Posted by & filed under Apple, exam2012A, industry analysis, iPad.

Description: App developers increase staff thanks to the iPad. But how crucial is Apple to job creation? CNN’s Maggie Lake reports

Source: cnn .com

Date: March 9, 2012

Questions for discussion:

  1. Do you feel that iPad release results in more jobs? Explain
  2. Should Apple manufacture the iPad in North America? Why? Or Why Not?

22 Responses to “The Ipad Effect on Job Creation”

  1. Jarrett Weinrauch

    I definitely feel that the Ipad release in more jobs. As explained in the video, the designers of apps alone is a huge labor force being built specifically in conjunction with the Ipad and Iphone. However, numerous other jobs have been created. Everything from the manufacturing of cases and accessories to designing products that compete against the I-devices. I also agree that Apple is giving away a lot of jobs to the foreign countries that build the devices, and the parts that go into the devices. However, I do not feel that Apple should manufacture the devices in North America. By utilizing the cheaper workforce in China, they are able to sell the products at a price below $1000.00 that competes with other tablets on the market. If Apple manufactured all of their I-devices in North America, they would not be able to compete with other brands and would lose tons of sales, and in turn, many people would lose their jobs because the I-devices are not selling. Also, Apple designs all of their products in California, creating many jobs there, they cannot be expected to have all of their jobs in North America when no other tech company does.

  2. Paige Magnussen

    Apple today is a very influential force in our generation. Technology is everywhere we look and have the most up to date technology has allot to do with it. I don’t like the fact that apple sends its products to get manufactured in different parts of the world where they can get labouring for cheap. I think it would be best if they produced them in Canada or in the US to generate more jobs. But the fact of the matter is this company is trying to make the best business decisions, trying to save the most of amount of money producing these products to generate the most revenue. The one fact that hard to deny is although they are not being manufactured close to home i do believe they are still generating jobs. Not only for app building for other types of companies. These leading technologies allow companies to do activities they never thought would be possible, they help reduce costs, and it provides some with a leading advantage. Although the numbers are hard to generate i think we as consumers need to put more pressure on Apple to release these numbers and also more pressure on them to move them away from poor working conditions and low paying employees. It will help their company image, and help ease the mind of many consumers.

  3. Jay Retzlaff

    There is no doubt that the release of the iPad has created more jobs. It may not have been the iPad that started the creation of all the apps but with the increasing popularity of the iPad has stimulated the app creation even more. New technology will always create more jobs is what I believe. I also do not think it really matters where apply manufactures the iPad. So I believe that it doesn’t need to be manufactured in North American. The reason for this is because even though the manufacturing process will not have any effect on the American economy the jobs created by the iPad. So not matter what it will still help the US. Also Apple isn’t the only big company to manufacture outside of North America. So why should Apple be criticized for not manufacturing here when others are not either.

  4. P

    I think the iPad release may be a source of creating jobs, however iPhones and iPods were both using Apps before the iPad was created. I know that last month the record of 25 billion apps downloaded was reached. This is an outstanding number and shows how truly popular Apple is and how loyal their customers are. I’m sure many jobs were created in order for people to create apps that appeal to the market, but as we saw in the video in class, not all apps get approved and it may be months before developers even hear back from Apple. I think apple is under a lot of scrutiny because they are a leading competitor in all markets which they produce their products. They thrive on perceptions of the consumer and need to provide information that makes their users happy and willing to continue their support towards the organization. I support apple products completely and think they really have changed the way people live, they may have not created more than 500000 jobs but they improved our quality of life. I think people need to stop hating on apple so much and just enjoy their amazing products.

  5. PJ

    I believe that the release of the Ipad has created more jobs in North America, however if it wasn’t the Ipad it would be something else creating the jobs. There will always be some sort of technological development which will create thousands of new jobs and right now that development is the Ipad. I think the main problem people have with apple is that the production of there Ipad occurs over seas which takes jobs away from Americans while giving Apple the image of using cheap inhuman labor to maximize there profits. However Apple cannot be blamed for simply trying to produce there products at the most reasonable price. These cheap production costs are what allows apple to sell such a technologically advanced product for such a good price.

