Key Apple Supplier Eyeing Production Move to US in Response to Tariffs

[cocky jeremy]

We won’t have a country left in 2 years. Unless the Orange Character/Anti-Christ gets impeached.

So dramatic. I seem to remember this same BS in 2016.

 

[JapanApple]

That was never in question with such tariffs IMHO. The question is how much more products will cost and whether the new manufacturing business will offset the cost.

The same could have been achieved with subsidies, but with subsidies you would have had a much clearer picture of the cost. With tariffs it's more hidden, but the cost is still there.

Ever heard of sarcasm? That is what I was getting at. Nevertheless, nothing is believable until we see it.

 

[dannyyankou]

Get ready to pay $300 for a pair of AirPods to go with your $200 pair of New Balance shoes

https://www.newbalance.com/made-in-usa-and-uk/made-in-us/?ICID=CLP_PGP_MADE_PHASE1_CAROUSEL_NB-2966_MW

 

[sw1tcher]

In addition to its operations in China, Luxshare has manufacturing and research facilities in several countries including Malaysia, Thailand, Vietnam, Mexico, and the United States.

What? Companies actually considering moving manufacturing to the US? Who would've thought...

Oh my goodness, industry moving back to the United States. Who would’ve thought

Luxshare isn't moving back to the U.S. They already have a manufacturing facility in the U.S. At most they're looking to increase the percentage of products made in the U.S.

The new diversification plan will see companies move some manufacturing to the U.S. while keeping some in foreign countries similar to how companies diversified away from China (but not completely) by moving some manufacturing to India, Vietnam, etc.

 

[turbineseaplane]

Any of this that happens will be minor and the cost to produce things dramatically higher.

None of this is going to be a “win” for the US or its consumers.

 

[Plutonius]

We won’t have a country left in 2 years. Unless the Orange Character/Anti-Christ gets impeached.

What's the solution then ?

The U.S. is 37 Trillion (37,000 Billion) in debt and it's increasing by 2+ trillion / year. We are spending more in interest payments on the debt than on the defense budget and medicare. Much of the manufacturing has pulled out of the U.S. and in 2 years what will be left ? How should we get the manufacturing to return to the U.S. ?

We would not have a country left if things continued the way they were.

People are willing to sacrifice the U.S. future for cheaper goods and higher stock prices now.

 

[sw1tcher]

Time to bring jobs back home to America.

Time to bring back low-paying jobs with long hours back to the U.S.?

Would you personally take one of these jobs assembling iPhones?

 

[turbineseaplane]

We won’t have a country left in 2 years. Unless the Orange Character/Anti-Christ gets impeached.

It’s amazing how people don’t get that.

Allowing a maniac to completely destroy everything down to the studs is not the beginning of some great new future.

 

[turbineseaplane]

Time to bring jobs back home to America.

How does a $2/hr for 14-18 hours a day while living in a dormitory with suicide nets sound to you to?

Shall we put your name down as “interested?”

 

[ELman]

Time to bring back low-paying jobs with long hours back to the U.S.?

Would you personally take one of these jobs assembling iPhones?

When welfare checks pay more it's hard to actually work.

 

[rishey]

What's the solution then ?

The U.S. is 37 Trillion (37,000 Billion) in debt and it's increasing by 2+ trillion / year. We are spending more in interest payments on the debt than on the defense budget and medicare. Much of the manufacturing has pulled out of the U.S. and in 2 years what will be left ? How should we get the manufacturing to return to the U.S. ?

We would not have a country left if things continued the way they were.

People are willing to sacrifice the U.S. future for cheaper goods and higher stock prices now.

Thank you for explaining to me that 37 trillion is actually 37,000 billion. I had no idea.

 

[sw1tcher]

What's the solution then ?

The U.S. is 37 Trillion (37,000 Billion) in debt and it's increasing by 2+ trillion / year. We are spending more in interest payments on the debt than on the defense budget and medicare. Much of the manufacturing has pulled out of the U.S. and in 2 years what will be left ? How should we get the manufacturing to return to the U.S. ?

If the U.S. wants to go back to the time when U.S. manufacturing was booming (U.S. manufacturing peaked in the 1970s), then we also should move the tax rate back to that time period. That will help pay down the debt.

