Trump and iphones..

[Independent voter]

So apparently Trump wants to have iphones made IN the US. I guess as long as it's not HIM paying for his phone eh...he just loves screwing over the American people. T.T
He screws over his own supporters and they STILL love the guy. I don't get this logic.

Apple assembler Foxconn has been studying the possibility of moving iPhone production to the United States, reports Nikkei Asian Review.

“Apple asked both Foxconn and Pegatron, the two iPhone assemblers, in June to look into making iPhones in the U.S.,” the site claims. “Foxconn complied, while Pegatron declined to formulate such a plan due to cost concerns.”

https://www.cultofmac.com/454452/app...g-iphones-usa/

[BananaHandsB]

Apple stock taking a beating.

[Daveon]

Components plus labor to make an iPhone is about $90 USD per phone. Nobody is buying this iteration of iPhone already as they've cut production rates twice. Apple sells them at about 90% profit. Between the metal tariffs and then bringing the production to the US, the price per phone will probably double because Apple is an unethical beast.

Actually most sites quote a $370 BOM cost for the iPhone X (that's without labor), which originated from a teardown study done a year ago. Some of the component prices changed, and they replaced some with higher quality ones, but the component cost is still roughly in that neighborhood.

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tldr; tariffs on non-existing job markets/products =/= new jobs. Tariffs work for currently existing markets and products.

I mean that's fairly basic macro-economics, right?

[Renedric]

Wait, is this for real?!

Hah, Apple can't afford that shit..

LOL. I'm sure apple will find a way to make a profit. I mean, the iphone costs about $370 to manufacture but idiots don't have a problem fessing up $1k for it.

[Daveon]

Considering they are marked up like 1000% from what their parts are actually worth, who really cares?

If we use the $370 number, they're marked up 270% from the cost of the components, but that's not counting labor, distribution costs, marketing, engineering costs, etc.

All together, it's likely they spend around $500 to produce and sell a phone that retails for $1000. So they're probably making a 50% margin (or 100% profit, if you prefer to look at it that way) on each phone.

When I worked in a grocery store many years ago, I once got to see a wholesale list (how much the store paid for the items), and it was similar... a typical item that the store sold for $1.99, the store was buying for $.99/1.00. Not sure if groceries are still that way (I imagine margins are smaller now), and that didn't include the store labor in the costs, just the cost of buying the items.

[Unholyground]

If we use the $370 number, they're marked up 270% from the cost of the components, but that's not counting labor, distribution costs, marketing, engineering costs, etc.

All together, it's likely they spend around $500 to produce and sell a phone that retails for $1000. So they're probably making a 50% margin (or 100% profit, if you prefer to look at it that way) on each phone.

When I worked in a grocery store many years ago, I once got to see a wholesale list (how much the store paid for the items), and it was similar... a typical item that the store sold for $1.99, the store was buying for $.99/1.00. Not sure if groceries are still that way (I imagine margins are smaller now), and that didn't include the store labor in the costs, just the cost of buying the items.

I got to see the material cost of many electronics at best buy years ago, and almost all technology was vastly cheaper than what they sell for, like most printers for example at the time cost about 4$ to make or less and they would sell them for 80$ plus. The 1000% was an exaggeration but they do make an insane amount more than people would think, it of course also depends on other factors too so some make a lot more based on the type of product some don't make as much.

When you buy apple products you are paying for a name with inferior hardware in almost all cases.

[Daveon]

I got to see the material cost of many electronics at best buy years ago, and almost all technology was vastly cheaper than what they sell for, like most printers for example at the time cost about 4$ to make or less and they would sell them for 80$ plus. The 1000% was an exaggeration but they do make an insane amount more than people would think, it of course also depends on other factors too so some make a lot more based on the type of product some don't make as much.

When you buy apple products you are paying for a name with inferior hardware in almost all cases.

Oh I agree... most companies would kill to make 50% margins. A car that is currently $30,000 in the US would cost more like $50,000 if auto makers were making 50% margins on vehicles. (A $60,000 fully decked SUV would be around $100k)

And you are right about the name thing... Apple's marketing is clever and insidious. They keep their customers very well, that's how they're able to keep their margins so high. Most companies with good brand loyalty are able to do the same.

[Shaderas]

Apple isn't another countries business, they're an American company.

While I think it would be cool if Apple made phones in the US, any attempt to force them to do so would be undemocratic and anti-capitalist.

The U.S. would have to incentivize them to do so somehow, which I'm not 100% sure I'd prefer (would depend on what incentives were offered). And the bottom line comes down to, Apple is beholden to it's shareholders, so they do what is best for their profit/bottom line.

[Afrospinach]

If there is no problem, why are there nets?

I thought I explained?

Because it is a workplace health and safety issue as they board at the factory.

I mean that's fairly basic macro-economics, right?

I am not sure it is wise to apply "basic economics" to a phenomenal company like Apple, also with their spectacular lock in mechanisms that people seem to tolerate to no end.

[rhackin]

So apparently Trump wants to have iphones made IN the US. I guess as long as it's not HIM paying for his phone eh...he just loves screwing over the American people. T.T
He screws over his own supporters and they STILL love the guy. I don't get this logic.

Libs are such hypocrites. So you want what?....iPhones to continue to be produced in China so that Apple can evade US tax, promote poor working conditions with poor wages for employees, and to support China's economy? How is calling for an American company to make products in the US objectionable to libs? China is effectively a 1-party military dictatorship and you want to.....support that? You people literally make zero sense with your endless fake outrage.

