Analyst says that iPhone prices can increase to $1350 if made in the US

Discussion in 'Politics, Religion, Social Issues' started by shyam09, Dec 14, 2016.

  1. shyam09 macrumors 68000

    shyam09

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    Oct 31, 2010
    #1
    CNN is currently playing on the barber's TV and according to some analyst, the price of the iPhone could increase to $1350 if built in the US.

    Personally, I don't see that large an increase happening. According to CNN, a worker in China is paid $600 / month; while a worker in the US would get $1000/month. They would save on shipment costs, not have to deal with foreign regularities, etc.

    Thoughts?
     
  2. DearthnVader macrumors 6502

    DearthnVader

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    #2
    Should help the resale value of those that already have iPhones, no?
     
  3. Dmunjal macrumors 65816

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    #3
    $30-40 more according to MIT.

    https://www.google.com/amp/s/9to5mac.com/2016/06/13/iphone-made-in-usa-cost/amp/
     
  4. D.T. macrumors 604

    D.T.

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    #4
    There's some not insignificant costs to building the factories, training, plus we don't know the whole supply chain logistics (i.e., while it might be cheaper to get iPhone built in the US to US owners, other materials might be dramtically more expensive). I also think that monthly salary figure for skilled, trained US workers in this industry is low (that's about $6.25/hour).
     
  5. jkcerda macrumors 6502

    jkcerda

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    #5
    Don't buy iPhones. Until they drop the price, Simple as that :p
     
  6. D.T. macrumors 604

    D.T.

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    #6
  7. jkcerda macrumors 6502

    jkcerda

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    #7
    About $12 here in kommiefornia
     
  8. MacAndMic macrumors 6502

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    #8
    It will cost consumers whatever the market will bear. Apple may take a hit in profits but they could easily restructure the millions upon millions they pay their executives to correct their bottom line. Isn't this what Bernie supporters always wanted?
     
  9. mrkramer macrumors 603

    mrkramer

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    #9
    Does it cost that much more to retool a factory in China for a new iPhone versus putting those machines into an already existing but closed factory in the US?
     
  10. appleisking macrumors 6502a

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    #10
    Lol people are already grumbling having to pay obscene prices to Apple they'll never go for increases that much. If costs go up for Apple they'll just have to cut down on their ridiculously bloated margins. They may be willing to do that if the U.S gives them a break on taxes. It's all about demand folks.
     
  11. ibookg409 Suspended

    ibookg409

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    #11
    They could spin it so that they charge more, people will pay it, and get brownie points for building them here.
     
  12. Huntn macrumors G5

    Huntn

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    #12
    I don't think worker costs would be a direct correlation to the price increase. There could also be some environmental issues such as pouring whatever nasty stuff they work with into the river out back of the Chinese factory. That would not, err should not fly in the U.S.
     
  13. appleisking macrumors 6502a

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    #13
    Maybe but I'm left wondering are people really willing to pay that much more for the made in America tag? Well I'm sure there's a sweet spot somewhere on price.
     
  14. dukebound85 macrumors P6

    dukebound85

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    #14
    Subsidies will become the rage again and contracts will be 3 years
     
  15. DearthnVader, Dec 14, 2016
    Last edited: Dec 14, 2016

    DearthnVader macrumors 6502

    DearthnVader

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    #15
    If the people that make your products, can't afford your products, you're doing something wrong.

    http://hfha.org/the-ford-story/henry-ford-an-impact-felt/
     
  16. Dagless macrumors Core

    Dagless

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    #16
    How will it improve the iPhone for us?

    signed,
    the rest of the whole world.
    --- Post Merged, Dec 14, 2016 ---
    I wonder if machine line workers at Bentley can afford their product. Or can the builders who make Trump's various properties.

    I think what you have there is a catchphrase.
     
  17. Dmunjal macrumors 65816

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    #17
    How much did Ford pay in corporate taxes back then?

    1% is the answer. Today? 28%.

    That difference can pay a lot of wages.
     
  18. SusanK macrumors 68000

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  19. thekev macrumors 604

    thekev

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    #19
    I can't find anything on this, so I don't know whether they provided an estimated breakdown of cost differences or pure speculation.
     
  20. Gav2k macrumors G3

    Gav2k

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    #20
    They won't ever get shipped on time if there made in the states! :(
     
  21. Carlanga macrumors 604

    Carlanga

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    #21
    Nah Thats a fallacy.
    There are companies today like GM, American Airlines And United that don't pay taxes and no job growth.

    The excuse that lowering taxes for the big corporations will create new jobs is a fallacy in 2016. What has been shown thought is lowering taxes for the lower brackets increases employment.

    You can prove me wrong w more current info than ford though.
     
  22. Dmunjal, Dec 14, 2016
    Last edited: Dec 14, 2016

    Dmunjal macrumors 65816

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    #22
    Ford paid an effective rate of 28% in the MRQ.
    http://csimarket.com/stocks/singleProfitabilityRatiosttm.php?code=F&itx

    Corporate Tax Rate was 1% in 1914
    https://www.google.com/url?sa=t&sou...Q5lBBT8KwmBbIj_Iw&sig2=nmRzpJqkObmuBCmrYglp6A

    Ford made $10B in profit in 2015. If we had the taxes when Henry Ford was running Ford, that's $2.7B they could give to their employees instead of giving it to the government.

    Effective corporate tax rate of all corporations is 29%.

    [​IMG]
     
  23. cfedu macrumors 65816

    cfedu

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    #23
    Less shipping, greener energy, less pollution and jobs. Maybe Trump will really make America great again. If more companies do this maybe they can even keep the prices the same which can be offset with more people being able to buy stuff again.
     
  24. DCIFRTHS, Dec 14, 2016
    Last edited: Dec 14, 2016

    DCIFRTHS macrumors 6502a

    DCIFRTHS

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    #24
    $1000 a month is literally $200 a year over the Federal poverty level (for one person households). Seriously? This sounds like a good idea to people?
    --- Post Merged, Dec 14, 2016 ---
    Let's be honest, and not naive. No offense intended. That money would not go back to the employees. It would be doled out as dividends, reinvented into the company (not a bad thing), held in off-shore banks, given as executive bonuses etc. As Reagan proved, Trickle Down Economics only works for rich people.
    --- Post Merged, Dec 14, 2016 ---
    Thank you for making me laugh. I needed that. I hope I eat my words, and I gladly will if it happens. The only people that will benefit from the current president elect is the president elect, his family and friends.
     
  25. Carlanga macrumors 604

    Carlanga

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    #25
    All I see is a chart that show lower tax rates nowadays vs 1975 and we have more issues w jobs today.
     

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