Most of Each iPhone is Made in the USA, Study Says

In the face of recent bad publicity directed Apple’s (NASDAQ:AAPL) way over the outsourcing of jobs to Japan, information published in Forbes  states that “only” about $10 in “direct labor wages” goes to Chinese workers for each iPhone  and iPad produced.  Almost all of the products’ design, software developing, product management, marketing and such are done in the United States, and produce the majority of the company’s wage expenditure.

At first glance, the number may seem to lessen the impact of bad publicity Apple has faced in regards not only to job outsourcing but in worker quality of life in foreign countries.  An article last month published in The New York Times described how workers at the Chinese company Foxconn are treated almost as interchangeable parts who work long hours, seven days a week, at low pay, for work that has sometimes proven dangerous.  Site writers like Cult of Mac’s John Brownlee have even trumpeted this fact, stating that Apple isn’t outsourcing “the good jobs to China,” but the “undesirable, dangerous, and menial jobs to China,” and that the “only jobs they are sending abroad are the ones most people living in a modern, first-world nation don’t really want.”

Of course, Brownlee touches himself on part of the problem, that the company is willingly outsourcing “dangerous” jobs.  Furthermore, given that the company sold, by its own estimates, almost 37 million iPhones and iPads in the last quarter, that’s $370 million in wages that could have been spent domestically.  Realistically though, and its another part of the issues, that $10 in Chinese labor costs would have probably been $30-40 per device if done in the United States, meaning that the company may be denying over a billion in potential wages to American workers.

Here’s how Apple shares closed the day:

Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $468.83, up $4.86, or 1.05%. They have traded in a 52-week range of $310.50 to $464.98. Volume today was 11,189,986 shares versus a 3-month average volume of 12,396,400 shares. The company’s trailing P/E is 13.34, while trailing earnings are $35.14 per share.