For just $12.38 per iPhone, Apple could pay its workers a livable wage. 

Today Apple’s shareowners will vote to approve the compensation packages of its top executives at its Annual Shareowner meeting in Cupertino, CA. The company broke records last quarter selling 74.5 million iPhones and earning $18 billion in profits.

Executives will be rewarded lavishly:
Tim Cook, CEO: $1.7 million salary, $9.2 million total compensation
Other senior VPs: $947,596 salary, $28 million average total compensation

What won’t be discussed at the meeting is the ongoing struggle of the workers who make Apple’s highly profitable products. While executives earn millions, workers make a little over $3/hour. In order to earn enough to cover living expenses workers rely on overtime, sometimes working as many as 64 hours per week at one Apple supplier, according to China Labor Watch.[1]

We’ve estimated that Apple could pay its 1.5 million workers a decent wage for only $12.38 more per device. That’s just 7% of its profits last quarter.[2]

Our latest infographic breaks this down.

Would you pay $12.38 more per iPhone to ensure workers are earning decent wages?

Apple could, and Apple should.

Apple Wages Infographic

Download infographic as PDF (for printing).

 

 


[1] Analyzing Labor Conditions of Pegatron and Foxconn: Apple’s Low-Cost Reality, China Labor Watch

[2] Explanation of calculations:

This calculation is conservative and rough, as there are many variables in production. It is meant to show how much workers in the supply chain are squeezed.
China Labor Watch estimates Apple’s quarterly labor costs at $3.4 billion per quarter (20RMB/hour for 1.5 million workers for a 55-hour work week). Average overtime hours per week at one major Apple supplier during Q1 2015 was 24 hours. Including overtime pay, Apple’s quarterly labor costs increase to $4 billion. CLW estimates it would cost Apple $5.3 billion per quarter to bring worker base wages up to a level that would cover basic living costs for an urban resident in China at 55 hours per week. This is  $1.3 billion more. Apple sold 105 million devices in Q1 2015. This is just $12.38 per device. This is also 7% of last quarter’s profits. 

 

8 Comments »

  1. I think the implication of asking readers if they would pay $12.38 more for an iPhone is supposed to be that, if consumers who don’t make these huge salaries/bonuses/expense cheques are willing to support workers’ rights, then instead of giving its executives these unconscionable amounts of money, Apple should use money from its profits to pay its workers fairly? However, this could also be interpreted to mean that iPhone users are agreeing to pay an additional sum to what they’re already paying for their phones. It could be misconstrued as suggesting Apple raise its prices with the compensation packages remaining the same.
    Could you clarify, please.

  2. Hello, Do you think that this is something that will ever be ammended. In recent years executives have been getting a lot of heat over this type of issue. It seems that at some point there will be the need for the leaders of apple to have some sort of change of heart. Do you agree?

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