Issues in Digital Media

       The total production cost of a single iPhone would rise to an extra $30-$40 since the primary source of this money would come from the suppliers and transportation expenses of the shipping parts (5). This is only assuming that all the other parts of the iPhone stays the same price, the likelihood that the iPhone cost would increase is about five percent. Even so, if Apple were to move its company completely into the US, they would most likely take advantage of using robots than people (5). In addition, the argument can be made that the components of the iPhone can be made domestically but, the materials used for the iPhone contains 75 elements from the periodic table and most cannot be found in the U.S. These materials used primarily come from China such as Neodymium, Lanthanum and Hafnium (7).

       Duane Boning, an electrical engineer at MIT said that “Labor costs are a tiny fraction of cost compared to the equipment and facilities that go into a multibillion-dollar fab” (5).  This statement released demonstrates how labor cost can only affect a tiny part of Apple's company and there is more to take into consideration other than how many jobs it can produce or the cost that varies from each country. In the past, Apple has decided to set up a factory in the U.S that was estimated to create 30,000 - 50,000 new jobs (5). However, this idea never became viable because they would need access to cheap land and permission from the government. Tim Cook, the CEO of Apple put out a statement that claims that the company was already responsible for two million jobs in the U.S alone (6). Again, if the production line moved to Wisconsin, it would only create fifteen percent of the jobs that Apple has already given. This is also an addition to the transportation costs of where the different components will be shipped to and from and where it will be assembled. Another inconvenience that will likely to occur is the waiting period, in a hypothetical scenario that Apple does produce their product domestically, the factories would have to wait for the supplies to be mined, shipped and finally assembled. It would put a huge time constraint on the company that annually releases a device every upcoming year. The company would not be able to put enough product out, even when the demand for the iPhone is so high. With manufacturing their products domestically, they would be wasting resources just so they are able to produce their product in the U.S.

       Apple has also been scrutinized about where it gets the components of their products and their suppliers. While most of Apple’s suppliers do come from the United States like the exterior front of the iPhone is made from Kentucky (6); the various chips made are made from outsource material like China or Taiwan. Apple’s supply chain come from outsources from all over the world, they are able to distribute their devices and manage their company beyond borders. That is why when these infrastructures changes push Apple to produce their products only domestically, it creates an international barrier that bounds Apple in an economical and technological stance.