Apple Says Trump's Tariffs Will Reduce Its Economic Contributions and Global Competitiveness

[Saipher]

The amount of nonsense people post here is sad and scary!

The armchair economic advisors here seem very knowledgeable on the subject of trade /s

 

[lazyrighteye]

Angry Tim

I was thinking more like...

 

[Southern Dad]

This whole tariff thing is one of the stupidest things Trump has done in office, other than obstructing justice to the point that he’ll immediately be indicted once he’s no longer in office.

Hopefully he stops monkeying around with the economy like this before driving us into a recession.

We've watched how successful not tariffing products assembled or manufactured for the U.S. market outside of this country has been for decades. We've paid for it by watching our jobs go out of the country. Unions have begged for tariffs. Does it look like we are in a recession? Our economy is in the best shape that it has been in a long time. Ta-Da!

 

[thisisnotmyname]

That picture of Tim is hilarious!

 

[NMBob]

I bet Timmy would like tariffs if the money collected was distributed to the companies whose products were being tariff'ed on the other side. Treasury should do that. I don't think there is any special purpose for the money.

 

[az431]

Apple has another option... They could decide to assemble or manufacture here in the U.S.A. Yes, I realize that their labor expense would go up, after all, we do not allow people to work for a few dollars a day, in horrible conditions, but they would have less in tariffs. Made in the U.S.A. used to mean something. I remember when I was proud that the Mac Pro was being assembled in Texas.

Just about everything you stated is false, and the reason for that is you really have no idea what it takes to manufacture an iPhone, nor the sheer scale of such manufacturing operations.

Foxconn employs nearly 1.5 million people in China who assemble electronics. That's more people than Home Depot, UPS, FedEx, and GE collectively employ in the entire world.

There aren't 1.5 million people in the entire US who have the skills and the desire to assemble electronics for a living, and certainly not in the approximately 5 million who are currently unemployed.

To attract and train that many workers you would need to raise the price of an iPhone to at least double what it costs today. Even if Apple was willing to do that, there would be no point since no one would buy a $3,000 phone when they could buy the Samsung equivalent for $1,500.

This nonsense is spewed by self-proclaimed "patriots" who know nothing about economics. The fact is that forcing Apple to manufacture phones in the US is not good for America, but it is a boon for its non-American competitors.

 

[Southern Dad]

Apple has a choice. Apple could negotiate some tax incentives to move its assembly and production to the U.S.A. It could be a win/win.
[doublepost=1561045932][/doublepost]

Just about everything you stated is false, and the reason for that is you really have no idea what it takes to manufacture an iPhone, nor the sheer scale of such manufacturing operations.

Foxconn employs nearly 1.5 million people in China who assemble electronics. That's more people than Home Depot, UPS, FedEx, and GE collectively employ in the entire world.

There aren't 1.5 million people in the entire US who have the skills and the desire to assemble electronics for a living, and certainly not in the approximately 5 million who are currently unemployed.

To attract and train that many workers you would need to raise the price of an iPhone to at least double what it costs today. Even if Apple was willing to do that, there would be no point since no one would buy a $3,000 phone when they could buy the Samsung equivalent for $1,500.

This nonsense is spewed by self-proclaimed "patriots" who know nothing about economics. The fact is that forcing Apple to manufacture phones in the US is not good for America, but it is a boon for its non-American competitors.

You are right. It would cost far more to manufacture or assemble in the United States. Actually paying the laborers a fair wage and complying with our regulations would be expensive for Apple. Keep in mind that Samsung's equivalent would be tariffed if it was assembled outside of the U.S.A.

Lenovo assembles computers in the U.S.A. Apple assembled the Mac Pro in the U.S.A. It can be done.

 

[shadowbird423]

I love that idea, but there are two problems I can see with whats going on. The manufacturers are mostly looking at moving their production to communist govt Vietnam. Do whatever we want to do to China and the manufacturers will just go to the next race to bottom (probably authoritarian govt) country (Communist Vietnam is the current hot one). The 2nd is the entire supply chain that makes all the parts has (for the most part) been placed in China and that isn't something just Apple can move.

