Supply Chain of Iphone in China

Shenzhen:  Last month, while enthusiastic consumers were playing with their new orchard apple tree iPhone 4, researchers in Silicon Valley were engaged in nighthing more than serious. They cracked open the phones shell and started analyzing the new moldings components, trying to unmask the identity of Apples main suppliers. These teardown reports put forward a glimpse into a clubs manufacturing. What the latest summary shows is that the smallest part of Apples costs are here in Shenzhen, where assembly-line workers snap together things like microchips from Germany and Korea, American-made chips that pull in Wi-Fi or cell phone signals, a touch-screen module from Taiwan and more than 100 different components. But what it does not reveal is that manufacturing in China is about to get uttermost more expensive. seafaring labor costs caused by worker shortages and unrest, a strengthen Chinese currency that makes exports more expensive, and inflation and rising housing costs are all threatening to sharply amplify the cost of making devices like notebook computers, digital cameras and quick phones.

Desperate factory owners are already shifting production away from this countrys dominant electronics manufacturing center in Shenzhen toward lower-cost regions far west of here, even deep in Chinas craggy interior. At the end of June, a manager at Foxconn engineering science -- one of Apples major contract manufacturers -- said the company planned to reduce costs by moving hundreds of thousands of workers to other parts of China, including the impoverished Henan Province. While the labor involved in the final assembly of an iPhone accounts for a small part of the overall cost -- about 7 percent by some estimates -- analysts say most companies in Apples supply arrange -- the chip makers and battery suppliers and those making plastic moldings and printed circuit boards -- depend on Chinese factories to hold down prices. And those factories now look likely to pass along their cost... If you want to get a full essay, order it on our website: Orderessay

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