  6. Tim Anderson

    Apple would like us to believe that the release of the ipad has created 540,000 jobs in the United States. These jobs are in the area of app design and creation. One of the questions raised by the video clip has to do with whether these people would have found work elsewhere. I think this is a difficult question to answer especially in the short term. Apple is looking for good publicity because of its relationship with a company (foxconn) that is in the business of exploiting people to create electronics for sale to North Americans. They will use any numbers, even questionable ones, to try to put a positive spin on what is actually happening. In the short run it is impossible to say whether apple created these jobs because the people working there may have left another job to take this one because they liked the working environment or some other reason. The real numbers are probably very low. However, in the long run there will be an increase in people becoming qualified to build apps and this will create an industry that will influence the employment rate in a positive direction.
    I think Apple had to send the production jobs overseas (however much I disagree with their choice of partners) for economic reasons. I hope the United States and Canada can train our young people over the next decade to be ready for the jobs that will be created that we can’t see yet. As our society becomes more tech savy and dependent, we will need a workforce to provide the services and products and we must be ready.

  7. Ford

    I do think that the iPad has resulted in more jobs. Maybe not the 500,000 that they say but it has created jobs like the ones in the video at that particular firm and I am sure that there are many more like them around the world. The iPad is one of the biggest tech products out there in the world. It would be ridicules to think that it is not creating jobs for Americans. Every huge invention that is brought into our world needs people to work on it and work for it in order to improve it and make it so that everyone can enjoy the benefits. No, apple should not manufacture the iPad in North America. This would cost them way too much money. All big companies produce their products off shore and you don’t hear anyone complaining about that. Where do you think your Nikes are made, or your clothing, or your Car that you love so much. This is a business strategy that Apple has put in place and works. Don’t depend on one company to support your economy.

  8. Rachael Brown

    There is no doubt in my mind that the iPad release has resulted in more jobs. It has created a huge number of jobs overseas for manufacturing the product, and tons of technical jobs in first world countries like the United States. Apple is under no obligation to create growth and stimulate the U.S. economy through manufacturing in North America. In fact, manufacturing in North America does not make financial sense with the cheap overseas labour available.

    Outsourcing from globalization is generally positive for everyone when it comes to job creation.
    A huge concern that I would have with manufacturing Apple products in North America is the pollution that would accumulate here. At least our air quality here isn’t being affected by the mass manufacturing of Apple products. Regardless of where the product is being manufactured, Apple’s iPad has created many jobs in North America. The specific number of jobs may be immeasurable, but this fact cannot be denied. In first world countries, I feel that our strengths are based more on intellectual jobs rather than manufacturing jobs. Why not utilize our strengths, and let other countries that can cheaply manufacture products utilize theirs? Where Apple manufactures products should be hugely based on increasing margins and profitability of the company.

  9. Brittney Rainforth

    Apple is one of the leading companies in today’s market. They have come out with new innovations that have changed the way our world works. This means that although Apple is responsible for getting rid of jobs, they are also responsible for creating jobs. These jobs just come in different areas and industries. Manufacturing, for instance, used to be one of America’s top industries. Now however, America’s manufacturing industry has declined significantly to the point that it is almost non-existent. So should Apple be manufacturing its’ products in America? In terms of America’s economy they definitely should. However, the main goal of a company is to make a profit and in order to make a profit, companies need to sell as much of their products as they can, while putting as little money as possible into their expenses. So from the company’s point of view, manufacturing their product overseas makes more sense because it is much less expensive. If Apple were to bring their manufacturing plant over to the United States, they would be helping the U.S. economy, but essentially would be hurting their bottom line and main goal of maximizing their profits. This is a complicated issue, and there is not one simple answer to whether Apple should manufacture overseas, or at home.

  10. Kelsey Roberts

    I believe entirely that the creation and releases of the iPad has created jobs in the American economy. With the opportunities for technological advancement that the release of the iPad as brought, entire corporations have changed and altered how they conduct business, with a lot of it gearing towards the use of iPads. While I don’t argue with the fact that Apple is using such opportunities to dilute their recent criticism of engaging in oversea manufacturing, the fact is technology has become the boom of our generation, and thus, thats where the majority of jobs are being created. Apple’s decision to move manufacturing overseas was a customer orientated decision. The cost to manufacture in China is cheap, millions of dollars cheaper then it would to manufacture the exact same product here in North America.If Apple were to set up manufacturing plants in North America, the costs alone would out weigh the jobs it would create. It would simply not be within the companies best interest to manufacture anywhere but overseas.

  11. Sagrika

    Yes, I think I-Pad release results in more jobs and that is because there is such a high demand of I-Pad’s that to fulfill that demand they have to increase supplies. For that they have to manufacture which demands labour and results in more jobs. This is a good way of generating jobs because of the success of the product in the market and I-Pad’s keeps getting better and better with technology with additional features or additional functions and people like this and that is why the demand goes up. But the jobs are not only created in North America but also overseas. This could be a good thing for the people in other countries but for North America probably not; seeing that more jobs are overseas and not in its homeland. Apple should be creating more jobs in North America and employing people in its own country. This would also save Apple from the negative criticism and probably seem even more attractive to certain population which could result in even better sales.