To effect the whole system you have to have a solution that affects the whole system, but would take a long time (say adjust all imports from countries whose labor costs are not within 15% of ours adjusting for labor & safety costs at 5% per year over 20 years so inflation doesn't go haywire and instant adjustments for currency deflators). What we have, just going after China at the moment (or barely modifying NAFTA to TAFTA) - in the end will change nothing for U.S. production. I was pretty shocked when GM just went ahead and closed those U.S. plants moving production down to Mexico for small cars despite the PR black eye they took from the Administration - they literally don't care.

Spot on, down to the whole GM thing. They will go where their margins are best. This is all window dressing because the supply chain (the thing Cook is so good at managing) won't move quickly. It makes sense for Apple to diversify both portions of manufacturing but they sure as hell won't do it in the US. That ship has sailed.

 

[Southern Dad]

Spot on, down to the whole GM thing. They will go where their margins are best. This is all window dressing because the supply chain (the thing Cook is so good at managing) won't move quickly. It makes sense for Apple to diversify both portions of manufacturing but they sure as hell won't do it in the US. That ship has sailed.

That ship has sailed... Is that akin to throwing your hands up in the air and saying the war is lost? Just give up???

 

[Iconoclysm]

What apple fail to realize is that trump’s tarifs are GOOD for apple, not bad!

All of Apple fails to realize this, but you...the genius first commentor...you know better!

 

[rmoliv]

Assemble your products in the U.S. and pay workers a fair salary.

 

[redscull]

These god damn corporate executives 10’s of millions of dollars worth of bonuses every year when that money can be re-invested into lean manufacturing.

Tariffs are an ignorant solution to the wrong problem that will do absolutely nothing except make the clueless consumer pay more for goods. If corporate execs make too much then enact laws which address that directly. And it will still be cheaper to manufacture in China and pay the tariffs than move manufacturing to America.

 

[Iconoclysm]

Greedy Tim Crook, of course he's against tariffs. His one vision was to manufacture Apple products in China! He's a one trick pony bean counter. Not a visionary.

Apple was manufacturing Apple products in China before Tim Cook was around. In fact, Apple was the last company to move to China after Dell, HP, Compaq, etc.
[doublepost=1561046542][/doublepost]

I trust Trump over Cook. Not even close.

You trust the guy who has lied almost 11000 times publicly in 2 years? You trust him AT ALL? Well, I have to say you have misplaced loyalties and then some....or you're incredibly gullible.

 

[Saipher]

We've watched how successful not tariffing products assembled or manufactured for the U.S. market outside of this country has been for decades. We've paid for it by watching our jobs go out of the country. Unions have begged for tariffs. Does it look like we are in a recession? Our economy is in the best shape that it has been in a long time. Ta-Da!

Get an education and you won’t have to fight for assembling jobs done by the uneducated masses in third world countries. If that’s the kind of jobs you want to promote in the US, maybe you should question your life choices. Ta-Da!

 

[xxray]

In this thread: lots of people who don’t know how a business works but are still commenting opinions anyways

 

[mdnz]

Assemble your products in the U.S. and pay workers a fair salary.

Prepare to pay $2500 dollar for the next iPhone then if they want to keep their margins, which they want of course.

 

[jgdeschamps]

I love that idea, but there are two problems I can see with whats going on. The manufacturers are mostly looking at moving their production to communist govt Vietnam. Do whatever we want to do to China and the manufacturers will just go to the next race to bottom (probably authoritarian govt) country (Communist Vietnam is the current hot one). The 2nd is the entire supply chain that makes all the parts has (for the most part) been placed in China and that isn't something just Apple can move.

To effect the whole system you have to have a solution that affects the whole system, but would take a long time (say adjust all imports from countries whose labor costs are not within 15% of ours adjusting for labor & safety costs at 5% per year over 20 years so inflation doesn't go haywire and instant adjustments for currency deflators). What we have, just going after China at the moment (or barely modifying NAFTA to TAFTA) - in the end will change nothing for U.S. production. I was pretty shocked when GM just went ahead and closed those U.S. plants moving production down to Mexico for small cars despite the PR black eye they took from the Administration - they literally don't care.

