patrick.net

RWSGFY says

Ives does not believe it would be possible for Apple (AAPL) to build a $1,000 iPhone in the U.S., with a domestically manufactured iPhone expected to sell for $3500.

Then Apple will pay the tariff and make less per phone, as that $1,000 is what the market will bear. Very few will pay $3500 for an iPhone.

For under $2000 I bought a used Dell Xeon 12 core workstation, put in 256 GB ECC RAM, set up a 4X1GB NVME RAID 0 main drive, along with a 10 TB backup.

The used hulk of the workstation itself cost $500.

WFT is with the insane price of phones?

GuruFocus "fair value" prices for

Apple: $193.52

Amazon: $167.90

Google (class A shares): $172.28

They all are undervalued or fairly valued now after at least a +27% drop in stock price.

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Apple markets itself as an upscale brand. It still has a cult following just like upper middle class in the USA will buy BMW and Mercedes.

About 55% of Apple sales come from the iPhone. Apple needs to diversify just like Google and Amazon is diversifying.

I can get by with a $150 Chromebook, a $45 Motorola Moto G cell phone, and a $40 ONN Android tablet.

But I noticed Apple is driving down the price of its very capable Mini Mac and its Mini IPad is a good value also.

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stereotomy says

For under $2000 I bought a used Dell Xeon 12 core workstation, put in 256 GB ECC RAM, set up a 4X1GB NVME RAID 0 main drive, along with a 10 TB backup.

The used hulk of the workstation itself cost $500.

WFT is with the insane price of phones?

I doubt you would be OK with hauling around a phone the size of Dell workstation.

HeadSet says

Then Apple will pay the tariff and make less per phone

Sure. And many companies will do the same. Which means less profits. Which means less capital to invest in the re-shoring. Looks like we don't really want that manufacturing coming back after all....

Eric Holder says

HeadSet says

Then Apple will pay the tariff and make less per phone

Sure. And many companies will do the same. Which means less profits. Which means less capital to invest in the re-shoring. Looks like we don't really want that manufacturing coming back after all....

they are already starting that 500B investment. all big boys knew tariffs were coming.

Eric Holder says

stereotomy says

For under $2000 I bought a used Dell Xeon 12 core workstation, put in 256 GB ECC RAM, set up a 4X1GB NVME RAID 0 main drive, along with a 10 TB backup.

The used hulk of the workstation itself cost $500.

WFT is with the insane price of phones?

I doubt you would be OK with hauling around a phone the size of Dell workstation.

I doubt I'd enjoy code development on a computer the size of my smartphone with no physical keyboard to boot.

Eric Holder says

And many companies will do the same. Which means less profits.

Which probably means lower stock market returns going forward, but probably not much. If you were planning on retiring on supposedly 10% average annual returns on growth stocks you are stupid anyway and should have bought divided paying stocks (or at least have enough dividend paying stocks in your portfolio and the rest growth stocks).

stereotomy says

Eric Holder says

stereotomy says

For under $2000 I bought a used Dell Xeon 12 core workstation, put in 256 GB ECC RAM, set up a 4X1GB NVME RAID 0 main drive, along with a 10 TB backup.

The used hulk of the workstation itself cost $500.

WFT is with the insane price of phones?

I doubt you would be OK with hauling around a phone the size of Dell workstation.

I doubt I'd enjoy code development on a computer the size of my smartphone with no physical keyboard to boot.

What the point comparing apples with oranges then? Your workstation doesn't require minituarization, has no screen, no cameras, no antennas, no battery, doesn't contain any premium materials like Gorilla glass and stainless steel or titanium and it's built on older, more commoditized tech. And it serves different purpose, caters to a different market, etc., etc., etc.

Eric Holder says

HeadSet says

Then Apple will pay the tariff and make less per phone

Sure. And many companies will do the same. Which means less profits. Which means less capital to invest in the re-shoring. Looks like we don't really want that manufacturing coming back after all....

So, companies will not reshore unless they are allowed to keep production offshore? Catch 22, eh?

HeadSet says

, companies will not reshore unless they are allowed to keep production offshore? Catch 22, eh?

Yeah. The sheer retardation posted on this subject (by two PatNatters in particular) is truly astounding to witness.

I think they are trolling as nobody can be this stupid.

I wonder if Apple would just make 1/2 the profit it currently does if it manufactured in the USA.
I don't know what the profit margin is, but it must be high.

clambo says

I wonder if Apple would just make 1/2 the profit it currently does if it manufactured in the USA.
I don't know what the profit margin is, but it must be high.

They could make in the USA and make a good profit even on the low end like the Mini Mac and Mini iPad, which I consider these 2 as the affordable Apple products for the middle working class.

Apple just has to cut fat and waste within its company like getting rid of the blue hairs and dead wood.

I wonder if it could make at least a 10% profit making (or at least assembling) the mini Mac in the USA.

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Commerce Secretary Howard Lutnick says he hopes Trump’s tariffs will eliminate China’s ‘army of millions and millions of human beings screwing in little, little screws to make iPhones’ so they can be built in America by robots

https://fortune.com/2025/04/07/howard-lutnick-iphones-america-apple-tariffs/

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The labor cost of assembling an I-phone is about $25-30.

The cost at American wages is what $150-200 ????? - And that's before extra automation.

I think Apple has a little wiggle room as far as margins, R&D etc.

Misc says

The labor cost of assembling an I-phone is about $25-30.

The cost at American wages is what $150-200 ????? - And that's before extra automation.

