HRM Donald Trump plans to force Apple to manufacture in the US?
Posted by freedomforall 9 years, 8 months ago to Politics
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"Charles Duhigg and Keith Bradsher of the New York Times have written an excellent article about why Apple makes iPhones and iPads in China instead of the United States.
One of the key points is this: Chinese factories are far more nimble than American factories.
The story Duhigg and Bradsher used to illustrate this will only add to the iPhone lore.
Just over a month before the first iPhone was to be released in 2007, the authors report, a frustrated Steve Jobs summoned his senior team.
Steve had been using a prototype iPhone for a few weeks, carrying it around in his pocket. When his lieutenants were assembled, he pulled the prototype out of his pocket and pointed angrily to dozens of scratches on its plastic screen.
People would carry their phones in their pockets, Steve said. They would also carry other things in their pockets--like keys. And those things would scratch the screen.
And then, with Apple just about to ramp up iPhone production, Steve demanded that the iPhone's screen be replaced with unscratchable glass.
“I want a glass screen," Steve is quoted as saying. "And I want it perfect in six weeks.”
The glass itself would come from Corning, an American company. But the only way for Apple to meet Steve's deadline would be to find an empty glass-cutting factory, a huge amount of glass to experiment on, and a team of mid-level engineers to figure out how to cut the glass into millions of screens.
An executive at the meeting knew that the only place Apple might be able to find these things would be in China. So he flew to Shenzhen, where a bid for the work quickly arrived from a Chinese company.
Before they even won Apple's business, the Chinese company started building a new factory building in which to cut the glass. (The Chinese government was providing subsidies, and the company took advantage of them--"just in case.") The company provided Apple with a team of cheap engineers, as well as spare glass for Apple to experiment with, the latter for free. The company's engineers were housed in dormitories, so they were available to Apple 24 hours a day.
Apple hired the company to cut the hardened glass for the screens, and after a month of experimentation, the engineers figured out how to do it. They quickly sent the first shipment of screens to Foxconn's assembly plant in Shenzhen, where they arrived in the middle of the night. Foxconn's managers woke up thousands of workers and immediately began assembling iPhones.
Three months later, Apple had sold 1 million iPhones. Four years later, Apple has sold ~200 million of them.
As the Apple executives who spoke to Duhigg and Bradsher for their article make clear, there is no way American manufacturing companies could have met this timetable.
The end-to-end process of building the iPhones, Duhigg and Bradsher report, required 8,700 mid-level engineers. In the United States, Apple estimated, it would have taken 9 months to hire this many engineers. In China, it took 15 days."
http://www.businessinsider.com/steve-...
Thanks for posting,Harmon.
Have you had any similar frustrating experiences in your ventures that you can share?
If his import fees only apply to products American companies produce overseas, the companies will just stop being American. Problem solved.
More likely he'll try to do things the way he's used to doing them. Congress will pass a private bill offering Apple tax breaks to stay. And they'll do it, and we'll have to get our cheap phones from Samsung or Nokia instead. And Apple will need lobbyists to keep its sweetheart deal, and lawyers to handle all the red tape here. And would-be new competitors will still be locked out.
This is why Chinese companies are "more nimble."
Back in the mid '70s I sent a note to my congress critter that a single trade law that simply reflects another country's own rules back on them is all we needed. That is, whatever restrictions or tarrifs that country placed on any US goods would be placed on all theirs.
This is because a country that takes in another country's money is sooner or later going to send it back. If (for instance) Japanese auto makers get their government to put a tariff on imported cars, this helps Japan's car makers but it's at the expense of all of Japan's other industries and their workers.
I haven't read Friedman's take on tariffs so I can't comment on that. My proposal was supposed to be an incentive to get rid of tariffs by making them useless for other countries to impose them against us and, as a reflective policy, we wouldn't have any tariffs on their goods. Using your Japanese car example, if Japan placed a tariff as well as "inspection choke points" preventing importation of American cars, then the US would place the same tariff and "inspection choke points" on ALL goods coming to America from Japan. I'm sure ALL the Japanese manufacturers that want to ship to the US would scream loud enough to end their tariff and other shenanigans regarding American cars. Apply the same ruling towards China's treatment of American products shipped to China. It may be too late now, but I like to wonder how long it would take the playing field to naturally achieve level.
ium on Brains", just before Directive 10-289 is
issued, Dr. Floyd Ferris says something must be
done about the big industrialists' vanishing. He
even mentions that he proposed introducing the
death penalty for those people, but Mouch re-
fused. What is Trump trying to do here? Who
does he imagine he is?
Trump, the Perfect, of course. Why would he ever imagine anything else?
Harmon's example (above) is an excellent example of this, and why China is beating the tar out of us in Manufacturing... Not only does our Government have it's pork-grabbing hands out at every (and I mean EVERY) juncture, it has busness so tightly regulated, threatened, fined and taxed, that even IF we could hire someone for a fair wage, and have them, like the Chinese workers above, on call to do what needs to be done RIGHT NOW, they would prohibit it as the "nanny for the worker's protective and collective bargaining rights". We have gone from the nation that can do to the nation that must get permission from our masters in Government... and grovel at their feet for permission to barely scrape our businesses by.