  12. Lacey Dodds

    Yes, I do think that the release of the iPad has created more jobs in the economy, but mostly only in the information technology sector. You must keep in mind that anyone who is designing these various apps for the iPad probably has a degree in computer science or information technology, so it is not like the iPad is creating tons of jobs that just an average joe can get. I think that while it is important to get more new grads employed, I think the people in the US economy who are really suffering are the people that do not have an undergrad or graduate degree under their belt. It is the people who got laid off from their jobs back in 2008 and have no education experience to fall back on. Nonetheless I do think a creation of any job is better than none.
    From an ethical standpoint, yes Apple should manufacture the iPad in North America. If they did this, they would maintain a better image. From a business standpoint, Apple is doing what is necessary to make a profit, and that is to outsource their labour. While I do not agree with whatever goes on in the sweat shops overseas, I know that it must cut their labor costs down significantly, which is why they are so profitable.

  13. Linli He

    Apple has posted a new page on its website that outlines the impact it has had on jobs and job creation within the United States; Apple claims to have created or supported 514000 jobs in the United States alone. There is no doubt that the release of iPad has effected on job creation, we don’t necessarily need to argue about the accuracy of this figures . Indeed, Apple has had a major impact on job creation worldwide in many ways. Apple products with high-tech and personalized design have increasingly influenced our generation. iPad has an unimaginable potential marketing in the world as the company expands over the world. Of course, it brings the company a great demand of iPad. It means that those awesome design and demand certainly need a huge pool of Human resources (Employees), equally say different jobs. Every invention needs people to design on it and work on it in order to meet with success. Personally, if I am standing in the side of supplier, I would say Apple should not limited their works in United States, it should outsource jobs to foreign countries where labour is cheaper, because the core of the company goal is to collecting as much benefits as possible.

  14. Dennis Zhong

    1.Do you feel that iPad release results in more jobs? Explain

    Definately, App store have more than 10 million apps. They created by different companies in the world. Many small IT business benefit and growth because of ipad and iphone. In result, Apple increased the worldwide enployment and moved work forces to IT position.

    2.Should Apple manufacture the iPad in North America? Why? Or Why Not?

    It is not possible, because of the production cost. Apple needs to remain the competition advantage to face other Tablet corparation like HTC.

  15. Michael Holland

    I believe that the iPad release has created more jobs. As evidenced in the viedo, app and content creation for the iPad, other tablets, and other i-products, is a growing market and one that has a large opurtunity for expansion. However, I think that the job creation accredited to apple may be a misrepresented. I believe that some of the jobs that have been “created” are more so just a redifinition of existing jobs and a shift in the labor force from one market to another. As with the advent of the smartphone I would like to see the stats for the number of jobs that have been downsized due to use of iPads and other tablets. As for whether the iPad should be manufcatured is a difficult question. Economically speaking for Apple and the Consumers it is a good idea to manufacture in locations that provide the cheapest costs. These cost savings in most cases are transfered to the consumer in some form or another. On the other hand, international manufacturing moves jobs out of country which can have a direct impact on the countries economy. A supporter of in-country manufacturing might suggest that costs would be reduced in this case, due to smaller transportation and shipping costs, however, I would argue that increased labor costs and taxes would off-set these. Ultimately the decision is whether you want to increase economic growth through job production while reducing sales, or to increase sales while reducing some of the economic growth.

  16. Tuan Tran

    Do you feel that iPad release results in more jobs? Yes, I do feel that the release of the iPad result to more jobs creation mostly because of the apps and other job creation for example like customer support. I think this situation is very similar to the Smartphone industries. Apps are in constant demand by business and consumer alike. This trend will continue, however it will level off and maybe decrease if a new innovation come into the market. I think this is why Apple are give out dividends but anyhow, I think that the bottom line is that new innovation leads to new job creation. Should Apple manufacture the iPad in North America? Yes, because the population of North America will have job. No, because the product will be too expensive. Why? I think us North America want more of the pie and developing countries are happy just to have food to eat. The bottom line, it is working out just fine, I am happy with the product Apple coming out. However, I would like to see that RIM come up with either new innovation or continue to do what they have all ready done only better.

