Wahyu Setiawan nah bro that’s called planned obsolescence so big corps can sell you more sh*t. I wasn’t aware of it either until I watched the strange parts channel. China has a very skilled electronic manufacturing sector
@@aryan991000 that is after automation of the supply chain first... all the components, but still have to deal with abundance and cost of raw materials.... in a nutshell, any company that wants to succeed building in U.S. must be vertically integrated. they need to invest and own all parts of the supply chain, from material procurement to fabrication to final assembly, and need to be expert in everything they touch. huge scale and lots of investment.... downfall is if their products tank or have a down year, struggle ensures. Another option is for government to subsidize creation of automated vertical supply chain as form conglomerate subcontract manufacturers here in the states. in turn, they can provide services to multiple u.s. companies and diversifies the risk when a company or product tanks. risk will be trade secret shared when it's not tightly controlled in-house.
Apple has more than enough money to pay American workers their due and still profit excessively without raising iPhone prices. In fact the latest iPhones that were announced actually decreased in price due to the trade war.
Jonathan Moosey no they decreased in price due to cost cutting in the screen of the cheaper Iphone 11 base phone. They are using a cheaper LCD instead of the OLED screen of the Pro version. The Iphone 11 pro is still like $1400 lol
I worked for Apple (and other companies) in the early 2000’s in Elk Grove, California and made PowerMac’s, this was after the colored CRT iMac’s use to be made there until the iMac LCD that was made in China. It’s a shame those plants were shut down, after they started dropping people I went to work at AppleCare in the next building. I enjoyed making PowerMac’s more, really fun work and the days went by fast ‘cause I was busy, I was a failure analysis engineer on the production line, the products I helped make were the G4 Cube (I still have mine in the box) the Quicksilver PowerMac G4, the PowerMac G5, the Xserve... and I think that’s it. I was disabled in a car accident coming home from work at Apple one day and haven’t worked since, this was before the iPhone and x86 based mac’s. Such a shame that’s all gone, there were some dedicated people at Apple that loved their jobs there, me included.... I miss those days......
Hope you’re doing well.. i just started at apple at the same location as a tech support but as a contractor . I really enjoy it here hopefully i can stay for long
us wages is simply too high, plus the production infrastructure well have to be built. All that cost is certainly going to be reflected on the price tag
@@clementyang5260 wages are not the major factor. The main problem in the U.S. is a lack of components, tool-and-die machinists, industrial engineers, and also the LACK OF A BUSINESS FRIENDLY POPULATION. I admire and support Mr. Trump, but many Americans today would rather not have dirty, noisy factories and plants in their towns. So, we get what we deserve -- someone else becomes the experts and we become the peasants.
In the early part of Apple's ascent with the Iphone, they had a fitment issue with the glass (Iphone 3 perhaps, not sure). Foxconn called in 1000 employees (they stay in dorms next to the plant) overnight to replace the glass screen. Several hundred thousand phones, tea, a biscuit and 14 hours straight through. You'll never, ever get a US workforce to mobilize in such a way. Will not happen unless it's the Marine Corps.
You mean the cost of the materials alone? So if you produce something through extensive research and development, you'll price your product based on the cost of materials only?
Give me a break people. Even when you consider all that, apple still puts a bigger margin of over 75% on top of that (way more than the competitors), just because they are known as an 'deluxe item' and have fanboys who buy it anyway. The same concept with starbucks. The price is not justified by quality alone, its part of the marketing: its about showing that you made it, you are able to buy the priciest brand. A very american marketing concept, in other countries the USP is just quality alone. (Not saying apple products are bad, but saying they're not way overpriced is delusional)
Tong Zou Actually... I would call it “10” because I knew it was the 10th year anniversary of the iPhone. The only people who would say “X”, are people who weren’t educated about the naming scheme, like yourself.
Tong Zou This is WSJ tho, they’re supposed to do their research. Sure, a lot of people call is ex es, but if you’re writing/making a video about something for WSJ, you do your due diligence
I pray whoever reads this should become successful. keep l for success. the rich stay rich by spending like the poor and investing why the poor stay poor and be spending like the rich yet not investing. Roar! Invest earn and be successful.
