It is not in the best interest of Apple or the world if Apple started to produce and

assemble all products in the United States. In fact, it would be very harmful to the
company and the rest of the world if Apple began making all products in the United
States. Not only is it unlikely that that everything can be moved to the United
States, costs would be raised, profits would hit the ground, and the company would
be on a slippery slope which only ends in bankruptcy.

The first thing that must be established are Apples priorities. The main priority of
Apple is not to make their products in the most moral way. It is not to make their
products in the way that makes their workers happy. The main priority of Apple is to
make returns to its shareholders. So, the main priority of Apple is to, within the
bounds of the law, garner the highest profit. As Apple has done for many years, the
best way to do this is to employ workers, through Foxconn, in China. This way, costs
are cheap, therefore the product is cheap to consumers, and thus more people buy
it, which leads to the $8.2 billion profit that was had in the fourth quarter of 2012.
[1] This is the single objective of Apple. To make the highest profit possible within
the law, which it has been doing successfully for some time by employing
thousands of assembly workers, engineers, and others in China. In other words, last
quarters profit was obtained by assembling and producing all products through
Foxconn, China, and in other countries.

On the other hand, by producing and assembling all products in America, this kind
of profit, if any, is not attainable. The first thing that would hinder profit is the cost
to hire workers. Workers of Foxconn are not paid nearly as much as an American
worker who does the same work. No, this is not fair. But neither is life. And the way
to an $8.2 billion profit is not always the most moral or the happiest for everyone.
But that is not the point of a corporation. As previously stated, the point is to get a
high profit. An American would get paid exponentially more than a worker at
Foxconn or an American engineer. Costs go up. And to compensate, Apple will have

to raise the price of all its products to consumers. This way, less people will buy
iPhones. Less people will buy Macs. Less people will iPods. And the list goes on.
Just in the same way, profits would also go down if Apple made all of its products in America
since American workers cannot work nearly as many hours as a Foxconn assembly worker
can. Foxconns longer hours allow more Apple products to be created quickly and in a
greater supply. If Apple makes all of its products in America, then there would be a deficiency
of Apple products. Less iPhones, iPods, iPads, Macs, and so on and so forth. This limited
supply would also lead to a rise in price, which would, as previously mentioned, decrease
sales.

It may not even be possible for this motion to be practically acted out. Apple has over
700,000 workers employed by Foxconn assembling and producing Apple products alone. [2]
There may not be that many people willing to do that work, which would decrease
production even further. But, it is possible, if not likely, that of the millions of unemployed
people, 700,000 want to make iPhones and the like. And yet, even Steve Jobs is quoted as
affirming the implausibility of bringing all production to the US. [3] Steve Jobs has stated that
he needed at least 30,000 highly skilled engineers to make Apple products. [4] Those jobs
are few and far between in the United States. Something the US does not like to talk about is
its lack of skilled engineers. Foxconn can provide those engineers.

But let us suppose that it is morally corrupt for Apple to employ people with long hours and
strenuous work. First of all, if Apple stopped employing Foxconn overnight, then another
company would probably do the same thing. Foxconn assembles 40% of the worlds
electronics [5]. Apple pulling out would just make room for another company to do the exact
same thing. This is not Apples problem. If this is such a bad problem, then President Obama
should take the initiative of raising the standards of labor laws in China, similar to the work
of Jimmy Carter in the 1970s.

And if employing Foxconn is too morally bankrupt to tolerate, then sure, let us move some of
the production and assembly to America. But certainly not all. By moving every single

instance of production and assembly in other countries and continents, the cost would be too
great. The companys costs would rise. The products costs would rise. The shareholders
would be furious. Apple may even go under. Therefore, moving all of the production and
assembly of Apple products would be ultimately detrimental to the company and to the
world economy.

[1] http://www.apple.com...
[2] http://online.wsj.com...
[3]http://www.nytimes.com...
[4] http://www.politifact.com...
[5] http://business.time.com...

