http://www.aljazeera.com/indepth/interactive/2014/10/iphone-launches-india-andriod-20141016172919957810.html
Apple released the iPhone 6 and iPhone 6 plus on October 17, 2014 in India. The most technologically advanced version of the phone costs about $1,000. The cost of the iPhone 6 converted from Indian Rupees to U.S. dollars is $867 and $1014 for the iPhone 6 plus. This is almost double of the median income per capita in India which is $616. China's cost for the iPhone 6 and iPhone 6 plus is just barely below the median income per capita while the US's cost for both phones is well bellow, about $800, the median income per capita. The article goes on to describe how long it would take for a person, in each country, surviving on a median income to be able to afford the iPhones. This calls into question Thomas Friedman's argument that the world is flat and the playing field is becoming increasingly leveled. Though the median income has been rising in India, possibly due to more opportunities presented by globalization, it is still shocking that the cost of a phone is more than what some people make.
I question the validity of the statistics used in the article, specifically the calculation of "median income per capita". First, they cite the US median per capita income to be just over $15,000 which is about $12,000 less than economists predictions following the 2010 census. I say their "predictions", because the US (and most other countries) do not release or calculate "median income per capita". GDP per capita and median household income are both common statistics, but not "median income per capita". Which lead me to believe that Al-jazeera used the entire populations of the three countries to estimate the median. This calculation would include children, of which China and India are currently overflowing with, and children neither have an income nor use iPhones. So while there is certainly is not a "flat playing field" between these countries, it is certainly less uneven then you make it out to be.
ReplyDeleteNoah's point is an interesting one and I do not have the answers on that. However, I think that Grace's overall point is quite a good one. Goods and services that we take fro granted can be super expensive for middle class people in other countries. When I taught English in China, my 'boss' talked about how much he wanted to travel to the US but that he simply could not afford it. I would take him years of saving a lot of money to do so. I was a student and the hit wasn't terribly bad for me to fly to China.
ReplyDeleteAnd of course China is quite a bit richer than most other 'developing' nations...
Noah brings up a point that I had not thought of before. I assumed that the data was correct and did not consider that the way it was calculated may be skewing the data. Nevertheless, I do not believe that the margin or error could be so wide as to discredit my argument that the playing field may not be leveling as much as was originally thought. The fact remains that the average American will use a smaller percentage of their income buying an Iphone than that of an Average Indian or Chinese person. Now this issue may not seem significant because we are talking about a luxury item but the issue becomes more salient when we look at education, housing, and proper food availability and distribution.
ReplyDeleteWithout looking at the exact numbers, the statements on the difference of income in those countries is quite different. Along with Professor Shirk's comment about his experience in China, I have worked with a few Indians who would tell me stories about their journey to the United States to work hard and earn money to send back to their families. In my coworker's explanations, he would describe the huge margin between classes and how sending a small amount of money we would take for granted, would make a huge difference and help his family back in India. Therefore overall I do agree in the shocking differences and gaps between countries incomes that Grace points out.
ReplyDeleteWhile I think that Noah does make a valid point in questioning the accuracy of the statistics offered in this article, I do not think that the disparities between class and income equality of different states are negligible. I would agree with what you are stating here Grace, that the world is not as "flat" as Friedman suggests.
ReplyDeleteWhile I see your point Noah, I am more inclined to agree with Grace and Sarah because of the obvious differences between class and income equality among states. Overall it is just surprising to me that Apple is even interested in selling states such as India and China when a wide number of people cannot even afford the product.
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