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I haven’t watched the video yet but I’m guessing it’s because the US doesn’t have the factories, labor force and Americans expect to be paid minimum wage at the very least? Alright unpause
ALIENdrifter66 actually an iPhone costs around $200-300 to make. Which if you pay $1000 sounds a lot, but that doesn’t include shipping, and storing these things, taxes, wholesale price, marketing and that huge building and the 1000s of staff Apple has in house, R&D. And product is not actually the main income, they make a lot more money on services and licensing, if you buy anything legit with a lightning cable, they pay Apple a fee. You’ll see that with all companies. Xiaomi and Huawei are banking on other parts of their company for income, their handset division especially Xiaomi the margins are quite small. I think companies like Sony and Microsoft usually lose money per unit of their device sold, as they just want people to buy games and subscribe to their services.
@@sloppynyuszi If you believe it costs that then Ok for you but it doesn't. One thing is adding up all the components to make 1 phone, that may add to 200 or 300, but when you take into account how manufacturing works and how many they phones they make the end result is much lower. If they didn't charge much more than what their products cost they would be the biggest company out there.
Back in the days company never even made a crazy profit like they do today. Company and the government made a idea that manufacturing in China will make stuff cheaper and make America money. B.S the only one who makes more money are the rich not the poor and no product has not become cheaper look at the Iphone for example they have been jacking up the price each year with little to no innovation rather then a update.
Here’s an idea, move manufacturing to our territories like Puerto Rico where the wages are lower. People who live in the states will be more likely to move to a plant in Puerto Rico versus to China or other countries. Plus, it’ll help develop those places while still staying all under the US economy.
It’s about how easily you can get the components. In the US you need to take ages to find some kind of bolts. In China, there are complete supply chain for almost everything.
dingle_mccringleberry I’m sure it is, but again they can pull talent from all 50 states and territories versus in China they have to pull at least 50% from China, including top management. Who’s to say we can’t contract Chinese workers to Puerto Rico for the lower wages, where they’ll at least reinvest their earnings back into the local economy as opposed to China. Plus, manufacturing is moving more towards automation so I don’t think labor is as big of a deciding factor as it used to be.
-PARADOX- well i think China just waived about 15-16 American products that were originally scheduled to be taxed as a possible friendly negotiating gesture ahead of their upcoming trade talk with President Trump... So maybe the taxes are working? Plus the new apple products that were released today don’t seem to have increased in price as of yet with their brand new iPhone 11pro being priced around the $1049-$1099 mark and etc.
-PARADOX- ok but the point it is to move it out of price range so that we look for alternatives ect. So if don’t buy it China also suffers. So while the tax is on the USA customers they don’t have to buy it and that would lead to China having to change policies. I am personally not in favor of trade wars but the China USA imbalance has gone on to long and needs a correction.
And the point is assembled is one thing but baring a sticker that says proudly manufactured in the USA is another assembled with outside parts yes not manufactured in the United States
And then there's the Apple tax. Apple copies from others, gives it a new name and puts its own Apple tax on it which makes it pricier for poor people who buy their products on financing.
does really anyone think that if a $1,000 apple product will cost $1,050, people won't buy it? C'mon!!! people will complain for 3 seconds and then buy it.
@@Nanix1991 Exactly what I thought about writing! It'll be 1500 or maybe much more than that. Also getting the resources and manpower to produce those products aren't available to cater to scale.
Please watch the video. The biggest problem is the supply chain and unable to source everything that’s needed. So it would cost more like $1,500-$2,000 AND make it near impossible to meet demand. If they could meet the demand for Mac Pros which run in the 5 digits and thus not a top seller how could they hope to meet demands for an iPhone even if it was $2,000
Companies should move more manufacturing to mexico. I’ve seen more and more companies make the change and if you think about it, it’s a no brainer. Labor would be more cost effective than if it were manufactured in the US and it would help support jobs with our neighbor, hopefully softening the immigration crisis. Product transport would be quicker, cheaper and better for the environment as well.
they are only assembling in India because they have to in order to avoid 20% tax by law they want to capture the market so its a win situation actually
It’s not only about labor, it’s about rare earth metals and semiconductors. In China the reserve of rare metals is around 44 million tonnes, while in the US the reserve is around 1.4 million tonnes only.
