Froman: "We can make iPhones in this country, completely in this country, but they’ll probably cost $3,000 and they won’t be available to the single mother who uses it to FaceTime with her kids ... People rely on trade in ways that they have no realization of.”https://twitter.com/realDonaldTrump/status/1038453273286664193 …
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Do you have actual data on that or just 10 year old news stories...Or alternately, you support that kind of labor relations? I would pay more for my phone not to buy it from slave labor.
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I was in China two months ago. You? And that’s not slave labor, don’t be ridiculous.
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I would bet quite a lot on a per phone basis the labor cost is about 20 cents in China if not less, which taking the multiple here would add about $10 bucks to the cost of the phone. (http://www.china-briefing.com/news/2018/08/15/labor-cost-comparison-of-chinas-first-tier-cities.html …)
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How are you doing that math? They would save that cost in air freight around the holidays, would make no sense to continue shipping overseas if that were true
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One of the biggest advantages in China is not labor, but the government underwriting of the capital cost of manufacturing infrastructure.
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* 60 hour weeks, not days
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Labor costs make up an extremely small portion of the cost of producing an iPhone. They don't make iPhones in China because of cheap labor, they do so because a.) proximity to suppliers b.) greater supply of certain skillsets.
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I'm a senior executive in the automation industry and I can tell you with absolute certainty that Apple can manufacture iPhones in the US at a similar variable cost to China. They would have a significant capital expense to do so, but it could be done.
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Labor is a small portion of the cost of assembly. It’s more about the supply chain and getting parts as locally as possible. They could eventually produce iPhones in the US but it could take a few years for the supply chain to develop to support it.
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Labor cost is not an issue. The process can be almost entirely automated and accomplished with 5-10% of the workforce with modern automation, which equates the labor costs. Capital is another story, but Apple has that.
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