[diogenescynic]

An interesting hypothetical scenario is one where Apple had all iPhones assembled in the US. Assuming that the wage of American workers is ten times as high as those of their Chinese counterparts, the total assembly cost would rise to $68 and total manufacturing cost would be pushed to approximately $240. Selling iPhones assembled by American workers at $500 per unit would still leave a 50% profit margin for Apple. In this hypothetical scenario, the iPhone could contribute to US exports and reduce the US trade deficit, not only with China, but also with the rest of world. More importantly, Apple would create jobs for US low-skilled workers: http://www.voxeu.org/index.php?q=node/6335

[sneak]

Except that in the USA it's probably illegal to fire workers who won't work 16 hour days and it's also illegal to expose workers to toxic solvents.

OSHA and the associated regulations legislated us right out of the market.

[diogenescynic]

>Except that in the USA it's probably illegal to fire workers who won't work 16 hour days and it's also illegal to expose workers to toxic solvents.

Wait, you think this is bad?

Do you really think America can only compete on being the lowest cost manufacturer?

And the scenario shows, the iPhone could be manufactured in the US and still be profitable (50% margin).