I think Apple has a little wiggle room as far as margins, R&D etc.

how much of an equal or similar comparison is there with labor costs if the Chinese workers get free housing, food and healthcare ?

and are those costs subsidized by the Chicom government ?

but Apple would still make a considerable profit even if it shifted production to the USA

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HeadSet says

Eric Holder says

HeadSet says

Then Apple will pay the tariff and make less per phone

Sure. And many companies will do the same. Which means less profits. Which means less capital to invest in the re-shoring. Looks like we don't really want that manufacturing coming back after all....

So, companies will not reshore unless they are allowed to keep production offshore? Catch 22, eh?

No catch: keep off-shore production and current level of revenues while their new factories are being built here. Smooth transition vs mad scramble.

they moved a lot to India from China, foxconn has factories in India. India gonna replace all US service jobs and manufacturing long term unless we fix this idiot path.

FortwayeAsFuckJoeBiden says

they moved a lot to India from China, foxconn has factories in India. India gonna replace all US service jobs and manufacturing long term unless we fix this idiot path.

China obstructs India’s manufacturing rise with Foxconn bans

Beijing is playing hard ball, while Indonesia takes Apple to task and the US goes after Tencent

https://finance.yahoo.com/news/apple-supplier-foxconns-efforts-iphones-193041410.html

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RWSGFY says

HeadSet says

Eric Holder says

HeadSet says

Then Apple will pay the tariff and make less per phone

Sure. And many companies will do the same. Which means less profits. Which means less capital to invest in the re-shoring. Looks like we don't really want that manufacturing coming back after all....

So, companies will not reshore unless they are allowed to keep production offshore? Catch 22, eh?

No catch: keep off-shore production and current level of revenues while their new factories are being built here. Smooth transition vs mad scramble.

Correct, Apple do not have to make 80% profit on phone, garment companies in Cambodia also. With less profit abroad, room for competitors is just opening, and who going be the winners - we, the consumers.

With 104% wig on everything there will be no 80% profit. And revenues will be in the toilet too. So they will have to build new factories while taking in significantly less $$. Great recipy! 🤡

Apple. Bye, bye China profit. Now all start to make sense. Trump told you so.

REpro says

Trump told you so.

I'm surprised at the number of companies that had months and did absolutely nothing to move out of China or into the US.

zzyzzx says

REpro says

Trump told you so.

I'm surprised at the number of companies that had months and did absolutely nothing to move out of China or into the US.

Yup. Somehow they thought Harris would win??? Or Biden? What CEO woke up thinking that was going to happen? Kind of scary if you think about it. We all know Harris even got more illegal votes as well and still didn't win. I am not friends with a single guy that voted for her. All my friends knew Biden's brain was fried and we don't talk much politics.

Then you got the lame duck factor. Trump can do what he wants within reason as he doesn't need to get reelected and just needs the midterms. When he talks tariff he means it at this point.

zzyzzx says

REpro says

Trump told you so.

I'm surprised at the number of companies that had months and did absolutely nothing to move out of China or into the US.

It takes YEARS, not months. And he told the tariffs will be reciprocal, not based on some obscure formula with wrong numbers plugged in.

RWSGFY says

zzyzzx says

REpro says

Trump told you so.

I'm surprised at the number of companies that had months and did absolutely nothing to move out of China or into the US.

It takes YEARS, not months. And he told the tariffs will be reciprocal, not based on some obscure formula with wrong numbers plugged in.

Indeed, in CA takes years or decades (Apple headquarter) but they can ask Musk how to build GIGA factory in no time.

RWSGFY says

With 104% wig on everything there will be no 80% profit. And revenues will be in the toilet too. So they will have to build new factories while taking in significantly less $$. Great recipy! 🤡

but they won’t bring factories here unless it hurts not to.

and i’ll say that i don’t think they’ll bring shit here. i don’t see it. tariffs are not permanent, no one gives a damn about them long term since we pausing them on a whim.

FortwayeAsFuckJoeBiden says

but they won’t bring factories here unless it hurts not to.

Or like what Biden did with the Chips Act, Green New Deal, etc

Reagan invested in industry as well as R&D (which benefited a lot of Silicon Valley) by significantly increasing Pentagon and NASA spending

I say take a page out of Reagan playbook to increase the manufacturing base, even have Defense Health Agency set up facilities (with major universities running them) to mass produce vital Rx like antibiotics and cancer drugs as well as mass produce medical equipment from CPAPs to intensive care unit (ICU) systems

AD says

FortwayeAsFuckJoeBiden says

but they won’t bring factories here unless it hurts not to.

Or like what Biden did with the Chips Act, Green New Deal, etc

Reagan invested in industry as well as R&D (which benefited a lot of Silicon Valley) by significantly increasing Pentagon and NASA spending

I say take a page out of Reagan playbook to increase the manufacturing base, even have Defense Health Agency set up facilities (with major universities running them) to mass produce vital Rx like antibiotics and cancer drugs as well as mass produce medical equipment from CPAPs to intensive care unit (ICU) systems

not great if they just hire indians to replace us, while our taxes built them.

FortwayeAsFuckJoeBiden says

not great if they just hire indians to replace us, while our taxes built them.

You mean like what happens in academia as far as the extreme birds-of-same-feather hiring preferences ? Yes the Asian Indians will take care of their own (caste).

But I am talking predominantly manufacturing like assembly line to build CPAPs, and not USA academic R&D where an Indian professor will just hire and sponsor Indians for PhD candidate roles.