And if this reminds you of how things ran in the USSR - or China - and you're surprised about that, then you haven't been paying attention for some few decades.
IF - this is the big if - Trump can get Government's big, fat, obtrusive nose out of Businesses behind, and let them GET TO WORK (like we did decades ago) without forcing on them all kinds of moralistic and socialistic programs, rules, laws, and regs they HAVE to follow, then he will succeed, and yes, to quote him, "Make America Great Again".
He is "Mr. Rent-Seeker."
China doesn't have labor unions - just communist unions.
The other thing they don't point out, however, is that the quality of items manufactured in China is crap. They have terrible QA rates. My dad does manufacturing outsourcing in a couple of the major cities outside Hong Kong and that's his constant fight: manufacturing to acceptable tolerances.
So yes, China is cheap. Problem is you get what you pay for.
The past 15 years are a good sample case.
Donnie, perfect for Czar.
Unacceptable for America.
"--probably just a spokesman fro trump enterprises--" ??
I think you hit a nail on the head.
I don't doubt Trump CAN hire good people, but he will direct them to do what increases Trump's power, just as politicians have done for generations. Trump is no different in that respect.
For Galt's Sake when will you GOP voters realize you have been conned for generations and trump is just another statist con-man? Everything he has done in the past contradicts your conclusion.
The GOP is truly the party of FAITH and faith alone.
Gary Johnson, Libertarian
http://www.telegraph.co.uk/news/world...
Do you think the same holds true for Ted Cruz?
I'm thinking of candidates with a chance of winning here.
I haven't researched Cruz detailed programs and promises extensively. His religious side neither impresses nor causes me to reject him.
I am convinced that anyone who represents the GOP will be chosen by the party insiders and will have a compromised integrity.
If we don't lead, no one will. The only peaceful action open to us is to reject the statist party(DemGOP) and vote for a third party candidate who has not been compromised.
Otherwise, buy a reloading press and lots of components because dictatorship and martial law will be inevitable.
Just in case.
Can you imagine Apple HQ in Mumbai?
I don't expect any of the candidates to think anything near Objectivism anymore...
But with his Ego, he ain't gonna search for any other opinions.
And that's a real shame!
Highness is for lower peers of the realm.
Clearly Donnie feels everyone else is beneath him, therefore HRM.
(grin)
I'll just settle for "Sir" Radio Randy...
Maybe price/performance was the killer OF the product line, not the Killer App.
Heck, what would the list price have been WITHOUT robotic assembly?
And remember how Japan owned the VHS market? They bought a bunch of US-made VHS players, then reverse-engineered the ENTIRE assembly process, initially using humans for ALL assembly steps... Then, one by one, they studied the process steps and automated Each and Every Step... one at a time... until it was completely automated.... and then their price/performance points nuked US assembly.
I do get your point about more fedgov costs being imposed and wrecking the competitive capability. No doubt this will be done unless the people throw off the chains of "security" and embrace the riches of liberty.
To a large extent this is a mismanaged outcome of Adam Smithe's "Invisible Hand". Through the force of equilibrium we should be living more like the Chinese and they more like the Americans. Both our governments create market distortions that prevent free market forces from working. Theoretically, the best way to help the US economy and middle class would be to raise the standard of living for the Chinese and 3rd world. The the pressures of equilibrium would be satisfied. How can there be this force? Just as capital seeks ROI, goods and services exchange in an unhampered way. People with corn trade it for ammunition. People with too much ammo trade for moonshine whiskey. The guy making whiskey now has too much ammo, but he nneds corn to make whiskey. Unless a government steps in a creates a market distortion it all levels out like water seeking it's own level. IMHO the reason for all the trade problems is governments distorting the markets for the self centered interests. I just saying...
Who deserve what they will get.I'm not buying my Jeep in the USA. I want diesel. US cannot provide that option. went back south of the border and got the hole thing for less than half USA price. I don't give a fig for licensing it in the USA. It's cheaper to rent one for the few days bother going back.
Objectively speaking
We have worldwide labor competition now, and to keep jobs here, our people have to be competitive, period.
So I just spent the weekend doing the end of the year paperwork (under threat of fines and probably jail time) for our employees, so the government can tax them (and our company). A month ago, I spend time successfully defending a labor board issue brought up by of all people- an illegal alien employee. A few months ago, I had to defend our company against the unemployment agency who wanted to charge our UI account for an employee who quit last year and then got laid off by THAT employer after a couple of months and is sitting home collecting $326 a week for half a year.
No wonder I want to outsource from China. None of these problems!!
Yet another politician talking as if jobs were some scarce commodity in short supply. Jobs are just people helping one another for money. Trump has it completely wrong. There is no limit to the ways creative motivated people can find to help one another in mutually agreed trades.
It usually is though. A large amount of the economy is underground. People who have something to sell / buy come together with or without the blessing of the gov't.
Lord knows how long it would take to build a new plant in the U.S. with all the regulatory delay.
Maybe it's Trump's way of getting Apple to fund Hillary's campaign.