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Pro

Apple is a company that provides products that are unique to the industry. Their
computers have software unlike the traditional PC, and (as of now) have no viruses
that could potentially harm owners. MP3 players and iPods have become practically
synonymous, as well as iPads and tablets. Apple has created products that people
want. Despite the fact that most of their products cost much more than comparable
items on the market, Apple stock values have continued to climb throughout 2012.
[1] Apple has created for itself its own bubble by continuing to improve upon and
update their products, and making the brand a household name. The company has

been playing a price game since its founding, which has allowed it to grow to the
capacity that it has. Even though the products never go on sale, by creating a web
of products that complement each other and strategic pricing, sales continue to
stay high. [2] Although insourcing the production and assembly of Apple products
would cause the prices of Apple to rise, the following that Apple has acquired and
the uniqueness of their products would keep their sales. This would also appeal to
people within the United States, especially as the debate over insourcing v.
outsourcing has become so prevalent, and potentially attract buyers.

In recent years, it has become less profitable to outsource production and assembly
to countries such as China. Recently, Apple has announced that they will start
manufacturing a new line of Macs in the US instead of China. China"s wages have
been going up, making it less cost effective to have Apple products manufactured
there. Apple has stated that the actual production and assembly of their products
has very little to do with the production cost. The biggest part of that cost is the
chips and technology that go in their devices, the most of which are made and sold
in the United States anyway. [3]

Bringing back jobs to the United States would potentially boost the country"s
economy, allowing for more potential profits, opportunities and investors.

Ultimately, moving the production and assembly of Apple products to the United
States could help Apple, by gaining a wider consumer base, and the United States
as a whole, as the insourcing of one of the country"s most wealthy companies
would provide a large boost to the economy.

[1] http://www.macrumors.com...

[2]http://www.msnbc.msn.com...

[3]http://finance.yahoo.com...
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Con

Although insourcing the production and assembly of Apple products would cause
the prices of Apple to rise, the following that Apple has acquired and the
uniqueness of their products would keep their sales. This would also appeal to
people within the United States, especially as the debate over insourcing v.
outsourcing has become so prevalent, and potentially attract buyers.

The key word in this passage is potentially. There is no guarantee. On the other
hand, as is shown all throughout Pros first paragraph, Apples stock has been
rising, as well as profits, for years. Apple knows that it will make money if it
continues doing what it is doing today. There is no promise that Apple will do as
well or better if it insourced nearly every job. But, there is evidence to suggest,
which is lacking on Pros side, that Apple will continue making more money by
having thousands of workers in other countries. As I previously stated in my other
speech, it is not in the best interest of Apple or the world if Apple started to
produce and assemble all products in the United States.

In recent years, it has become less profitable to outsource production and

assembly to countries such as China. Recently, Apple has announced that they will
start manufacturing a new line of Macs in the US instead of China. China"s wages
have been going up, making it less cost effective to have Apple products
manufactured there.

It has becoming less cost effective to produce products in China, but not less cost
effective than in America. It will be a very long time where the wages of any
Chinese Foxconn worker exceed or equal that of an American worker. But, the Pro
argument is taking something out here. Pro wants to move every last instance of
production and assembly to the United States. Not just the new line of Macs.

Bringing back jobs to the United States would potentially boost the country"s
economy, allowing for more potential profits, opportunities and investors.

I will quote myself from earlier. The key word in this passage is potentially. There
is no guarantee. What if Apple starts losing profits, and the company goes
bankrupt because they moved every instance of production and assembly to the
US? What if Apple starts raising the prices of all of its products, and no one buys
them anymore? What would that do to the economy? Opportunities? Investors?

Ultimately, moving the production and assembly of Apple products to the United
States could help Apple, by gaining a wider consumer base, and the United States
as a whole, as the insourcing of one of the country"s most wealthy companies
would provide a large boost to the economy.

