đź“…This fact may be outdated
This fact is based on an early 2010s analysis of the iPad 2 manufacturing costs. The specific $1,140 figure referenced labor rates and manufacturing costs from approximately 2011-2012. While the underlying economic principle (significant labor cost differential between US and Chinese manufacturing) remains true, the specific dollar amount, iPad model, and labor rates are outdated. Current iPads have different manufacturing processes, costs, and labor conditions have evolved in both countries.
The retail price for the iPad would be $1,140 if it were built by American workers instead of Chinese.
Why Manufacturing iPads in America Would Cost $1,140
In the early 2010s, when Apple was selling the iPad 2 for around $500-$600, economists crunched the numbers on a provocative question: what if these tablets were assembled in America instead of China? The answer was eye-opening—the retail price would balloon to over $1,140.
This wasn't about expensive components or shipping costs. The entire price difference came down to one thing: labor.
The Labor Cost Chasm
Research firm iSuppli estimated that assembling an iPad 2 in China cost about $10 in labor—roughly 9 hours of work at the going rate of $1.11 per hour. Chinese workers making iPads earned around $185 per week, while their American counterparts in manufacturing pulled in $32.53 per hour.
Do the math: those same 9 hours of American labor would cost nearly $293. If Apple wanted to maintain its profit margins (and let's be real, they would), that cost gets passed straight to consumers. Your $499 iPad suddenly becomes a $1,100+ luxury item.
Why China Won the Manufacturing Wars
The price gap reveals why China became the world's factory floor. It's not just about cheap labor—though that's a huge part. The analysis highlighted several competitive advantages:
- Massive labor pool: An abundant supply of workers willing to work for lower wages
- Manufacturing infrastructure: Entire cities built around electronics production
- Speed and scale: Ability to ramp up production of millions of units quickly
- Regulatory environment: Lower workplace protection standards reduced costs further
What's Changed Since Then
This analysis is now over a decade old, and the landscape has shifted. Chinese wages have increased significantly—manufacturing workers now average around $800 per month compared to the $185 per week cited in the original study. Apple has also begun diversifying its supply chain to countries like India and Vietnam.
But here's the thing: even with rising Chinese wages, the fundamental economics haven't changed enough to bring iPad manufacturing back to America. The wage gap, while narrower, still makes overseas production far more profitable.
The Real Cost of Cheap Electronics
That $1,140 iPad represents a choice American consumers make every time they click "buy now" on a $500 tablet. We've decided, collectively, that we'd rather have affordable technology than domestic manufacturing jobs. Whether that's good policy is debatable, but it's certainly effective capitalism.
The next time you're browsing on your iPad, remember: the device you're holding costs what it does because someone halfway around the world assembled it for a fraction of what an American worker would have charged. That's not a judgment—it's just the math.