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Re: [Fed-Talk] IPad cost comparison (UNCLASSIFIED)
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Re: [Fed-Talk] IPad cost comparison (UNCLASSIFIED)

I don't know the rules for "Made in USA", so consider this a thought exercise.

This graphic describes component costs and manufacturing cost for the iPad 2: Releases/2011-03-12_iPad2_BOM.png

Virtually none of the components are made in USA (some have never been made in USA), so estimating their costs if made here would be difficult.

The manufacturing cost of $10 probably corresponds to labor costs in China.

What if we assembled these components in USA?

Using numbers from BLS:

In 2008 (last year of roughly comparable data), Chinese urban workers cost $2.36 per hour, USA manufacturing workers cost $32.23 per hour, or about 13.6 times more.

If assembled in USA, then the price of an iPad 2 might go up $126 if passed through without markup, or 18% to 25% depending on the model.


This topic often falls under Trade Agreement Act (TAA) compliance and other procurement rules.

Recent story on that topic for iPads:

"iPhones and iPads, however, are not available on the General Services Administration's Federal Supply Schedules, which are contracts available for use by any federal agency, because of a special legal quirk. Those products are manufactured in China, which is not in compliance with the Trade Agreement Act, and so not on the schedules, said David Peters, program manager for GSA's Network Programs."

-- Rex

On Jul 29, 2011, at 9:13 AM, Pike, Michael (IHS/HQ) wrote:

I dont think its off topic... believe it or not the whole "Made In China" was a basis one of our procurement people made for not ordering macs a few years back. Apple used to have a special part number for items that would classify as "made in the usa" but I do not know if they still do that.


On Jul 29, 2011, at 10:06 AM, Blankenship, Bob J Mr CTR US USA IMCOM wrote:

Classification: UNCLASSIFIED
Caveats: NONE

Has anyone seen any data on how much cost increase on products there would
be if it was manufactured in the United States compared to overseas such as
the iPad? Would it be in the range of say 10% more or a 40% increase in
cost. Guess you might say this post is off topic but thought I would give it
a try.
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 >[Fed-Talk] IPad cost comparison (UNCLASSIFIED) (From: "Blankenship, Bob J Mr CTR US USA IMCOM" <email@hidden>)
 >Re: [Fed-Talk] IPad cost comparison (UNCLASSIFIED) (From: "Pike, Michael (IHS/HQ)" <email@hidden>)

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