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Apple Watch, AirPods, and Other Apple Goods to Be Exempt From China Tariffs
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Apple's product sold to us in the UK simply have the $ symbol replaced by the £. Exactly same figures. For example, iPhone Xs start at $999 in US and £999 IN UK. The VAT we pay for that is £167. 999-167= 832. £832 right now converts to $1,093.30. So we still pay over £94 over the price of the same product in US.
Bang on and it is an apple tax to the Uk
As i mentioned in another thread, i brought the note 9, in the US it was advertised at $999 at keynote, but sold in the uk for £899, the iphone xs is advertised at $1099 and in the UK its priced as £1099.
Don't read Breitbart but aren't they one of the ones that seem to support the President on absolutely everything, meaning they would be pro tariffs?
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Unfortunately the current day Democratic party is shifting toward Bernie.
Who is still not a Democrat in any form! This man, Bernie Sanders actually ran to be the Democratic candidate for the Presidency!
These tariffs are really taxes - essentially sales tax that varies based on the country and the product. And these taxes are going to cost me (and many people on MacRumors) money. If fully implemented, it'd be about a 20% tax on the iPhone. So now your base model Xs goes from $999 to $1200. And those of us that have a lot of AAPL stock would get hit hard too, not to mention the millions of people whose jobs depend on Apple. For now, it's delayed/exempted, but that can change with the whims of the administration.
It's essentially a tax on having a president that does not understand trade - he actually thinks a $500 billion trade deficit is the same as losing $500 billion, which of course it is not. Guess he didn't pay attention to macro economics while getting his undergraduate business degree. And as a reminder, the executive branch does not have the power to impose tariffs outside of "national security" emergencies - so it's making up a national security issue that doesn't exist.
It's essentially a tax on having a president that does not understand trade - he actually thinks a $500 billion trade deficit is the same as losing $500 billion, which of course it is not. Guess he didn't pay attention to macro economics while getting his undergraduate business degree. And as a reminder, the executive branch does not have the power to impose tariffs outside of "national security" emergencies - so it's making up a national security issue that doesn't exist.
Trump proposed NO TARIFFS and NO SUBSIDIES at G7. Canada and EU rejected it. So there you go.
Canada spends $29 billion on subsidies. Not really sure if there is a country that doesn't subsidize. EU subsidizes Airbus, for example.
No thanks on the Canadian healthcare system where the average wait for an MRI is 10.8 weeks:
https://www.fraserinstitute.org/studies/waiting-your-turn-wait-times-for-health-care-in-canada-2017
But speaking of subsidies, the government paying for healthcare is a HUGE subsidy. Companies in the USA have to pay for the bulk of health insurance for all of their full time employees. In Canada, the government pays for it, which gives Canadian companies an advantage.
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It's what the market has dictated.
The market dictates what the price of an iPhone is, not the cost of production and delivery. The raw cost of an iPhone X is $357. Obviously, a lot of people are willing to pay much more than that.
The China trade deficit is the result of China impeding American (and everyone else's) companies importing their products. That would be the "unfair" aspect of our trade with that country, and the result of those policies has been the decimation of the U.S. middle class and U.S. manufacturing over the last 20 years.
Obama told us "those jobs are gone", however we have just seen the biggest increase in manufacturing jobs in the USA in 23 years, because of the Trump policies.
We have seen 20X job creation because of the tariffs over job loss because of the tariffs.
Carrier pays someone in Mexico $2.75 an hour versus $18 an hour in Indiana. And then they put the products on trucks and drive them over the border with no tariff. That is the reason why the USA's middle class has suffered so much. The Democrats used to care about the working class. That changed. And that is precisely why Trump won Blue states Michigan, Wisconsin, and Pennsylvania.
Obama said those jobs are gone. They aren't, if we don't want them to be gone. Globalists and corporations just want the cheapest labor. It's the reason U.S. companies bring in cheaper labor from India and China for upper-middle class STEM jobs. It's the reason we don't enforce our immigration laws. All of it has dramatically harmed lower and middle-class Americans. It's the reason Apple has people in China assemble their phones in working conditions that literally results in the workers committing suicide so often they put nets on the buildings these people work/live to keep them from jumping off.
[doublepost=1537302765][/doublepost]People who build iPhones in China live in dorms, just like the African slaves who build the skyscrapers in Dubai. I mean, how much do you expect Apple to spend on building a $999 iPhone X? They already spend $357! That's hardly any profit at all! lol
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I don't get it.
Tim hates child labor, forced labor, global warming, and communism.