I do not want to repeat myself. The entire Pro argument is based off multiple WhatIf scenarios that are not even likely to occur. But, in the opposite way, the Con
argument is based off evidence and fact. Apple has done amazingly well globally
because of the way it has done business. Changing that, and going for a large risk
which has little to no chance of success, is not a good idea. The Pro argument is
based off of faith that the consumer base will stay, and wishful thinking.

By moving every single instance of production and assembly in other countries and
continents, the cost would be too great. The companys costs would rise. The

products costs would rise. The shareholders would be furious. Apple may even go
under. Therefore, moving all of the production and assembly of Apple products
would be ultimately detrimental to the company and to the world economy.
Here are some common reasons:
*
*
*
*
*
*
*

Reduce and control operating costs

Improve company focus
Gain access to world class capabilities
Free internal resources for other purposes
A function is time consuming to manage or is out of control
Insufficient resources are available internally
Share risks with a partner company

In the early days, cost or headcount reduction were the most common reasons to outsource . In
todays world the drivers are often more strategic, and focus on carrying out core value-adding
activities in-house where an organization can best utilize its own core competencies. Main factors
influencing successful outsourcing The critical areas for a successful outsourcing program are:
*Understanding company goals and objectives
*A strategic vision and plan
*Selecting the right vendor
* Ongoing management of the relationships
* A properly structured contract
* Open communications with affected individual/groups
* Senior executive support and involvement
* Careful attention to personnel issues
* Short-term financial justification
From this list open communications and executive support are of paramount importance in a
successful outsourcing process . Additional consideration should be for a workable Service Level
Agreement, which is openly available, to all staff involved.
Open Communication
Whatever the outcome of the outsourcing arrangement, managing change is fundamental to the
success of the program. Assessing stakeholder requirements is the first part of this process, and
having open channels of communications during this time are vital. Everyone concerned should be
involved in the process.
Executive Support
Strategic objectives, such as outsourcing initiatives must come from the top echelons of a company.
Senior management must articulate the goals and objectives of the outsourcing initiative and
communicate how the process will benefit the organization

Todays managers are looking ahead and recognizing that the responsibility for ensuring the success of
their enterprises outsourcing initiatives does not stop when the ink has dried on the contract,
Unfortunately, this has not always been the case. A combination of uncertainty combined with a lack
of attention to critical details has created a present day scenario where, according to The Gartner
Group, 25% of outsourcing contracts will be re-negotiated or canceled within three years. Ongoing
management of the relationship is important. Senior management must stay involved during the
implementation of the contract. Not only should there be a clearly defined escalation procedure, but
senior management should meet at appropriate intervals to discuss the outsourcing relationship.
Meetings should also be held at the operational level to address the working of the outsourcing
contract in practice, to identify and resolve any problems that have been encountered, and to agree on
changes to ensure continued satisfaction

Top 6 Outsourcing Disadvantages

As you evaluate your outsourcing choices, keep in mind that there are advantages to
outsourcing and disadvantages of outsourcing . Look at each one of the outsourcing disadvantages
listed below and decide what impact that item would have on your business. If the outsourcing
disadvantages outweigh the advantages of outsourcing, then you should avoid outsourcing those
operations.
1. Loss Of Managerial Control
Whether you sign a contract to have another company perform the function of an entire department or
single task, you are turning the management and control of that function over to another company.
True, you will have a contract, but the managerial control will belong to another company.
Your outsourcing company will not be driven by the same standards and mission that drives your
company. They will be driven to make a profit from the services that they are providing to you and
other businesses like yours.
2. Hidden Costs
You will sign a contract with the outsourcing company that will cover the details of the service that
they will be providing. Any thing not covered in the contract will be the basis for you to pay additional
charges. Additionally, you will experience legal fees to retain a lawyer to review the contacts you will
sign. Remember, this is the outsourcing company's business. They have done this before and they are
the ones that write the contract. Therefore, you will be at a disadvantage when negotiations start.
3. Threat to Security and Confidentiality
The life-blood of any business is the information that keeps it running. If you have payroll, medical
records or any other confidential information that will be transmitted to the outsourcing company,
there is a risk that the confidentiality may be compromised. If the outsourced function involves
sharing proprietary company data or knowledge (e.g. product drawings, formulas, etc.), this must be
taken into account. Evaluate the outsourcing company carefully to make sure your data is protected
and the contract has a penalty clause if an incident occurs.
4. Quality Problems
The outsourcing company will be motivated by profit. Since the contract will fix the price, the only way
for them to increase profit will be to decrease expenses. As long as they meet the conditions of the
contract, you will pay. In addition, you will lose the ability to rapidly respond to changes in the
business environment. The contract will be very specific and you will pay extra for changes.
5. Tied to the Financial Well-Being of Another Company