Instead, Trump and Congress are focused not just on extending Trump's tax cuts, but making them permanent.

 

[Le0M]

More than moving into the USA, I think companies are actually more likely to move out.

 

[citysnaps]

You know how long and expensive thats going to be? Its going to be YEARS before any assembly plants for apple products are up and running here in the US with all the red tape they got to go though, environmental evaluations, construction, etc?

Also...Who the hell are you going to staff these assembly plants with? Americans who dont have the skill set, the experience or the desire to do this kind of labor especially at the same prices people in china are doing it for.

Now, lets be totally real here...the conditions over seas where all these electronics are assembled are messed up no doubt, but they exists because people there are willing to do it for what little pay they get. Its not slavery, they are getting paid and anyone there (as far as i know) can get up and quit and walk out at any time...they are not held there at gunpoint (again as far as i know)....

BUT...do you really think us fat, lazy entitled americans are going to do the same labor, for the same pay? You best think otherwise because an American part time worker doesn't want to flip burgers without benefits for minimum wage. You really think they are going to work 12-18 hour shifts at less then minimum pay with no benefits building electronics?

NEVER HAPPENING. So even if you do bring back the jobs here in the States...the prices are going to increase so much for the product just to offset the cost of the Americans salary to build them and the items are going to be unafforable to most people, then the company is going to go under because they cant sell the items they are spending a fortune on building because it cost too much for them to build them here in the US.

Its a sad cold reality of business. Build for low, sell for high. Supply and demand. Apple isn't the only company doing that. Its been done this way for CENTURIES.

Trump still thinks its the 1800s where people are going to work in unsafe workhouses (Yes im using a Charles Dickens term here) using child labor for pennies, so the wealthy can get even wealthier!

The man is a idiot pure and simple and he's tanking the economy just to have the world kiss his ass, and he even said it. This is nothing more then a massive ego trip for him, and i got to hand it to the chinese for not kissing his ass.

Look..as an american i want good jobs here for myself and my fellow citizens. of course. I want jobs where we can make a livable wadge doing something we believe in and can be proud of. But i honestly do feel the days of us going to the assembly plant to build a product to sell on the market at retail, and have a dependable livable income were we can afford a home and raise a family, those days are behind us now.

Its not the industry revolution. Its not the world war 2 post war baby boom. its 2025. We live in an era of computers and automation and yes, sadly cheep overseas labor to assemble things and thats because of globalization for good or ill and thats been the way things have been done for nearly 40 years now and going backwards as trump is trying to do, is just idiotic.

This is just a major ego trip for him, a shallow ego from a idiotic man thats been forced on all of us!

Spot-on assessment.

trump is still stuck in the early 1950s with respect to large scale US manufacturing. While Apple and and other high-end tech companies employ and require turn-on-a-dime JIT manufacturing. Which China has down to a science.

 

[coolfactor]

You know how long and expensive thats going to be? Its going to be YEARS before any assembly plants for apple products are up and running here in the US with all the red tape they got to go though, environmental evaluations, construction, etc?

Also...Who the hell are you going to staff these assembly plants with? Americans who dont have the skill set, the experience or the desire to do this kind of labor especially at the same prices people in china are doing it for.

Now, lets be totally real here...the conditions over seas where all these electronics are assembled are messed up no doubt, but they exists because people there are willing to do it for what little pay they get. Its not slavery, they are getting paid and anyone there (as far as i know) can get up and quit and walk out at any time...they are not held there at gunpoint (again as far as i know)....

BUT...do you really think us fat, lazy entitled americans are going to do the same labor, for the same pay? You best think otherwise because an American part time worker doesn't want to flip burgers without benefits for minimum wage. You really think they are going to work 12-18 hour shifts at less then minimum pay with no benefits building electronics?

NEVER HAPPENING. So even if you do bring back the jobs here in the States...the prices are going to increase so much for the product just to offset the cost of the Americans salary to build them and the items are going to be unafforable to most people, then the company is going to go under because they cant sell the items they are spending a fortune on building because it cost too much for them to build them here in the US.

