Best Drupal HostingBest Joomla HostingBest Wordpress Hosting
WORLD POLICY ON AIR

World Policy Journal is proud to share our revived weekly podcast, World Policy On Air, featuring former Newsweek On Air host David Alpern and West Wing Reports founder Paul Brandus. Click here to subscribe on iTunes!

AFRICA INVESTIGATES

Africa Investigates is a new podcast from World Policy Institute in partnership with the African Network of Centers for Investigative Reporting and with funds from the Open Society Initiative for West Africa. Join Chris Roper as he showcases recent exposés into corruption across Africa. Click here to subscribe on iTunes!

FOLLOW US

 

 

AddToAny
Share/Save

iPad Econ 101

Quarter after quarter, Apple’s earnings reports manage to smash the one previous. How Apple does this has everything to do with its relationship with Foxconn. A look at the practices of the Taiwanese electronics giant--specifically their 300,000-person Shenzhen compound--and a breakdown of where your money goes when you buy an Apple product sheds a little light on just how Apple’s sausage gets made.

Many are aware that Apple goes to great lengths to protect its hyped-up marketing campaigns, and that it has a good success rate when it comes to preventing information leaks about its products. This is, in part, because Foxconn workers contracted by Apple are locked into their factory compounds (like the one at Shenzhen) for weeks at a time before each product release. When they are allowed out, workers are patted down so as to make sure they’re not smuggling out any components.

As for the company’s profit margins, for every basic iPad sold at $499 Apple keeps $297 in profit, while most of the remaining $202 goes to paying Apple staff and shipping. Foxconn is paid $11.20 (or 2.3 percent of the price) for each unit. Only when you subtract the pay cut of all of Foxconn executives and engineers in Taiwan from $11.20 do you get the per-unit pay cut of the Chinese workers involved in physically making and assembling one iPad. And the answer is...pennies. Its a useful reminder that a magical and revolutionary product at an unbelievable price is, well, not so magical.

--David Black

Image via Flickr, user myuibe

Share/Save

Post new comment
The content of this field is kept private and will not be shown publicly. If you have a Gravatar account, used to display your avatar.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image. Ignore spaces and be careful about upper and lower case.
Around WPI

 

World Policy Announces Expansion to Loyola Marymount University The World Policy and Loyola Marymount announce the World Policy Institute at LMU, a first of its kind, interdisciplinary research and academic center.

Jihad in Sub-Saharan Africa 

This paper, “Jihad in Sub-Saharan Africa: Challenging the Narratives of the War on Terror,” examines the history of Islamic movements in Africa's Sahel region to contextualize current conflicts.

World Economic Roundtable with Vicente Fox 

In this World Economic Roundtable, former Mexican President Vicente Fox discusses his current quest to make his country a hub for technology. 

 

 

 

Arts Everywhere Arts Everywhere, in conjunction with WPI's Arts-Policy Nexus, is seeking to magnify the voices of artists across the globe through its new web-based platform.

Intern at World Policy


Want to join our team? Looking for an experience at one of the most highly sought-after internships for ambitious students? Application details here.

 

Al Gore presides over Arctic Roundtable 

As the United States prepares to assume chairmanship of the Arctic Council in 2015, this inaugural convening of the Arctic Deeply Roundtables launches a vital conversation for our times. 

WEEKLY NEWSLETTER

To learn about the latest in media, programming, and fellowship, subscribe to the World Policy Weekly Newsletter and read through our archives.

THE LATEST

World Policy on Facebook