@@princesidon @Prince Sidon You know about that supply and demand thing, right? So like, if manufacturers need components, like _demand_ them, then *just perhaps*, vendors will develop manufacturing/work with Apple design to create a feasible way to _supply_ them.
Used to be cheap, yeah. But its not like wages never rise; you probably make more per hour than your great grandfather. It's excellent supply chain because value is created both ways: the company as a whole profits, while the worker gets money and experience (two things that can help one get better jobs, afford school, or be able to invest that money for future profits). And those inhumane working conditions in China? That's because the Chinese value hard work over all else, and that hard work will honor one's family. But of course they're still human, so that kind of life isn't always sustainable (hence high suicide rates). But who are we to judge another's culture? Is that not the leftist ideal after all, no culture is superior to the other?
Direct labor costs are only one factor. Another one is supply chain and cost and speed of sourcing your other components. A shame that this basic economic understanding is not part of the documentary and instead non relevant scenes of some president shown
Apple's supply chain had 807 factories in 2018, 383 of them were in Mainland China, nearly half. Apple's major 200 components companies, 70% of them were in East Asia (Mainland China, Taiwan, Japan and South Korea). That's why Apple decide to assemble most products in China.
Furthermore, apple sold 200 millions iPhone every year & need about a million work to produce it , which city & state can be find in such huge workers in US ??!
What about the other option -(ccontinue manufacturing in China and hold prices at current levels)? Apple's gross margins are enormous and the company could easily absorb the tariff impact without impacting sales.
They just won't. After they leaving 3-dollar-per-hour China, where do you think they would move to? 15-dollar-per-hour USA or some 1-dollar-per-hour country like SouthEast Asia or India? Corporate tax cuts? That means more federal budget deficit and more tax for middle class. And then after a few years, when the crowd forget about this, corporates pays politicians to outsauce these jobs again and keep the low tax rate. Once that money is in corporates' pockets they'll use their ways to keep it. The true ruler is the company, not some orange President T or black President O.
Automated factories in the US isn't impossible, and there'll still be employment (since they're usually 80-90% robot, 10-20% human), not as much employment as we'd like but it;d be better than nothing.
For most "made in America" products and tools, made in America only refers to the paper packaging in which the Chinese products are replaced in after arriving in America before US sellers tripling the price nowadays even Milwaukee tools are 100% Chinese and Apple is for 98% build out of Korean and Chinese parts
@@SpongeTron456 because it ain't cheap. Not cheap, skilled workers would lead to higher production costs and it will drive up prices. The consumers won't be willing to purchase that high a price.
Everyone thinks about China in the early industrialization with extremely low manufacturing wages. However, the problem is the US government. We have a very steep corporate tax and we are over regulated. If we let the market breathe, we will have manufacturing back. We also have union nightmares.
Now that many of us are sitting at home, due to the social distancing and the COVID-19 pandemic this conversation is taking a new twist. Many have begun asking why so many things that we need, devices and products critical to numerous sectors, are not made here in the United States where we have access to adjusting their production. People are beginning to see that we got to this place for a number of reasons and the consumer shares a portion of the fault right alongside the producer of the item in question. At this point, the question may not be as much why we don't make a given widget here as it should be, "How much time, effort and development would it take to get to a place where these "critical products" are made within the country?"
It’s harder simply because the profit will be lower. Not because anything else. Clean and cut business decision. It doesn’t make this decision moral or right, it’s just the reality of big corporations.
China is stealing American intellectual property. American companies are selling our country for profits. Short term thinking forgetting about the long run. We are beholden to China let's face it.
It would be interesting to see how costs would stack up. Besides, I didn't expect this the to be the core argument. Apple is not the kind of company that needs exposure to thousands of different manufacturers, because they don't produce thousands of different products, but more like 16 and a few accessories.
China is not just about cheap labor, they have supply chain and skilled workers
And infrastructures like ports, roads, electricity supply, tolerance of pollution, and factories.
Apple found lighting in a bottle. Finding skilled Chinese workers. Most things that are made in China, break very easy.
" Most things that are made in China, break very easy. . . . "
Are you seriously saying that? in 2019?
