Explaining Southern California's economy

This is where Apple pays Chinese workers $2 an hour to make iPhones

 

It's actually starting to build: the Apple backlash. A decade ago, the company was almost bankrupt. Today, it has a market cap of $481 billion, almost $100 billion cash in the bank, and a share price that some analyst think could go to $1000 by 2015, if not sooner.

Those numbers come from Apple's astonishing growth — around 40 percent since January of last year — and its equally astonishing operating profit margins: 30-plus percent. But what enables that growth and those margins is two things: cheap Chinese labor; and customers who are willing to pay a premium.

The video above is from a February 22 broadcast of ABC's "Nightline." The news program got an inside look at Foxconn, the "iFactory" in China where workers are paid less than $2 an hour for a 12-hour shift. More than a dozen of these workers have committed suicide, although it's unclear whether the working conditions drove them to it or whether Foxconn's facilities employ so many Chinese that suicides are going to be inevitable, as a percentage of the employed population.

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