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 …
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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By the way, I have done many 60 hour weeks in the computer industry in the U.S. My record for one week was 119 hours when we had a deadline to get a new prototype $6m dollar system up and running.
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I will give you one I know off the top of my head. A $400m dollar robotic solar panel production system from Applied Materials, takes 9 people to operate. The labor differential between China and the USA is trivial.
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You are the expert, tell us what the labor content per phone is in China.
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50x the salary for an American just to toss it out. It is unlikely with automation and robotics that the per phone labor content in China is much higher. I accounted for a lot of variation there as well. The new corporate tax rate change should change a lot of mfg economics.
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