A proposal for Apple that puts Americans to work
TweetFollow Us on Twitter

A proposal for Apple that puts Americans to work

The following is an opinion editorial provided by Long-Stanton Group CEO, Dan Cunningham. It was originally published in the Cincinnati Enquirer on Sunday, July 8, 2012:

I have a Billion Dollar idea for Apple: build an iPhone plant in Cincinnati and eventually other U.S. cities to supply the U.S. market with iPhones.

This would yield a billion dollars in additional profit to Apple because of the assurance of long-term sustainable product dominance for Apple, the ability to manufacture ‘mass customized' iPhones in the U.S., and the removal of 35 days of rapidly changing inventory in transit from China to the U.S. This projected profit is based on the forecast of 44 million iPhones to be sold in the U.S. in 2012 (11.6 million in 2011 Q4) and increasing the profit by $23 each.

Because the U.S. market is demanding such a high number of units of iPhones, the plant that I am proposing would be completely automated, and highly flexible to the point that there would be no labor advantage to making the iPhone in China versus the U.S. Even with the automation, a plant in Cincinnati would create many good, long term US jobs at Apple and its suppliers.

One might ask "What about the critical supply chains that are needed to make and innovate the iPhones?" which was also asked by Charles Duhigg and Keith Brasher of the New York Times in their report "How the U.S. Lost Out on the iPhone Work." Building a flexible supply chain is a good strategy as well as good business. It is helps in building a moat around your business and keeps competitors at bay.

Toyota is an excellent example of a company that has enjoyed tremendous success by building its cars in the US with a domestic supply chain. I submit to you that creating a critical supply chain in Cincinnati or the U.S. will not be a problem. For example, if you need a shorter screw made you can get one in Cincinnati in three hours. (Duhigg reported that it would take six hours in China.) Highly flexible supply chains are the hallmark of U.S. Manufacturers.

Full disclosure: Long Stanton is a 150 year old manufacturing company with plants in Cincinnati and China. As we are the ones writing the checks in our various locations, we are very familiar with the constantly fluctuating manufacturing costs including labor, material and the supply chain cultures and the ability to respond rapidly in both the U.S. and China.

In October 2011, it was estimated by Isuppli.com that the labor cost to make an iPhone was $8.00 each, plus a material cost of $188. Since that estimate came out the Chinese manufacturer, Foxconn has increased its employee wages by 16%-25%.

Several commentators on Apple's manufacturing in China, including Mr. Duhigg, have brought forward an estimate of $10-$65 additional cost per phone if it was made in America versus China. In my experience in both countries, I would put the cost increase at closer to $10 each. When you factor in long term sustainability, I can argue it costs less in the U.S. than China.

Regarding Apples long-term success, Harvard Business School Professors Gary Pisano and Willy Shih warn that companies which separate R&D from critical supply chains and manufacturing are putting their businesses at risk. They conclude "Where major processes are evolving rapidly, and can have a huge impact on the product… the risk of separating design and manufacturing are enormous…" To simplify, Apple has been running through a rain storm and not getting wet.

My suggestion: let the China factories serve the China markets, let the new U.S. factories serve the U.S. markets, etc.

If Cincinnati can build jet engines for the Boeing 787 Dreamliner (General Electric) for the world and market Tide (plus many other Proctor and Gamble products), then Cincinnati can be depended upon to manufacture and market the iPhones to the U.S.

Apple is undoubtedly thinking about its next move. In February 2011, President Obama asked Steve Jobs, "What would it take to make iPhones in the United States?" Jobs answered "Those jobs aren’t coming back." I respectfully submit it doesn’t have to be that way. Building iPhones in the U.S., to increase Apples profit and insure its long-term success, is an idea whose time has come.

Daniel B. Cunningham is the president/CEO of the Long-Stanton Group, a 150 year old family business that was named Family Business of the Decade in 2009, in Cincinnati, Ohio. You can contact him at danc@longstanton.com .

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Latest Forum Discussions

See All

Tokkun Studio unveils alpha trailer for...
We are back on the MMORPG news train, and this time it comes from the sort of international developers Tokkun Studio. They are based in France and Japan, so it counts. Anyway, semantics aside, they have released an alpha trailer for the upcoming... | Read more »
Win a host of exclusive in-game Honor of...
To celebrate its latest Jujutsu Kaisen crossover event, Honor of Kings is offering a bounty of login and achievement rewards kicking off the holiday season early. [Read more] | Read more »
Miraibo GO comes out swinging hard as it...
Having just launched what feels like yesterday, Dreamcube Studio is wasting no time adding events to their open-world survival Miraibo GO. Abyssal Souls arrives relatively in time for the spooky season and brings with it horrifying new partners to... | Read more »
Ditch the heavy binders and high price t...
As fun as the real-world equivalent and the very old Game Boy version are, the Pokemon Trading Card games have historically been received poorly on mobile. It is a very strange and confusing trend, but one that The Pokemon Company is determined to... | Read more »
Peace amongst mobile gamers is now shatt...
Some of the crazy folk tales from gaming have undoubtedly come from the EVE universe. Stories of spying, betrayal, and epic battles have entered history, and now the franchise expands as CCP Games launches EVE Galaxy Conquest, a free-to-play 4x... | Read more »
Lord of Nazarick, the turn-based RPG bas...
Crunchyroll and A PLUS JAPAN have just confirmed that Lord of Nazarick, their turn-based RPG based on the popular OVERLORD anime, is now available for iOS and Android. Starting today at 2PM CET, fans can download the game from Google Play and the... | Read more »
Digital Extremes' recent Devstream...
If you are anything like me you are impatiently waiting for Warframe: 1999 whilst simultaneously cursing the fact Excalibur Prime is permanently Vault locked. To keep us fed during our wait, Digital Extremes hosted a Double Devstream to dish out a... | Read more »
The Frozen Canvas adds a splash of colou...
It is time to grab your gloves and layer up, as Torchlight: Infinite is diving into the frozen tundra in its sixth season. The Frozen Canvas is a colourful new update that brings a stylish flair to the Netherrealm and puts creativity in the... | Read more »
Back When AOL WAS the Internet – The Tou...
In Episode 606 of The TouchArcade Show we kick things off talking about my plans for this weekend, which has resulted in this week’s show being a bit shorter than normal. We also go over some more updates on our Patreon situation, which has been... | Read more »
Creative Assembly's latest mobile p...
The Total War series has been slowly trickling onto mobile, which is a fantastic thing because most, if not all, of them are incredibly great fun. Creative Assembly's latest to get the Feral Interactive treatment into portable form is Total War:... | Read more »

