Yesterday's New York Times had a very informative article focused on why iPhones are made in China, not in America. And the answer is, it isn't just about price.
The article explains: "It isn’t just that workers are cheaper abroad. Rather, Apple’s
executives believe the vast scale of overseas factories as well as the
flexibility, diligence and industrial skills of foreign workers have so
outpaced their American counterparts that “Made in the U.S.A.” is no
longer a viable option for most Apple products."
In short, at least in Apple's case, it is about quality. And continuous improvement.
For the past two decades, Americans have been misled by a chorus of triumphalist pronouncements about the decline and fall of the Soviet Union. "See," we are told,"communism failed. It can't work. Only capitalism can work, everyone knows that."
Is that so? The last time I checked, the People's Republic of China had a communist government.
So how come they are taking over production of our goods from our industries?
I think they have been paying attention not to the thoughts of Mao, but to the thoughts of W. Edwards Deming.
Read the New York Times article.
I'll share more thoughts later.
Monday, January 23, 2012
The iPhone and America's Discontents
Topic Tags:
economic development,
economics,
international,
management
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