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With a lot of discussion around our reliance on manufacturing in China, Apple is [reportedly] stepping up to make a move to shift a large chunk of their manufacturing outside of the east asian country.
This is a big win for those who were concerned of manufacturing being focused in one country that could be a single point of failure. A distributed manufacturing and supply chain will be more resilient against pandemics, natural disasters, and politics.
"Several meetings between Apple's senior executives and top ranking government officials over the last few months have paved the way for the iPhone maker examining the possibility of shifting nearly a fifth of its production capacity from China..."
Good news for South Korea, Japan, Vietnam, Thailand, India, Philippines, Indonesia, Malaysia, and other nearby Asian nations. American consumers will no doubt pay 200% of the costs to shuffle the deck.
This is also good news for the US. A more resilient supply chain is much needed.
Unless a significant portion of the work is done in the USA, it won't benefit the average American. It will actually raise the cost of purchasing Apple products, and they are already prohibitively expensive for many. This won't benefit Apple and it's shareholders when fewer Americans can afford to purchase their already obscenely expensive items.
Most American consumers don't consider how resilient a company's supply chain is when determining what kind of computer or phone to purchase. It's no where on their radar when making these kinds of decisions.
Unless a significant portion of the work is done in the USA, it won't benefit the average American. It will actually raise the cost of purchasing Apple products, and they are already prohibitively expensive for many. This won't benefit Apple and it's shareholders when fewer Americans can afford to purchase their already obscenely expensive items.
The demand for Apple products are high and in the mobile space will continue to stay high. Their profit margins are also very high. There's plenty of room for Apple to play around to maintain a strong business here.
The price may be obscenely expensive to your and your personal economic outlook, but the majority of Americans have an Apple product, so it's not obscenely expensive to them. The worst thing that could happen to Apple is not getting Americans the products they want.
The demand for Apple products are high and in the mobile space will continue to stay high. Their profit margins are also very high. There's plenty of room for Apple to play around to maintain a strong business here.
The price may be obscenely expensive to your and your personal economic outlook, but the majority of Americans have an Apple product, so it's not obscenely expensive to them. The worst thing that could happen to Apple is not getting Americans the products they want.
We shall see how Americans feel about paying significantly more for Apple products with 25% unemployment, a pandemic on the the loose, maxed out credit and debt, stagnant or falling wages, etc etc. A significant portion of Americans can no longer afford things they considered a necessity, like their home, health insurance, etc. These people are not going to be waiting in line to buy a +$1,000 cell phone any time soon. You and Tim Cook are delusional if you think otherwise. A lot of people are worried about putting food on the table with all the craziness and confusion going on.
We shall see how Americans feel about paying significantly more for Apple products with 25% unemployment, a pandemic on the the loose, maxed out credit and debt, stagnant or falling wages, etc etc.
You're only able to focus on the short-term. This is a long-term play for Apple (and other manufacturing companies that follow suit).
There's no evidence that Americans will need to pay significantly more. Apple has a 60%-75% profit margin on their hardware. They can reduce that to under 20% and still be fine.
You're only able to focus on the short-term. This is a long-term play for Apple (and other manufacturing companies that follow suit).
There's no evidence that Americans will need to pay significantly more. Apple has a 60%-75% profit margin on their hardware. They can reduce that to under 20% and still be fine.
They should have been shuffling the deck when the economy was good and they had more money than they knew what to do with. Now is not such a favorable time to try this, especially with a pandemic going on. Hope it works out for them, but it won't be easy for them to come out on the winning end in this adventure.
I know deep down inside, they would rather stay in China where their profitability is all but guaranteed. Apple fan bois don't care one bit about where their electronics are made anyhow. Lefties brag that Trump supporters are poor, so it is very unlikely Apple's decision to shift production will have any impact whatsoever on their purchasing habits either.
If Apple was going to be bringing more jobs back to America, it would be great. But that will never happen. They tried making computers in America, but largely failed. They are not going to remain profitable by banging their heads against a brick wall. They will just find cheap labor elsewhere and continue operating the way they have always operated, because it is all they know, and profits are essential to their survival.
The demand for Apple products are high and in the mobile space will continue to stay high. Their profit margins are also very high. There's plenty of room for Apple to play around to maintain a strong business here.
The price may be obscenely expensive to your and your personal economic outlook, but the majority of Americans have an Apple product, so it's not obscenely expensive to them. The worst thing that could happen to Apple is not getting Americans the products they want.
The phone market has mature. There is no virtually no different between the last 2 to 3 generation iPhone on performance. Yes, each year you get a better camera, but that's about it. For average customer, there is no longer needed to upgrade the phone every year.
What Apple did right is they price the phone correctly. Unlike Samsung, which they priced themselves out of average customers.
It's apparent that China can't be trusted anymore than North Korea. We need a 5 year timetable to stop doing business with China
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