US stocks review: iPad2 U.S. manufacturing costs will increase 415 dollars

Introduction: Apple's new tablet computer, IPad2, has just started selling around the world, triggering another round of tablet heat. The data quoted by Derek Thompson, editor of The Atlantic, in the latest column show that the price and cost components of iPad2 produced in the United States will change dramatically, but this is only a hypothesis.　　His conclusion shows that American iPad2 will cost 415 dollars more than those made in China. The following is the article passage: Apple has decided to produce an ipad 2 in China, where workers have an average weekly wage of $185. What would be the result if Apple chose to produce an ipad in the U.S., out of an economy of patriotic fervor?　　Assuming that typical American workers are as efficient as Chinese workers, and that Apple will raise the ipad's price to maintain its profit margin, IPAD2 will sell more than $1100 trillion. Analysts who came up with the data made some rough calculations: the average hourly rate for manufacturing, mining and construction in the US was $32.53 trillion, according to data from the U.S. Bureau of Labor Statistics (bureauof Labor Statistics). The Research institute ISUPPLI estimates that IPAD2 's manufacturing costs are 10 dollars, which means workers need about 9 hours to complete an ipad assembly (the cost of manufacturing in China is 1.1 USD/h).　　If the ipad's assembly and manufacturing were moved to the United States and taken at the same time, the manufacturing costs for each machine would be 292.77 dollars. Isuppli also said that the IPad2 32GB wifi+3g version is currently priced at $729/Taiwan, such a machine costs about 325 U.S. dollars, plus labor costs of 335 U.S. dollars. This makes Apple's gross margin 54% (excluding transportation and other costs). Using just the simple algorithm, if IPad2 is made in the United States, the cost of the product will be 617.77 U.S. dollars, which will make the Apple's gross margin to 15.25%!　　Apple, of course, is not doing self-sacrifice, and given Apple's relatively strong pricing power, they can raise the price of iPad2, for example, by raising the price to the level at which Apple can maintain its gross margin, and the price will rise from 729 to 1144.02 dollars! This is a rough calculation, but the rationale is well known: we chose to produce products overseas because Chinese workers paid 1/30 of the median salary for American manufacturing workers. (It should be noted that the cheap renminbi has shifted U.S. jobs to China, and the appreciation of the renminbi will not eliminate the difference in a few years. I discussed this with my colleagues yesterday and when I introduced it to him, he pointed out that if we were to produce the ipad entirely domestically, that would mean we had to import all the raw materials. , which will change the final price. The change in supply chain is not just a geographical change, it meansCost changes. If we choose to extract the metal needed to produce the ipad domestically, the price will go up, because the miners in California are paying more than the Peruvian miners. (Dorje)