But he loves raising taxes. Well, probably except his own. He's like Warren Buffet, who say they love higher taxes and wish they paid more, but have armies of accountants figuring out how to pay less in taxes.
So why does he care about tariffs?
Tim hates child labor, forced labor, global warming, and communism.
But he loves raising taxes. Well, probably except his own. He's like Warren Buffet, who say they love higher taxes and wish they paid more, but have armies of accountants figuring out how to pay less in taxes.
So why does he care about tariffs?
@tallscot & @thadoogfather ...u all seem to have capability of doing intelligent research, unlike the masses of typical Dem & Rep voters, online forum posters, social media ranters. In the decade or so since I posted here on MR more regularly, life's a beach...caught up with me in lala land, v. v. hard. I come to find that for the most part, ranting may let off steam, but you rarely change anyone's positions...no McCain's left sadly. It's more or less beating your heads against a brick wall for the most part.
Take JPack, that quote above is either intentionally trying to mislead ppl, much like the thouroughly represhensible Judicary antics of Harris & I'm Spartacus, etc. My guess, as I could be wrong, JPack just does like the masses online, gleans and remembers whatever floats their current stance/narrative.
Uh, from the other thread, Googles Andy Rubin has long ago been setting up Foxconn with robotics, and Foxconn wants to replace most of those lower wage assembly jobs in mainland China with robots...no more suicides to deal with, more efficiency in China where much of the manufacturing CNC, etc, has advanced beyond American tech, that they have over the years 'acquired' from guess who?
What every1 here seems to be doing the 800lb Gorilla in the room, as though Trump never even mentioned it, is the billions of our future profitability in the US (which Tim Cook, doesn't seem to give a damn about) is in IP theft done by the Chinese gov over the last decades, not years. While we waste most of our energies focusing on the rest of the world, including Russia, China slowly, methodically is poised to take over the US superpower lead, as well as their long-term goals of replacing the US/world as the leader in all newer, technological advancement...you know what Tim Cook is so excited about recently, China will surpass all very soon...if things stay the course as US Dem &Rep interests make billions of of this arrangement. You think Tim Cook cares about Chinese workers, anymore than Foxconn's CEO?
It's not the trade war/tariff wars that are at the nexus of the US's real problem, which is ip theft and China's current & future gov policies, designed to take US know how, and implement their own 'copycat' successors as they slowly pass by the aging dinosaur that is the future of the US.
https://www.scmp.com/news/china/soc...w-graduates-earn-us588-month-less-cost-iphone
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The cheapest iPhone 7 model, with a 32-gigabyte capacity, costs 5,388 yuan in mainland China, where the phones are highly popular.
Graduates with masters degrees offered monthly salaries of 1,600 yuan at job fair in northern China
By comparison, US college graduates’ median starting salary is US$47,358 annually, or around US$3,950 a month assuming a 12-month package, according to a report by the non-profit National Association of Colleges and Employers. The monthly amount is enough to buy six 32GB iPhone 7s in the United States, where the phone costs US$649.
The annual salary figure was based on a survey of 5,600 bachelor’s degree students who indicated they would be graduating or had already graduated in the 2015/2016 academic year.
In Japan, the starting monthly salary for college graduates was about US$1,800 in 2015, according to data from the country’s Ministry of Health, Labour and Welfare.
New graduates in Malaysia – whose average GDP per capita is the closest to China’s among other Asian countries – earned between US$491 and US$585 in 2015, according to recruitment platform JobStreet.
Salary hopes slide: Hong Kong students lower expectations amid slowdown
The survey showed that Chinese graduates in the nine southern provinces, the heartland of the hi-tech manufacturing industry, had the highest income, at 4,676 yuan a month, while those in the traditional heavy industrial northeast’s three provinces earned the least, at 3,647 yuan per month.
However some said they felt the figures in the survey were higher than what they actually earned.
Bai Lifei, 26, from the city of Baiyin in Gansu, one of China’s poorest provinces, said starting salaries there for fresh graduates were only between 1,800 and 2,500 yuan a month.
“For those who have already worked for several years, they earn 2,500 to 3,500 yuan,” he said.
Even in Guangzhou, in the affluent Guangdong province, average salaries for new graduates were lower than those in the survey, according to Tang Jie, who graduated last year from Ningbo University and is now working in a local Guangzhou firm.
Most of his classmates made around 3,000 yuan a month, he said, and most lived from paycheck to paycheck, spending all their earnings each month.
