You know one thing people don’t ever bring up in the iPhone vs Android debate that you get all the time with other products? U.S.A.

Now I know that most tech products are made in China, and that Google is an American company like Apple, but Google makes very little money off Android. It’s open source. The device manufacturer gets most of the profit. Samsung accounted for 95% of all Android profits in the first quarter of 2013. Samsung, like many Android smart phone manufacturers, is an Asian company.

Samsung (South Korea), HTC (Taiwan), LG (South Korea).

Several major parts for an iPhone are made in the USA then shipped to China for assembly. Things like the processors; Apple A4, A5 &  A6 are all made in Texas. The glass for the iPhone is designed and manufactured by Corning, at a plant in Kentucky. Basically the only iPhone creation task that is done in China is actually putting it all together. The high-paying, designing, engineering, marketing and sales jobs are here… in America! Not South Korea or Taiwan.

According to Forbes:

“A report written by three U.S. professors showed that only about “$10 or less in direct labor wages goes into an iPhone or iPad is paid to Chinese workers.” The report points out that while Apple products — including components — are manufactured in China, the primary benefits go to the U.S. economy because Apple continues to keep most of its product design, software development, product management, marketing and other high-wage functions in the U.S., not China. China’s role is more of an assembler.”

Both Apple & Samsung each made more profit in 2012 than GM, Chrysler & Ford combined.

2012 Net Earnings: GM ($4.9 billion), Chrysler ($1.7 Billion), Ford ($5.7 Billion) and Apple ($41 billion). Samsung made $8.3 billion in just the 4Q.

I saw a guy the other day driving a 1987 Ford Ranger single cab (in very poor condition) and the entire back window said “Got patriotism? Buy American”. I looked inside, and what was the driver doing? You guessed it, talking on his Samsung Galaxy S3. Which most likely is worth more than his truck.

Apple has been talking publicly about making more parts for there products in the USA. Apple CEO Tim Cook said to the Senate Committee on Tax Strategies:

“iPhone components are made in Texas and Kentucky. Apple is responsible for creating or supporting 600,000 new jobs. We’ve invested billions in the U.S. to create even more American jobs. We’re investing $100 million to create a line of Macs in the U.S. later this year. This will be assembled in Texas, and rely on equipment and supplies from other states.”

“I’m often asked if Apple still considers itself an American company. My answer always has been an emphatic “Yes.’ We are proud to be an American company, and equally proud of our contributions to the U.S. economy.”

Rumor has it that the new Mac Pro (which I think will see at WWDC on June 10th) will be made entirely in the US by the end of 2013.

Today if you flip over an Apple product it will most likely say “Designed by Apple in California. Assembled in China.” Americans that care about where their money goes should know most of the profit is in the “designed” part of that statement not “assembled”. An iPhone might not be assembled in the United States, but Apple is one of America’s biggest and most admired companies. So the Americans that “Got patriotism” should look at this glass half-full and consider buying a phone that proudly says “Designed by Apple in California. Assembled in China,” not “Designed by Samsung in South Korea. Assembled in China”.


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