Its a sad cold reality of business. Build for low, sell for high. Supply and demand. Apple isn't the only company doing that. Its been done this way for CENTURIES.

Trump still thinks its the 1800s where people are going to work in unsafe workhouses (Yes im using a Charles Dickens term here) using child labor for pennies, so the wealthy can get even wealthier!

The man is a idiot pure and simple and he's tanking the economy just to have the world kiss his ass, and he even said it. This is nothing more then a massive ego trip for him, and i got to hand it to the chinese for not kissing his ass.

Look..as an american i want good jobs here for myself and my fellow citizens. of course. I want jobs where we can make a livable wadge doing something we believe in and can be proud of. But i honestly do feel the days of us going to the assembly plant to build a product to sell on the market at retail, and have a dependable livable income were we can afford a home and raise a family, those days are behind us now.

Its not the industry revolution. Its not the world war 2 post war baby boom. its 2025. We live in an era of computers and automation and yes, sadly cheep overseas labor to assemble things and thats because of globalization for good or ill and thats been the way things have been done for nearly 40 years now and going backwards as trump is trying to do, is just idiotic.

This is just a major ego trip for him, a shallow ego from an idiotic man thats been forced on all of us!

I agree, but note, there is a difference between supplier and assembler. Luxshare is a parts supplier, with other customers.

I wish all companies would just stand firm against the wannabe-man.

 

[aidler]

Good move for the involved suppliers and for Apple to preserve their revenue, but it's not an ideal solution for the American consumer. Americans will have to work more (in these companies) for no doubt minimum wage, and prices will substantially increase nevertheless. Not by 100 %, like with the tariffs, but still substantial, and combined with the fact that Americans will get poorer overall, that's still not a good situation.

 

[Plutonius]

Get ready to pay $300 for a pair of AirPods to go with your $200 pair of New Balance shoes

https://www.newbalance.com/made-in-usa-and-uk/made-in-us/?ICID=CLP_PGP_MADE_PHASE1_CAROUSEL_NB-2966_MW

Tariffs are based on the production cost of the item and not the retail price of the item.

The retail price of AirPods is currently $129 . Since Apple charges very high margins on their products, we can assume the production cost might be $75 . To cost $300 after tariffs, the tariff has to be $225 which would be a 300 percent tariff.

Not to say that the tariffs couldn't eventually hit 300+% in a tariff war but I think that many people are over exaggerating the expected consumer price increases (they are applying the tariff cost to the retail prices).

Also, not everything in a tariff can be passed on to the consumer. Consumers are very price sensitive so they will not buy the item or will buy an alternate item if the cost is too high. The manufacturers will end up eating most of the tariff (lower earnings).

 

[sw1tcher]

When welfare checks pay more it's hard to actually work.

😂

https://www.axios.com/2024/10/11/trump-welfare-government-aid-social-security

Republicans spent decades railing against welfare recipients. Now, they're deeply reliant on them to win elections.

Why it matters: The explosion of people getting 25% or more of their income from government aid — and Republican reliance on their votes — vividly explains the rise of former President Trump and the remaking of the Republican Party.

Trump saw what establishment Republicans missed:

• Residents in more than half of America's counties (53%) drew a substantial share of their total income — more than a quarter — from the government in 2022, according to a new study, "The Great Transfer-mation," by the Economic Innovation Group, a bipartisan think tank.

Read this Wall Street Journal story, "Americans Are More Reliant Than Ever on Government Aid", where we first saw the study, to go deeper. It's worthy of your time.

• The Smart Brevity version: Rural areas, in particular, grew dramatically dependent on everything from Medicaid to food programs as good, higher-paying jobs disappeared.
• Overwhelmingly, these counties vote Republican. The transfer payments are funded in part by taxpayers in rich blue areas.

 

[turbineseaplane]

Tariffs are based on the production cost of the item and not the retail price of the item.

Which is not disassociated from production costs, required operating margins and R&D spend and planned investment.

There isn't just magic money waiting to be wasted on tariffs and retail prices will be mostly "fine".

 

[dannyyankou]

Tariffs are based on the production cost of the item and not the retail price of the item.