This article appeared in the South China Morning Post print edition as: Graduate Pay on the rise but still not in iPhone range
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For the few hours of searching I did to debunk the seemingly wholely inaccurate post by JPack, I found no indication that any so-called "gen 10.5" factory would produce screens for either iphones, watches, laptops...all are for large screen TV.
https://www.flatpanelshd.com/news.php?subaction=showfull&id=1501046086
"This was decided at a board meeting on July 25, 2017, the company announced. LG.Display will make an up-front investment of KRW2.8 trillion ($2.5 billion USD) in the 10.5-gen production line that will be located in the upcoming P10 factory in Paju, South Korea. Further investments are required, the company added.
Furthermore, LG.Display will invest in a new 6-gen production line for flexible OLED panels. This will almost double production capacity and enable LG.Display to produce 120 million 6” smartphone displays per year. Apple is rumored to be involved but the companies have not commented publicly on the matter."
Looks like Samsung soon to be announced folding OLED flagship? will be using OLED from not 10.5, but brand spanking new, according to JPack, obsolete 6gen factory, lol.
Can't find a link that supports contention in this article that says, it is mandatory for LCD plant to follow any OLED implementation, but seems that's how they operate...Samsung included.
https://asia.nikkei.com/Business/Companies/Foxconn-opts-to-make-smaller-displays-at-Wisconsin-plant
So, 6th gen, in wisconsin, could with enough tooling/investment, produce those secret ipXr LCD's of the future, as well as the OLED's...how long that takes, who knows, but not decades.
Post #99, last vid link w/no mention of what that was about...here's the link to the transcript, since ppl rarely take the time to watch videos that are more than a minute long over the net.
Video
Has China been duping the US for nearly half a century?
http://www.foxnews.com/transcript/2018/08/12/has-china-been-duping-us-for-nearly-half-century.html
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PILLSBURY: Well, China enjoys enormous goodwill inside our government, inside a number of governments around the world. They've worked very hard to earn that goodwill because frankly, it pays off for them. If they had not had our market for their exports over the last 40 years, if they had not had our direct investment, and our scientific exchange programs, the help of our companies, they wouldn't be the great power they are today.
They're number two in the world. By some statistics, they are already number one in overall size of their economy. So they've done this quite consciously, that they got advice from Nobel Prize winning economists from the World Bank, 40 years ago. How do we do this? How do we become number one in the world?
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yes, this goes back to a time before the majority here were born...but it is very important to follow the paper trail.
"Then the next step is, well, which companies in America have those processes? And then they would go through the front door and try to get some of it, what they couldn't get through the front door, they would steal through the back door. And frankly, one of the first things they did is wake up Jimmy Carter at 3:00 in the morning, his science adviser was in Beijing, and the Chinese made clear, "We want an agreement, that all of our students who want to go America in science can go, and the National Science Foundation will share all American scientific discoveries quickly with China.""
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LEVIN: They have 300,000 students here?
PILLSBURY: Yes.
LEVIN: I didn't even know that.
PILLSBURY: Yes, it's over 300,000. The students are mainly in hard sciences and engineering, so they're focused on helping Chinese economic growth in this next generation of manufacturing processes. Sometime they joke and say "We're going to win Nobel Prizes." That base of hard currency paying students is important to them, that they not be challenged or investigated by the FBI, which the FBI director has already raised in public his concern about these students.
A lot of them are in laboratories. They're doing state of the art research. They believe it's okay to go back to China with the equipment, the materials, the patents that they got as graduate students, and there's a lot of success stories where they've done this."
"One of my Chinese colleagues in Beijing has set up a team that succeeded to bring back more and more of these students. Some were staying in the west, perhaps because they love liberty and feared going home to a nation of tyranny, and this team gave them all the incentives -- very high salaries, special living areas, their own laboratories to work on their new scientific projects and more and more of these people are going home. They're called the sea turtles because sea turtles sort of return to where they were born, and this has been a huge boost for Chinese technology and China's growth rate."
read the rest in the link above, or buy the book
.Found the other link from the other thread I wanted to post on Hunter Biden, wonder why the mods don't just close that one, and post a link there to this thread?
https://thehill.com/blogs/blog-brie...biden-and-kerrys-sons-inked-deal-with-chinese
Given Biden's recent comments at the human rights conference the other day, makes him seem like the ultimate hypocrit.
For those lefties that don't like any Breibart, here's a link from that paragon of accurate reporting...faux news CNN
CIA official: China wants to replace US as world superpower
https://www.cnn.com/2018/07/20/politics/china-cold-war-us-superpower-influence/index.html
""By their own terms and what Xi enunciates I would argue by definition what they're waging against us is fundamentally a cold war, a cold war not like we saw during the Cold War, but a cold war by definition. A country that exploits all avenues of power licit and illicit, public and private, economic and military, to undermine the standing of your rival relative to your own standing without resorting to conflict. The Chinese do not want conflict," Collins said."