Price Scanner via MacPrices.net

Early Black Friday Deal: Apple’s newly upgrad...
Amazon has Apple 13″ MacBook Airs with M2 CPUs and 16GB of RAM on early Black Friday sale for $200 off MSRP, only $799. Their prices are the lowest currently available for these newly upgraded 13″ M2... Read more
13-inch 8GB M2 MacBook Airs for $749, $250 of...
Best Buy has Apple 13″ MacBook Airs with M2 CPUs and 8GB of RAM in stock and on sale on their online store for $250 off MSRP. Prices start at $749. Their prices are the lowest currently available for... Read more
Amazon is offering an early Black Friday $100...
Amazon is offering early Black Friday discounts on Apple’s new 2024 WiFi iPad minis ranging up to $100 off MSRP, each with free shipping. These are the lowest prices available for new minis anywhere... Read more
Price Drop! Clearance 14-inch M3 MacBook Pros...
Best Buy is offering a $500 discount on clearance 14″ M3 MacBook Pros on their online store this week with prices available starting at only $1099. Prices valid for online orders only, in-store... Read more
Apple AirPods Pro with USB-C on early Black F...
A couple of Apple retailers are offering $70 (28%) discounts on Apple’s AirPods Pro with USB-C (and hearing aid capabilities) this weekend. These are early AirPods Black Friday discounts if you’re... Read more
Price drop! 13-inch M3 MacBook Airs now avail...
With yesterday’s across-the-board MacBook Air upgrade to 16GB of RAM standard, Apple has dropped prices on clearance 13″ 8GB M3 MacBook Airs, Certified Refurbished, to a new low starting at only $829... Read more
Price drop! Apple 15-inch M3 MacBook Airs now...
With yesterday’s release of 15-inch M3 MacBook Airs with 16GB of RAM standard, Apple has dropped prices on clearance Certified Refurbished 15″ 8GB M3 MacBook Airs to a new low starting at only $999.... Read more
Apple has clearance 15-inch M2 MacBook Airs a...
Apple has clearance, Certified Refurbished, 15″ M2 MacBook Airs now available starting at $929 and ranging up to $410 off original MSRP. These are the cheapest 15″ MacBook Airs for sale today at... Read more
Apple drops prices on 13-inch M2 MacBook Airs...
Apple has dropped prices on 13″ M2 MacBook Airs to a new low of only $749 in their Certified Refurbished store. These are the cheapest M2-powered MacBooks for sale at Apple. Apple’s one-year warranty... Read more
Clearance 13-inch M1 MacBook Airs available a...
Apple has clearance 13″ M1 MacBook Airs, Certified Refurbished, now available for $679 for 8-Core CPU/7-Core GPU/256GB models. Apple’s one-year warranty is included, shipping is free, and each... Read more

Jobs Board

Seasonal Cashier - *Apple* Blossom Mall - J...
Seasonal Cashier - Apple Blossom Mall Location:Winchester, VA, United States (https://jobs.jcp.com/jobs/location/191170/winchester-va-united-states) - Apple Read more
Seasonal Fine Jewelry Commission Associate -...
…Fine Jewelry Commission Associate - Apple Blossom Mall Location:Winchester, VA, United States (https://jobs.jcp.com/jobs/location/191170/winchester-va-united-states) Read more
Seasonal Operations Associate - *Apple* Blo...
Seasonal Operations Associate - Apple Blossom Mall Location:Winchester, VA, United States (https://jobs.jcp.com/jobs/location/191170/winchester-va-united-states) - Read more
Hair Stylist - *Apple* Blossom Mall - JCPen...
Hair Stylist - Apple Blossom Mall Location:Winchester, VA, United States (https://jobs.jcp.com/jobs/location/191170/winchester-va-united-states) - Apple Blossom Read more
Cashier - *Apple* Blossom Mall - JCPenney (...
Cashier - Apple Blossom Mall Location:Winchester, VA, United States (https://jobs.jcp.com/jobs/location/191170/winchester-va-united-states) - Apple Blossom Mall Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.