In this thread people that make fun of Wal-Mart shoppers saying they don't want to pay more for an iPhone that has some US made parts....hmmm
In short, it is cheaper to manufacture in China. Maybe saves 5% off total manufacturing cost. The consumer never sees this savings but it is 5% more income for the manufacturer. THAT is why companies manufacture in China... so they can be 5% more profitable... not to sell products at a lower price.If not labor then what? Too many regulations?
If the cost of labor is meaningless why did so much manufacturing move to China?
Uh, because Trump JUST took office two days ago, and has implemented ZERO trade policies so far. Giant companies don't throw together plans for 7 billion dollar manufacturing sites based on heresay, in a matter of days. These plans have likely been in the works for months. And Tim Cook has stated publicly for years that he would like to do more manufacturing in the US and that Apple was exploring possibilities where it might make sense. This is clearly one of those possibilities.
And the largest economy along with work force and plenty of manufacturing plants.
Another thought, what city has 30-50,000 people available to work in this huge factory. Does any city in America have that many out of work at this time? This isn't 2008 when cities like Vegas literally had over 100,000 unemployment.
(Please don't quote me on the number), just for reference.
Oh yes, they said they would like to build in the middle of Pennsylvania. No way in gods green earth will they find 30 thousand much less than 50 thousand in the middle of that state.
Or they will put those supply chain, business, AI, manufacturing, and other degrees to work building, running, maintaing, and even staffing those plants. Or even maybe do some design work on how to optimize the iPhone production.Oh yes, I'm sure that they would love to spend many thousands of dollars getting degrees just to get a job that has nothing to do with their chosen profession at 10-12 bucks an hour.
Wrong! Executive order on TPP happened while everyone was arguing over crowd sizes lol.
Hmmmm;
Since 1681 when William Penn was given the land that bares his name, the taxes have been quite high. As of January 2017, Pennsylvania has the highes fuel tax in the country at 58 cents per gallon on gasoline, and a WHOPPING 74 cents on diesel. And what do the people get for all that tax? Toll I-76 costs over 175 dollars for the entire state. I-80 is total garbage, and the new bridges aren't even flat and smooth transition. Most of the two lane roads are so terrible that the speed limit is 45 miles per hour..
I cannot believe anyone believes manufacturing labor cost represents a substantial part of final cost of iPhones. Yeah, maybe an iPhone will cost $20 more. Big deal.
PS: I-76 (PA Turnpike) is separate from the rest of the roads - totally self funded and nowhere near $175 to go from NJ to OH. It's $51.85 cash or $37.03 EZ-Pass for a car to go from NJ to OH. Yes it's BS our gas tax is so high And our property taxes ain't got nothing on our neighbors to the left (NJ) and the rest of our tripe about our roads is BS. They are bad but plenty of 2 lane roads are 55+.
That last big resort in Vegas built by MGM, cost about 7 billion. But that resort is bringing in millions of dollars daily to pay for itself. (Of course, Dubai) bought into it as well.
A 7 billion dollar factory has to get paid for by someone, and unlike gamblers, high end shoppers, and high end rooms, the cost will have to be passed on I would venture.
But of course Tesla's giga factory is costing around 5 billion and it's supposed to reduce the cost of manufacturing batteries.
Unless Foxconn, will be able to manufacture for other companies, I don't see the cost of the iPhone coming down.
Another thought, what city has 30-50,000 people available to work in this huge factory. Does any city in America have that many out of work at this time? This isn't 2008 when cities like Vegas literally had over 100,000 unemployment.
(Please don't quote me on the number), just for reference.
Oh yes, they said they would like to build in the middle of Pennsylvania. No way in gods green earth will they find 30 thousand much less than 50 thousand in the middle of that state.
Let's not get ahead of ourselves here. Let's see how much of our new president's ambitious agenda he can realistically achieve with all the roadblocks the vested interests are sure to put up. While I'm personally glad to see someone in the White House who's beholden to no one, appears to be a people's president, speaks his mind rather than tell us what we want to hear (and then does the opposite), I'm also a realist and will be more than content if he can make major inroads towards implementing only just half of his agenda during the next four years.I think that a second term is becoming a safe bet. At this point Pence winning in 2024 is a possibility...
Outside of automation, there is likely less than an hour of manual assembly per iPhone. You don't have people manually soldering components to boards (all automated). Basically laborers drop in the logic board, glue in battery, connect ribbon cables, and fit the display. Maybe 20 minutes of work per phone.Trust me! It will be a lot more than $20. We are talking about $100+
It is normal for them to work 16 hours a day. Apple need to rush production! We are talking about labors from no benefits and labor protection to all kind of stuff.
So, iPhone costs are going up to please a portion that refuses to understand menial jobs will be gone now and refused to learn the skills to pursue a high-paying job?
No, thanks. You can't go against technology advancement.
Just like how the wall in Germany didn't come down because The Gipper said "...tear this wall down..." Decisions like this this will happen no matter who is in office.
Here is a fun fact. Presidents really don't have anything to do with the economy. They take credit when it is doing good. And get blamed when it is doing bad. Congress is the one responsible for much of what happens in the economy.
As all the Trump supporters have been saying for three months - let's wait and see how he does.I think that a second term is becoming a safe bet. At this point Pence winning in 2024 is a possibility...
So, iPhone costs are going up to please a portion that refuses to understand menial jobs will be gone now and refused to learn the skills to pursue a high-paying job?
No, thanks. You can't go against technology advancement.
Uh - the production will still be done by third-party companies, like Foxconn.Well, one thing I see when there will more Apple (by third party companies like Foxconn) manufacturing here in the US, there will fewer leaks of Apple products.
It's very elitist to think that everyone has a choice in between getting a "menial" job or a high paying job. Getting out of poverty is a difficult thing, something, I assume, you have never had to deal with by your comment. On another note, your comment also suggests that you know nothing about how the economy works. If everyone had high paying jobs then who would wash cars, clean restrooms, or how about teachers? All important jobs that are not high paying.