“Apple executives told the New York Times, there’s a trade off, you can either manufacture in worker comfortable factories, or you can make it better faster and cheaper which requires factories that seem harsh” - “Your IPhone is made in a Sweatshop in China” (video above)
Although the Apple iPhone will continue to be Made in China, Apple recently made public their intention to make iMacs in the United States. CEO Tim Cook said Apple will spend $100 million in 2013 to shift production of the line from China next year. While that may be a very patriotic mission for Apple in an attempt to perhaps escape some of the sweatshop accusation made against it, being able to claim “Made in USA” may not really amount to much at all except differences in product quality and higher costs.
Trip Chowdhry at Global Equities Research had this to say about the matter, “Apple quality is phenomenal, but you can’t overnight produce something in a different location and expect the same kind of quality and cost structure, and that is creating anxiety”
The reality of things is that Apple is now struggling and looking for ways to boost its image.
Yesterday, December 5th was a very special day for Apple, but not in a comforting way. Apple stock lost nearly $35 billion in value as it dropped more than 6% in trading, marking Apple’s worst downfall in 4 years.
Some analysts say there’s no single reason for Apple losing its favor, while others attribute the sudden fall to a lack of cutting edge innovation which they were once known for, as Apple’s flagship products (i.e. the iPhone and the iPad ) are having to fiercely compete in markets they are now struggling in.
Michal James, an analyst at Wedbush said, “There are plenty of reasons to say the stock is done. It’s becoming a show-me story, they’re going to have to meaningfully beat estimates on the next report.”
As nearly every stock market fluctuation is based on a present or future report of some kind, a conclusion must be made that the latest reports from IDC (which we reported on just a couple of days ago) are a key factor in this sharp and sudden turn of events in Apple shares. The report basically concluded that Google Android tablets are set to dominate the tablet market, and in a nutshell, that means that the iPad is losing its top spot.
By the end of this year, Android product market share is expected to have gained nearly 4%, while Apple market share based around the same products is expected to see a nearly 3% loss, of course each percentile lost, when dealing with world-wide figures, represents tens if not hundreds of millions of users.
As of about 12pm on December 6, Apple shares gained back a bit and are up about 1.25 percent.
For more news on the controversial “Made in xyz” controversies, please see our article, “The Aakash 2: “Made In India”, No Less than “Made In America”