don't have any hard figures, but I'd imagine the cost difference is
>*much* larger than that. Something in the region of �20 in Taiwan and
>�200 in the UK. Don't forget we have unions, pensions, NI, sick pay,
>maternity/paternity pay, corporation tax, health and safety, etc. that
>all add to the cost of manufacturing any product here.

Ok.
>
>There's a reason why Dysons are much more expensive than similar
>products. It's partly the technology and partly the higher costs of
>being a UK-based company.

I don't buy Dyson (I get them from Freecycle or the tip). Where are
Miele made? ;-)
>
>> If so, wouldn't it be better (ethically) for it to be that way or is
>> it still better to provide this sort of work to someone in the far
>> East even with their known working conditions?
>
>It comes down to what the consumer is prepared to pay, though isn't it?
>It's taken a long time for Fairtrade to be accepted by the general
>consumer and not just a niche who care about this kind of thing. For
>coffee the price difference is very small. For something like an iPad
>the difference would be huge.

Then maybe that's how it should be? Is the cost of a sharks life
'right' because someone just wants a bowl of sharks fin soup?
>
>Apple products are already perceived as being expensive, but people
>accept it because they are better quality or a better 'cool factor'.
>Push the price up even more and the market disappears.

I think some of the market would disappear yes, but if someone wants
something and they 'value' the features you mention then I think they
will pay 'the price'. What's more I think they could even sell 'The
price', if they can add the 'Fairtrade' ideals in their marketing?
>
>I have to agree that Apple is being unfairly singled out here. It's the
>cheap as chips manufacturers that need to be targetted, as they are the
>ones driving prices and standards down. e.g. Primark and George(a)Asda
>have been criticised for the labour they use, but not the likes of M&S.

Agreed but like I said, I'm not sure there isn't some slack in the
system when I can buy a new phone with camera for �9.99 on PAYG?

If the problem in this instance (Foxconn) isn't the actual working
conditions or wages but a managerial issue, how much would Apple have
to add to the price of an iPhone to be able to pay to have their
people re-trained or to keep someone on-site all the time?

(Whilst George suggests Apple may be better than some they may be in a
better position to put some leverage on <suppliers> to do better. More
so than people selling phones or motherboards for a fraction of the
price of Apple products etc).

Apple buyers may also typically be more able to afford such (as has
been the case for decades).

Cheers, T i m

From: T i m on
On Thu, 27 May 2010 10:12:15 +0100, Jim <jim(a)magrathea.plus.com>
wrote:


>> Hmm, but on something that is already 'expensive' would that really be
>> an issue?
>
>No, especially as they could absorb some of that (their profit margins tend
>towards 30%). Additionally they could play the 'locally made' card for all
>they're worth, which would be great advertising for them.
>
>The fact that they don't tells me that it would cost a lot more than �25
>
Maybe I'm just more more cynical then. ;-)

Cheers, T i m
From: Woody on
Jim <jim(a)magrathea.plus.com> wrote:

> On 2010-05-27, Jim <jim(a)magrathea.plus.com> wrote:
> >>>
> >>>and probably lots and lots of others.
> >>
> >> Yup. ;-)
> >>
> >> There is nothing any of those supply that is worth someones life.
> >
> > True, but you have to remember that Foxconn is _huge_. We're talking about a
> > company that has a workforce with numbers close to that of a city. The
>
> I've just checked - according to CNN they employ close to half a million
> people (486,000 as of 2009).
>
> <http://money.cnn.com/magazines/fortune/global500/2009/snapshots/11204.html>

In which case 10 suicides is a remarkably low figure as it is a long way
below average

--
Woody
From: T i m on
On Thu, 27 May 2010 10:18:13 +0100, Jim <jim(a)magrathea.plus.com>
wrote:


>>
>> There is nothing any of those supply that is worth someones life.
>
>True, but you have to remember that Foxconn is _huge_. We're talking about a
>company that has a workforce with numbers close to that of a city. The
>suicide rate may well be just the national average. And again, remember
>we're dealing with a culture that regards losing face with much more
>seriousness than we do.
>
Oh indeed, put into proportion etc, however, because Apple is selling
'Quality' (at a price) I think it might have made itself more of a
target here (as you say, the same factory makes loads of goods for
other Co's yet only Apple were mentioned on the news I saw).

No one is interested / bothered about a company making PC motherboards
that retail for �27.

Cheers, T i m
From: T i m on
On Thu, 27 May 2010 10:23:39 +0100, Jim <jim(a)magrathea.plus.com>
wrote:

>On 2010-05-27, Jim <jim(a)magrathea.plus.com> wrote:
>>>>
>>>>and probably lots and lots of others.
>>>
>>> Yup. ;-)
>>>
>>> There is nothing any of those supply that is worth someones life.
>>
>> True, but you have to remember that Foxconn is _huge_. We're talking about a
>> company that has a workforce with numbers close to that of a city. The
>
>I've just checked - according to CNN they employ close to half a million
>people (486,000 as of 2009).
>
><http://money.cnn.com/magazines/fortune/global500/2009/snapshots/11204.html>
>
Feck.

Mind you, Tesco are trying to go the same way over here aren't they
and the concept has been in use for quite a while throughout the
world.

Cheers, T i m
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