Since you will be turning over part of the operations of your business to another company, you will
now be tied to the financial well-being of that company. It wouldn't be the first time that an
outsourcing company could go bankrupt and leave you holding-the-bag.
6. Bad Publicity and Ill-Will
The word "outsourcing" brings to mind different things to different people. If you live in a community
that has an outsourcing company and they employ your friends and neighbors, outsourcing is good. If
your friends and neighbors lost their jobs because they were shipped across the state, across the
country or across the world, outsourcing will bring bad publicity. If you outsource part of your
operations, morale may suffer in the remaining work force.

1. Focus On Core Activities

In rapid growth periods, the back-office operations of a company will expand also. This expansion may
start to consume resources (human and financial) at the expense of the core activities that have
made your company successful. Outsourcing those activities will allow refocusing on those business
activities that are important without sacrificing quality or service in the back-office.
Example: A company lands a large contract that will significantly increase the volume of purchasing in
a very short period of time; Outsource purchasing.
2. Cost And Efficiency Savings
Back-office functions that are complicated in nature, but the size of your company is preventing you
from performing it at a consistent and reasonable cost, is another advantage of outsourcing.
Example: A small doctor's office that wants to accept a variety of insurance plans. One part-time
person could not keep up with all the different providers and rules. Outsource to a firm specializing
in medical billing.
3. Reduced Overhead
Overhead costs of performing a particular back-office function are extremely high. Consider
outsourcing those functions which can be moved easily.
Example: Growth has resulted in an increased need for office space. The current location is very
expensive and there is no room to expand. Outsource some simple operations in order to reduce the
need for office space. For example, outbound telemarketing or data entry.
4. Operational Control
Operations whose costs are running out of control must be considered for outsourcing. Departments
that may have evolved over time into uncontrolled and poorly managed areas are prime motivators for
outsourcing. In addition, an outsourcing company can bring better management skills to your
company than what would otherwise be available.
Example: An information technology department that has too many projects, not enough people and a
budget that far exceeds their contribution to the organization. A contracted outsourcing agreement will
force management to prioritize their requests and bring control back to that area.

5. Staffing Flexibility
Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional
resources when you need them and release them when you're done.
Example: An accounting department that is short-handed during tax season and auditing periods.
Outsourcing these functions can provide the additional resources for a fixed period of time at a
consistent cost.
6. Continuity & Risk Management
Periods of high employee turnover will add uncertainty and inconsistency to the operations.
Outsourcing will provided a level of continuity to the company while reducing the risk that a
substandard level of operation would bring to the company.
Example: The human resource manager is on an extended medical leave and the two administrative
assistants leave for new jobs in a very short period of time. Outsourcing the human resource function
would reduce the risk and allow the company to keep operating.
7. Develop Internal Staff
A large project needs to be undertaken that requires skills that your staff does not possess. On-site
outsourcing of the project will bring people with the skills you need into your company. Your people
can work alongside of them to acquire the new skill set.
Example: A company needs to embark on a replacement/upgrade project on a variety of custom built
equipment. Your engineers do not have the skills required to design new and upgraded equipment.
Outsourcing this project and requiring the outsourced engineers to work on-site will allow your
engineers to acquire a new skill set.