Trump could personally cure cancer, AIDS, and world hunger in one day and you poor confused libs would be outraged.

[Machismo]

Libs are such hypocrites. So you want what?....iPhones to continue to be produced in China so that Apple can evade US tax, promote poor working conditions with poor wages for employees, and to support China's economy? How is calling for an American company to make products in the US objectionable to libs? China is effectively a 1-party military dictatorship and you want to.....support that? You people literally make zero sense with your endless fake outrage.

Trump could personally cure cancer, AIDS, and world hunger in one day and you poor confused libs would be outraged.

Why are Republicans and Trumspters so hateful of capitalism these days?

[Zoldor]

I mean that's fairly basic macro-economics, right?

One would assume so, but it seems the majority of people and the people in power don't seem to understand the concept. But who cares, we keep using Tariffs to confuse simple people into thinking it is good for them and their prospect of getting that factory job they so desire.

[The Stormbringer]

If we use the $370 number, they're marked up 270% from the cost of the components, but that's not counting labor, distribution costs, marketing, engineering costs, etc.

All together, it's likely they spend around $500 to produce and sell a phone that retails for $1000. So they're probably making a 50% margin (or 100% profit, if you prefer to look at it that way) on each phone.

When I worked in a grocery store many years ago, I once got to see a wholesale list (how much the store paid for the items), and it was similar... a typical item that the store sold for $1.99, the store was buying for $.99/1.00. Not sure if groceries are still that way (I imagine margins are smaller now), and that didn't include the store labor in the costs, just the cost of buying the items.

I don't think $370 is cost of parts, I think $370 is cost of parts, labor, and shipping. People have quoted $90 price-points for the parts.

[Shaderas]

Libs are such hypocrites. So you want what?....iPhones to continue to be produced in China so that Apple can evade US tax, promote poor working conditions with poor wages for employees, and to support China's economy? How is calling for an American company to make products in the US objectionable to libs? China is effectively a 1-party military dictatorship and you want to.....support that? You people literally make zero sense with your endless fake outrage.

While it would be cool to have iphones made in the USA, any attempt to force Apple to do so would be anti-capitalist, and undemocratic.

As I stated above, the US would have to provide some incentive for them to move factories to the US. Bottom line is Apple is beholden to it's shareholders and doing what is best for their profit/bottom line.

[Ravenblade]

I got to see the material cost of many electronics at best buy years ago, and almost all technology was vastly cheaper than what they sell for, like most printers for example at the time cost about 4$ to make or less and they would sell them for 80$ plus. The 1000% was an exaggeration but they do make an insane amount more than people would think, it of course also depends on other factors too so some make a lot more based on the type of product some don't make as much.

When you buy apple products you are paying for a name with inferior hardware in almost all cases.

Moving production to home requires a change of thinking such as lowering expectations of shareholders and investors as profits and growth is shrinking. Being content with what you have isn't really a trademark of capitalism. It also requires people willing to pay the actual price that also may reflect the wage costs of your neighbour i.e. some form of solidarity. It may also require some more worker rights in general. It may also require some more sustainability in general in the long term. In general it also means your products become more expensive on the world market and that may shrink your profits even more making you a lot more dependent on domestic demand.

It just gets me every time however when proponents of free trade, small state, removal of regulations demand measures that borderline mercantilism or communism, like wanting to have your cake and eat it too but only if your ideals are biting back with force like when the hunter becomes the hunted.

[Melius]

i guess apple couldnt use child labour anymore if moved to us. such a shame.

[rhackin]

Why are Republicans and Trumspters so hateful of capitalism these days?

Right back at ya...if Trump's Apple strategy is anti-Capitalism, why are libs shitting themselves over it and not embracing it?

[arandomuser]

donald trump on the campaign while in warren michigan" the factories are never going to close while im president" 2018 Gm announces they are closing, and list tariffs as a reason production costs are too high... At some point trump supporters have to learn everything he says is a lie.

[NoRest4Wicked]

Why does he care? All those pretty MAGA hats were made in China. How many of his daughters product lines are made in China? Psh, hypocrite.

[Zoldor]

Libs are such hypocrites. So you want what?....iPhones to continue to be produced in China so that Apple can evade US tax, promote poor working conditions with poor wages for employees, and to support China's economy? How is calling for an American company to make products in the US objectionable to libs? China is effectively a 1-party military dictatorship and you want to.....support that? You people literally make zero sense with your endless fake outrage.

Trump could personally cure cancer, AIDS, and world hunger in one day and you poor confused libs would be outraged.

I'd just like him to do something that works even on a small scale. As it is, tariffs don't create jobs, they don't encourage new jobs to be created, and they aren't going to convince a company to start making products in the US. So I'd like him and you to get a small grasp on economics or the understanding of a tariff before we get to the ethical issues of capitalism.

Or you can just keep thinking that a 10% or 25% increase in the cost of production will be enough to justify the billions if not more it would cost to start production of those goods in the US and then still cost more than just paying the tariff and passing the cost along to the customer.

But no please tell me more how these wonderful tariff's are creating jobs and getting people to bring back factories to the US when there are TONS of other places to get cheaper workers. Hate to break it to you, but libs and republicans both are actually fine with the ethical cost of goods. Just in our country I don't want people working like slaves, because they don't have to, there are better options. You don't go from pre-industrial revolution to the current modern society without taking all the steps to get there and that means exploitation of the labor force. Open a history book and and econ book then come back to the table.