From my understanding, Flex employees in Texas are above $25/hr in most cases.
So that makes your statement about tariffs offsetting US labor rates more poorly supported.
I'll pass on the rest of the hyperbole.
From my understanding, Flex employees in Texas are above $25/hr in most cases.
The initial one would have been an amazing feat of engineering. After that it's just a block of aluminium machined by a computer running a set program. Aluminium is currently $1.80 per kg...Having listened to people who actually played with it and spoke to Apple at WWDC, this new high-end monitor stand is actually an amazing feat of engineering. Yes it's got a healthy profit built in, but these prices are common in its target market.
The problem is just not labor - China is also geographically close to many of the material sources and chip manufactures (in addition to many parts that is needed). Apple is a for-profit and publicly traded company - they are responsible for making profits for the stakeholders, not the American job market. Companies make billions are not responsible for eating anything - the consumers are. Would you be happy to pay 1.5x to 2x the price of the current iPhone so a few more fellow Americans can work on assembly lines 24x7?
The problem is, out of OECD countries, the U.S. ranks 30th in math.
Hoping and praying is a bad idea.
Aluminum cost is going up because Ford and other automobile manufacturers are using it more and more in their vehicles.
Reality is: a proper college education has become out of reach of the talented student.Tthe U.S. ranks 30th in math Hoping and praying is a bad idea.
America can't compete in manufacturing. That's just reality.
Trump's 6:00 am tweet about this is gonna be LIT.
Margin percent is what it is. There is no reason that because the product is more expensive that there is more room for overhead. If Apple wants to hit 60% margin, they wanna hit 60% margin. My company sells a few products that are high sales price but a much smaller margin while we have products less than half the cost to the consumer but our margin is 25% or higher than that “high end” consumer product. Such as it is for many products.With a price tag of $5999, you'd think that there would be enough "overhead" to pay an American worker a living wage to, at the very least, assemble these. The iMac we just bought for a client was assembled in Pennsylvania.
Labor costs would be higher, but they would save on the tariff (read as tax) when importing the unit back into the United States.
Zen would be:Perhaps declare it a national security issue?
Trump's 6:00 am tweet about this is gonna be LIT.
Apple maintaining their margins doesn't drive pricing down. No logical gymnastics can make that a reality. Your claim was Apple was keeping cost as low as possible to drive down pricing for consumers. Nope.Apple shoots for around 40% margin on these products. They stay remarkably consistent with this when reporting their financial results. If the production costs are higher, Apple will still want to hit its margin targets. This means the price would be higher.
With a price tag of $5999, you'd think that there would be enough "overhead" to pay an American worker a living wage to, at the very least, assemble these. The iMac we just bought for a client was assembled in Pennsylvania.
Can’t compete with slave labor. China is nothing without it and that’s all they have to offer. It’s disgusting.America can't compete in manufacturing. That's just reality.
Having listened to people who actually played with it and spoke to Apple at WWDC, this new high-end monitor stand is actually an amazing feat of engineering. Yes it's got a healthy profit built in, but these prices are common in its target market.
If you read the links, the salaries of American workers were, at most, the third most significant issue in Apple's decision. #1 was the lack of support manufacturers for items Apple would not make themselves. For example, screws. On the previous MacPro, Apple was unable to find contract manufacturers able to make more than quantity 1000 custom-designed screws per day. They ended up having to order most of their screws from China, elongating the supply chain. Now, as anyone who thinks about it for 10 seconds would realize it, you want to plan your supply chain around high-value components, not screws. Imagine having thousands of high-end microprocessors and partially built subassemblies sitting around in inventory, waiting for some screws.
#2 was the fact that it is really tough to get Americans to work second (and THIRD) shift. That means that your facilities are going to be sitting around idle a good percentage of the time, even when there is unfulfilled demand.
I suspect most people here don't realize that unused inventory and idle facilities can be a bigger extra expense than high salaries, and has no ancillary benefit of what some might think of as "good citizenship."
the consumer electronics industry has long since moved all manufacturing off shore
the vacuum tube Zenith TV was built in the US?
1st world countries should not even try manufacturing. These governments should hope & pray for citizens good at math. I cant understand the American obsession with manufacturing jobs.
It can compete, but not at slave wages. That's why the U.S. still ranks high in agricultural output - farm workers are exempt from most minimum wage requirements as specified by the FLSA. It also explains why immigrants from southern climes form the largest portion of ag workers. If Trump really was successful in closing the southern borders, the ag and construction industries in the US would be crippled. Only immigrants are willing to work for dirt poor wages (still better than what they get at home). With the demise of labor unions in the US, it's just a matter of time until the US gets "competitive" again with manufacturing. Of course, commensurate with that, most people couldn't afford to buy Apple computers while making substandard wages. Even old Henry Ford figured that out, reasoning that decent wage earners would provide a good customer base.America can't compete in manufacturing. That's just reality.