Seems Pillsbury above, thinks it's almost too late to stop them, US & the world needs to wake up, pull their heads out of their rich sandbox.
The 'genius' behind Tim Cook, old article below, supply chain master is Cook...except if China kicks Apple out of the country, which would do Apple some good, might hurt stock & jobs in teh USA, but for the long-term, not just stockholders mentally, for the future of the world is at stake...hey, there are those billionaires advising Trump, you know, those Dem & Rep billionaires, like oh Bill Gates, etc:
http://fortune.com/2008/11/24/apple-the-genius-behind-steve/
https://www.businessbreakingnews.ne...ut-100-tariffs-on-chinese-goods-gordon-chang/
https://www.foxbusiness.com/economy/us-may-have-to-put-100-tariffs-on-chinese-goods-gordon-chang
"“He should do it at the 25 percent rate, rather than the 10 [percent rate],” Chang, author of “The Coming Collapse of China,” said during an interview on “Sunday Morning Futures.” “I would even go higher, and the reason is the Chinese have been stealing hundreds of billions of dollars of U.S. intellectual property each year. That’s what these tariffs are intended to remedy. And the Chinese are not stopping. So clearly we’ve got to make the costs higher.”"
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“The real reason why Apple has a problem is because it has a supply chain that’s very difficult to move,” Chang said. “It’s got Foxconn, its contract manufacturer, they’re in China. It would take a number of years for Foxconn and Apple to move elsewhere. Other companies, basically they can move a lot quicker … So China’s threats against other companies are pretty hollow. Against Apple it’s a real threat.”
“We’ve got to stop China’s theft because we have an innovation-based economy,” he said. “If we cannot commercialize that innovation we don’t have very much of an economy.”
Meanwhile, U.S. companies – specifically Apple – could be used as “bargaining chips” in the trade war between the two nations, according to China’s state-backed People’s Daily newspaper, which published an article in early August saying that the tech giant benefits from the country’s “ample supply of cheap labor” and needs to share more of its profits with the local population in China.
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Interesting...what happened behind closed doors to make this happen?
I guess we don't need to know that part
I can haz Apple Watch? Awesome. Vote Trump for 2020!
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As return favor, there will soon be an Apple Retail Store located inside NYC Trump Tower, on the 29th floor. Next to Ivanka's 1500-square-feet boudoir.
[doublepost=1537323032][/doublepost]
As return favor, there will soon be an Apple Retail Store located inside NYC Trump Tower, on the 29th floor. Next to Ivanka's 1500-square-feet boudoir.
As happy as I am that apple products aren't being taxed - people that can afford thousands of dollars of luxury products should eat the brunt of the tariffs.
...Yay for large lobbies and staying cordial with the Trump Administration i guess.
...Yay for large lobbies and staying cordial with the Trump Administration i guess.
Did you people forget that Tim Cook was the most vocal tech industry CEO that spoke against the tariffs in the first place?
With Amazon's Bezos, Microsoft and the Google execs right behind him, of course they spoke out against the tariffs, even at the risk of being Twitter-flamed and threatened by Trump. The tech industry has the most to lose should either side (China or US Gov) choose to target the import/export of tech components.
Who knows what went on behind closed doors for Trump's Cabinet to make a selective decision to exempt certain products (like Apple's AirPods). What will be telling in the coming days is that CEO Cook continues to publicly criticize the tariffs (trade war) strategy even after the most important Apple products have already been exempted. THAT is what will matter.
You honestly don't think the cost of production has a role in the price of an iPhone? The cost you quote above is based on supply chain estimates of raw materials and labor, which does not include the whole cost related to the product. AAPL gross margins on iPhones are around 38%, which puts you around $720. If you add a 20% tax to the total, AAPL has a choice of either eating that $200 and taking their margin to ~8%, passing along the price to consumers, or some combination. The likelihood is that AAPL loses profits and consumers pay more.
I mean, this is really a pretty laughable statement. You've only seen the very beginning of effects from the tariffs, as most of them haven't even been implemented yet. But if things stand the way they are, you are going to have massive job losses. There's already enormous pressure on agriculture, and there are far more jobs that depend on steel imports than on steel production.
The manufacturing jobs are lost mostly to automation, not to globalization. Even in the steel factories that are reopening, they are hiring small fractions of the people they used to employ.