The retail price of AirPods is currently $129 . Since Apple charges very high margins on their products, we can assume the production cost might be $75 . To cost $300 after tariffs, the tariff has to be $225 which would be a 300 percent tariff.

Not to say that the tariffs couldn't eventually hit 300+% in a tariff war but I think that many people are over exaggerating the expected consumer price increases (they are applying the tariff cost to the retail prices).

Also, not everything in a tariff can be passed on to the consumer. Consumers are very price sensitive so they will not buy the item or will buy an alternate item if the cost is too high. The manufacturers will end up eating most of the tariff (lower earnings).

I was referring to AirPods Pro, I meant to say that.

 

[Plutonius]

Thank you for explaining to me that 37 trillion is actually 37,000 billion. I had no idea.

I think that everyone knows that 37 trillion is actually 37,000 billion but many people look at a trillion as an abstract number. When you mention 37,000 billion, it's something that they can relate to.

 

[chfilm]

To move out of the US again as soon as Putin has left the white house?

he's never gonna leave voluntarily ^^

 

[arvinsim]

I find it funny that some people are already hailing this as a win when the keyword in the article is "eyeing".

If you believe that they will actually do it, I have bridge to sell you.

 

[turbineseaplane]

I find it funny that some people are already hailing this as a win when the keyword in the article is "eyeing".

If you believe that they will actually do it, I have bridge to sell you.

Supporters are desperate for anything to counter the pretty obvious narrative that supporting him again in 2024 looks to have been a wholesale mistake on every front other than pure white nationalism and racism.

 

[Unami]

You know how long and expensive thats going to be? Its going to be YEARS before any assembly plants for apple products are up and running here in the US with all the red tape they got to go though, environmental evaluations, construction, etc?

Also...Who the hell are you going to staff these assembly plants with? Americans who dont have the skill set, the experience or the desire to do this kind of labor especially at the same prices people in china are doing it for.

Now, lets be totally real here...the conditions over seas where all these electronics are assembled are messed up no doubt, but they exists because people there are willing to do it for what little pay they get. Its not slavery, they are getting paid and anyone there (as far as i know) can get up and quit and walk out at any time...they are not held there at gunpoint (again as far as i know)....

BUT...do you really think us fat, lazy entitled americans are going to do the same labor, for the same pay? You best think otherwise because an American part time worker doesn't want to flip burgers without benefits for minimum wage. You really think they are going to work 12-18 hour shifts at less then minimum pay with no benefits building electronics?

NEVER HAPPENING. So even if you do bring back the jobs here in the States...the prices are going to increase so much for the product just to offset the cost of the Americans salary to build them and the items are going to be unafforable to most people, then the company is going to go under because they cant sell the items they are spending a fortune on building because it cost too much for them to build them here in the US.

Its a sad cold reality of business. Build for low, sell for high. Supply and demand. Apple isn't the only company doing that. Its been done this way for CENTURIES.

Trump still thinks its the 1800s where people are going to work in unsafe workhouses (Yes im using a Charles Dickens term here) using child labor for pennies, so the wealthy can get even wealthier!

The man is a idiot pure and simple and he's tanking the economy just to have the world kiss his ass, and he even said it. This is nothing more then a massive ego trip for him, and i got to hand it to the chinese for not kissing his ass.

Look..as an american i want good jobs here for myself and my fellow citizens. of course. I want jobs where we can make a livable wadge doing something we believe in and can be proud of. But i honestly do feel the days of us going to the assembly plant to build a product to sell on the market at retail, and have a dependable livable income were we can afford a home and raise a family, those days are behind us now.

Its not the industry revolution. Its not the world war 2 post war baby boom. its 2025. We live in an era of computers and automation and yes, sadly cheep overseas labor to assemble things and thats because of globalization for good or ill and thats been the way things have been done for nearly 40 years now and going backwards as trump is trying to do, is just idiotic.

This is just a major ego trip for him, a shallow ego from a idiotic man thats been forced on all of us!

Thing is, those factories - if they ever materialize - are mostly going to be manned with AI-controlled robots. So, there will probably not be a shortage in cheap labor but in labor for humans.

Which will be a triple-win for Trump:
- brought back the manufacturing
- "fixed" his trade-deficit phantasy
- made his cronies richer