patrick.net

"Making iPhones in the U.S. means the cost will more than double," the source said.

Trump is an amazing business leader. I know he has a solid plan to 'right' this. (begins holding breath)

Thunderlips is Tovbot2 says

Foxconn considering manufacuring some Apple Products in USA

Wont create many jobs, though. Robots will be hired.

Strategist says

Wont create many jobs, though. Robots will be hired.

It's certainly better then no jobs.

Strategist says

Wont create many jobs, though. Robots will be hired.

Robots needs maintenance, repair, etc. Ooops, Zzyzzx already said it. 50 good paying jobs aren't as good as 500 okay paying jobs but better than 0 jobs.

It also means property taxes and payroll taxes will be collected.

Be very careful with "Will cost double" - unknown as to what part of the cost that is referring to. And highly automated plants spent a lot on Electricity. Electricity in the US costs on average substantially cheaper than in China.

They could build iPhones in Detroit. Lots of empty buildings to choose from.

Old Studebaker plant.

APOCALYPSEFUCK_is_ADORABLE says

TRUMPLIGULA! will grab Tim Cook by the dick and swing him around his head commanding him REPATRIATE! MY! PEOPLE'S! JOBS! OR! DIE! and then Cook will surrender to THE! GOD! KING!'s will because GREAT!ness.

Tim's boyfriend might not like that.

Thunderlips is Tovbot2 says

Robots needs maintenance, repair, etc. Ooops, Zzyzzx already said it. 50 good paying jobs aren't as good as 500 okay paying jobs but better than 0 jobs.

Those good paying jobs could be H1B jobs.

Sometimes I'm amazed by one word,
"considering".

https://theamericanrevenant.com/2016/11/18/silicon-valley-bends-the-knee-apple-to-relocate-iphone-assembly-to-america/

But first, let’s talk about Apple. Back in July, Apple asked Foxconn, its Taiwanese manufacturer, to estimate the costs of relocating iPhone assembly back to America, in the event that Donald Trump won.

This was not their first choice—Silicon Valley was Clinton’s top supporter (after Saudi Arabia). In fact, donations from the region averaged $1,276 (compared to tens of dollars elsewhere). Apple’s CEO, Tim Cook, even campaigned for Clinton personally, hosting a multi-million dollar fundraiser in her name. She still lost.

Now Apple’s dealing with the fallout. Foxconn estimates that relocating production to America would result in the assembly cost doubling. Sounds bad, right? Not really. Assembly costs are low. They would double from $12.50 to $25—pretty much nothing when you consider that a 32GB iPhone sells for $650. You will still be able to afford an iPhone, don’t let Apple scare you.

Furthermore, these are the immediate costs. The real costs will come down over time (as they always have), as technology improves, and production streamlines.

It remains to be seen whether Apple will start buying its component parts from American manufacturers (which contribute another $212.50 in manufacturing costs). Presently, it seems unlikely.

Tim Cook says this is because Apple simply cannot buy American, even if they wanted to, because “the US, over time, began to stop having many vocational kind of skills”—Americans forgot how to make things. He’s not wrong, America no longer makes things as basic as spoons and lightbulbs. It’s just ironic coming from him, since companies like Apple are the ones who got us into this mess, by offshoring their production in the first place.

Stuff Will Still Be Cheap

To wrap up: some people think that relocating production back to America will make goods prohibitively expensive.

They’re wrong, here’s why.

1. There are two sides to the equation: consumption and production. Although offshoring may result in hypothetically cheaper goods, it’s equally true that many people either:

(i) lost their jobs (either directly, like factory workers, or indirectly, like the barber who relied on the factory workers) or

(ii) found new, but worse jobs (the average wage cut for a displaced factory worker was 17.5%—waiting tables doesn’t pay as good as building cars, go figure).

At the end of the day, the benefits aren’t as big as you think (if they exist at all).

2. The nominal cost of goods is irrelevant—what matters is the cost of goods relative to wages (the real cost). Since 1973, nominal wages and the cost of goods (as per the Consumer Price Index) have increased at the same rate. This means that offshoring hasn’t yielded cheaper goods in real terms, because it undermines income to an equal degree.

3. This logic doesn’t include something called the Okun Gap, which is essentially the opportunity cost of mothballing capital equipment, and skilled labor when an industry is offshored. Just look at all the abandoned factories and warehouses strewn throughout Michigan. When this is accounted for, the hypothetical “gains” of offshoring are fairly minimal.

4. In the long run, goods are made cheaper by improving technology—any gains made by moving production to a nominally cheaper jurisdiction are a one-off. However, they also reduce the incentive to invest in better (more efficient) technology, because wages are lower. This actually undermines technological advancement, and therefore real economic growth.

It also has the perverse effect of resulting in highly efficient American factories being replaced with inefficient (but cheap) factories in China. This is bad for the world as a whole (because it allocates resources inefficiently), and it’s bad for us in the future (because we lose some of our highest-growth industries).

Apple’s falling in line. The rest will follow.

zzyzzx is sad says

It’s just ironic coming from him, since companies like Apple are the ones who got us into this mess, by offshoring their production in the first place.

"I was right again!"

zzyzzx is sad says

Apple’s falling in line. The rest will follow.

:) Yes, Apple bows to the government often. I'm sure they weren't asking the move to be evaluated to get their numbers in order to show the magnitude of absurdity this move would be. They weren't building ammo to fight a Trump push ... they were "falling in line" already. Their ask is surrender. White flag.

(another breath ... and holding)

The American Revenant
"You are currently on the only page which discloses that we are a conservative leaning news site! The American Revenant doesn’t mean to lean right so much, but the truth doesn’t mean to either. Transitively, The American Revenant leans towards the truth."

Well when people say they speak the truth, and trust me, I know that's all I need. Headlines look MAGAnificient! They have 31 followers on twitter!!!!!! OMG! Bigly!

Meanwhile, Jeff Sessions now likely AG ... and oh, he opposes the voting rights act. :)
I'm fast beginning to think that THAT will be were I take the fight.

Voter suppression and media attacking ... that isn't Hitler, that's Mussolini ...

Rew says

Meanwhile, Jeff Sessions now likely AG ... and oh, he opposes the voting rights act. :)

I'm fast beginning to think that THAT will be were I take the fight.

Voter suppression and media attacking ... that isn't Hitler, that's Mussolini ...

What does that have to do with manufacturing?

I guess after 40 years of stagnating or declining wages the American Worker is now "competitive" globally.
Woohoo! Jobs!