Not to start a flame war, but that's not the issue.
Problem has always been that these companies don't want to invest in education for American workers to learn the manufacturing process of microprocessors. Cook, Gou and Trump know this and have publicly stated such fact. Out of those three, two are supposed to be making that investment. Hint: Not Trump.
Same problem here in Mexico. I don't know why Mexico is included in that supposed study of iPhone manufacturing. We have skilled and cheap labor, but microprocessors have not been our forte for mass production at the scale that Apple requires.

 

[ElectricPotato]

Globalists aren’t interested in a distinctly prosperous USA. it’s counter to their vision.”

Why do you believe the USA must be distinctly prosperous? Why not global prosperity? Is that not in your vision?

 

[Cosmosent]

RE: "A U.S. tariff would, therefore, tilt the playing field in favor of our global competitors."

I don't agree with that !

When Apple decided to move the entire iPhone product line so Upscale, they themselves tilted the playing field !

What Apple's Mgmt has Failed to Learn, is that there is a $650 USD or so (smartphone) threshold above which people hesitate to Buy.

Poor Product Planning, combined with the Tariffs, will, IMO, lead to Cook, Schiller, & Cue ALL being Forced Out by the Apple Board by year's end.

And ONLY then, will Apple start to get its act together !

Apple needs new Leadership !

That should be Crystal Clear to anyone who knows the company well !

Apple needs a new Leader with Good Basic Common Sense !

Would love to see Trump force public companies to pay off their Long Term Debt BEFORE buying-back any (more) shares ! ... it's needed to prevent the Ponzi Schemes from continuing !

 

[thadoggfather]

Why do you believe the USA must be distinctly prosperous? Why not global prosperity? Is that not in your vision?

Being American naturally I want America to succeeed. When others want their country to succeed it’s perfectly fine. But When it’s America, it’s somehow offensive and totally out of line And requires relentless apology and explanation.

I don’t prescribe to this

Why *distinctly* you ask? America is only the leader of Western society. If America collapses, freedom as you know or understand it internationally will Eventually follow

 

[Darth Tulhu]

I would love to know what that idio...I mean...our current President said that made Tim Cook put on that expression.

This is too funny.

 

[x-evil-x]

Angry Tim

Tim is most definitely beeker in this pic

 

[MLVC]

My God, there are some insane comments here, why did I even bother reading it?

 

[ibivibiv]

Just about everything you stated is false, and the reason for that is you really have no idea what it takes to manufacture an iPhone, nor the sheer scale of such manufacturing operations.

Foxconn employs nearly 1.5 million people in China who assemble electronics. That's more people than Home Depot, UPS, FedEx, and GE collectively employ in the entire world.

There aren't 1.5 million people in the entire US who have the skills and the desire to assemble electronics for a living, and certainly not in the approximately 5 million who are currently unemployed.

To attract and train that many workers you would need to raise the price of an iPhone to at least double what it costs today. Even if Apple was willing to do that, there would be no point since no one would buy a $3,000 phone when they could buy the Samsung equivalent for $1,500.

This nonsense is spewed by self-proclaimed "patriots" who know nothing about economics. The fact is that forcing Apple to manufacture phones in the US is not good for America, but it is a boon for its non-American competitors.

So to summarize: Because I want a cheap phone we should abandon trying to keep our home country safe and secure. We should embrace abusive labor practices of multi-national corporations or Apple won't be able to compete with companies that do. Wow... you really love cheap phones.

 

[Iconoclysm]

We've watched how successful not tariffing products assembled or manufactured for the U.S. market outside of this country has been for decades. We've paid for it by watching our jobs go out of the country. Unions have begged for tariffs. Does it look like we are in a recession? Our economy is in the best shape that it has been in a long time. Ta-Da!

Wait a minute here, you are saying that the economy has these tariffs to thank? After just a few weeks? Do you have any clue how an economy works?!
[doublepost=1561047302][/doublepost]

So to summarize: Because I want a cheap phone we should abandon trying to keep our home country safe and secure. We should embrace abusive labor practices of multi-national corporations or Apple won't be able to compete with companies that do. Wow... you really love cheap phones.

Nobody is saying anything of the sort. Securing the country has nothing to do with tariffs, not sure why I'm even bothering replying. But this is where they've gotten you, you'll support stupid nonsense in the name of security. Remember that quote everyone was throwing around after 9/11?