  17. Trevor

    Should apple manufacture its ipad (and other products locally)? The simple answer to this is yes, as it would further help to stimulate a stag net unemployed economy. Figures were recently released stating that Apple is sitting on approx 100 billion dollars in cash. With this profit in mind, it may be time for apple to start using local companies to build their products instead of outsource the work to Chine (Foxconn). Generating employment locally will also have the added benefit of adding more disposable income into the NA economy, which could potentially increase sales on apple products.

    Is apple creating jobs by releasing the iPad? No question. The video states that employees working on apps may simply move to other companies (thus being employed somewhere else). With the example in the video, they went from 30 people to 130 people in a year – these are new jobs created by the iPad (designing apps). It is possible that these people may work elsewhere if there is no Ipad, but its not as if those other jobs cease to exist now that the iPad has been created. You have the same amount of people, and theoretically more jobs to go around – I fail to see how this is a negative.

  18. M

    I agree that the creation of the iPad as well as other tablets and Smartphone’s has created tens of thousands of jobs, possibly more. These creations opened up a whole new market with regards to app’s. This market includes the people who are making apps, the people who are around for troubleshooting the problems that arise, you need to get them cleared by apple in order to get them in iTunes and the list goes on and on. Without the creation of the iPad and these other app using devices these markets never would have existed and along with that no new jobs would have been created. I in part think that Apple should manufacture in North America due to the Foxconn video we watched earlier showed how horrendous the working situation is. That does not mean that it will happen, clearly in Apples best interest they would continue to operate their manufacturing overseas because is what is allowing them to clear the most profit. I really did not like how Apple put out their own study about how many jobs they have created, and people are completely right to question these numbers and their accuracy. The study should be done by an outside uninfluenced source or possibly the government in order to make these stats more legitimate.

  19. Cole

    I do believe the release of the Ipad has created more jobs in North America. It help make the app world what it is today and companies are always trying to get a better app out there to stay competitive. It has also created more job in the marketing section because it is a new way to branch out to customers to promote business.

    No I don’t believe they should have to manufacture in North America. outsourcing is not new to the business world and any company with good business sense would outsource if they can get the same quality product for less cost. It is not Apple’s job to stimulate the U.S. economy.

  20. Patrick

    I think that with the release of the iPad many jobs have been created. A lot of these jobs are things like creating apps which provide entertainment, and information. Companies are using apps on the I devices to supply consumers with knowledge on things such as sales that are going to be coming at the firm. With the creation of the app, there are many jobs that are created in designing and developing these apps. Some companies, such as Scrollmotion, have been developed only because of this introduction of apps, and would not have existed without.
    I think that it would be good for the economy if apple as to manufacture iPads in North America, but I would most likely make the cost of the iPad more pricey. The reason for this is those places like China, where the iPads are made have incredibly cheep labour. Although the manufacturing of the ipad has created many jobs in places like china, it allows us to have these ipads at affordable prices which allows the average person to afford it, which create other jobs that would not have been possible without the ipad and having it be supplied at a price that consumers in North American can afford.

  21. JB

    I believe that the ipad release has created more jobs out there for people. Apple says that in the United States alone, 514,000 jobs have been created, even though apple critics say that that amount of newly created jobs would be impossible to prove, it does not mean that apple has not created more jobs. Just from observing the clip, I can see some of the success stories that apple has created for jobs. Companies going from originally 30 people employed to 130 people employed is quite a jump and there is definitely no wrong doings with the growth of these companies from the Ipad releases. Should apple manufacture the ipad in North America? Personally I don’t think that they should. Having products manufactured overseas makes it possible to sell the products at a much lower price than if manufactured in North America. If apple were to consider having the ipad manufactured in North America they would then have to raise the price for the Ipad that would also likely result in a much lower quantity of their products being sold. Not only would price be an issue but the people in the factories overseas would have less work, even though they get treated very unfairly in factories, for the most part, they still rely on the work to help feed themselves and their families.

  22. Lealand McCallum

    Yes I do believe that The release of the Apple iPad has brought more jobs about, as the video showed that the creation of new apps alone have created jobs. It was said in the video that there used to be only six to seven people working on this type of thing, and now there is already over fifty. That growth alone shows that the iPad and related technology is a great job creator.

    Looking at this in a strictly job creating sense yes I do think that manufacturing the technology in the united States would be better, because that would create more jobs and begin to drive the American economy back to where it needs to be. But looking at it as a consumer of these products I say no they should continue to be manufactured in China and overseas. This is true because the costs associated in manufacturing over there is enormously smaller than it would be in the United States, meaning that the price to be charged to consumers is a lot lower now than it would be if the manufacturing were to be done in America. So personally I say no, Apple shouuld not manufacture its products in North America.

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