Wahyu Setiawan nah bro that’s called planned obsolescence so big corps can sell you more sh*t. I wasn’t aware of it either until I watched the strange parts channel. China has a very skilled electronic manufacturing sector
They also have oppressive laws that keep the workers in line, and little-to-no environmental laws.
You must be crazy to think that manufacturing will be coming back to US
Tell that to the industrialised part of this country. Who vote in snake oil sales men. Promising to bring back industry and reopen coal mines.
The manufacturing plant will increase pollution in the US, if they come back
It will... Automation and Robotics will takeover and factories will run virtually labour free.
@@aryan991000 that is after automation of the supply chain first... all the components, but still have to deal with abundance and cost of raw materials.... in a nutshell, any company that wants to succeed building in U.S. must be vertically integrated. they need to invest and own all parts of the supply chain, from material procurement to fabrication to final assembly, and need to be expert in everything they touch. huge scale and lots of investment.... downfall is if their products tank or have a down year, struggle ensures.
Another option is for government to subsidize creation of automated vertical supply chain as form conglomerate subcontract manufacturers here in the states. in turn, they can provide services to multiple u.s. companies and diversifies the risk when a company or product tanks. risk will be trade secret shared when it's not tightly controlled in-house.
Well, the orange moron, IS crazy. That is not news.
apple: Screen from korea, chipset from taiwan, design in california, all other parts are and assemble in china.
Chip design in England, they're literally everywhere
If iPhone get made in America they will retail for $30,000
The fan boys will still buy it. Great plan 👍👍
They said an extra $40.
Fake news.
@@rpier8357 extra 40$ if made in China after December 15 due to tariffs
They tried “Made in USA” for Mac Pro, too expensive, didn’t sell well, now they’re falling apart
Because if it was done here it will cost 3X more since americans arent willing to work for little pay.
No American can compete with Chinese $9 a day wages.
Marcel Rodriguez despite people getting by, I don’t think Americans can work for little pay. Not with increasing degree of capitalism
Apple has more than enough money to pay American workers their due and still profit excessively without raising iPhone prices. In fact the latest iPhones that were announced actually decreased in price due to the trade war.
Jonathan Moosey no they decreased in price due to cost cutting in the screen of the cheaper Iphone 11 base phone. They are using a cheaper LCD instead of the OLED screen of the Pro version. The Iphone 11 pro is still like $1400 lol
Why RuMad well don’t you just act like you know it all? Such a hate-filled and bigoted statement.
I worked for Apple (and other companies) in the early 2000’s in Elk Grove, California and made PowerMac’s, this was after the colored CRT iMac’s use to be made there until the iMac LCD that was made in China. It’s a shame those plants were shut down, after they started dropping people I went to work at AppleCare in the next building. I enjoyed making PowerMac’s more, really fun work and the days went by fast ‘cause I was busy, I was a failure analysis engineer on the production line, the products I helped make were the G4 Cube (I still have mine in the box) the Quicksilver PowerMac G4, the PowerMac G5, the Xserve... and I think that’s it. I was disabled in a car accident coming home from work at Apple one day and haven’t worked since, this was before the iPhone and x86 based mac’s. Such a shame that’s all gone, there were some dedicated people at Apple that loved their jobs there, me included.... I miss those days......
How are you doing now?
Hope you’re doing well.. i just started at apple at the same location as a tech support but as a contractor . I really enjoy it here hopefully i can stay for long
China bought the electric companies in latin america and now its doing in the US. U should miss those days because now US its bleeding and needs trump
Making apple products in US will still be costlier than apple product after paying for tarrifs.
Not when you can't GET Apple products from China any more...
us wages is simply too high, plus the production infrastructure well have to be built. All that cost is certainly going to be reflected on the price tag
@@clementyang5260 wages are not the major factor. The main problem in the U.S. is a lack of components, tool-and-die machinists, industrial engineers, and also the LACK OF A BUSINESS FRIENDLY POPULATION. I admire and support Mr. Trump, but many Americans today would rather not have dirty, noisy factories and plants in their towns. So, we get what we deserve -- someone else becomes the experts and we become the peasants.
Maybe Apple will shift focus on other markets than the US.
Peacekeeper ineed they're trying to hack India
If apple products are made in US the lightning cable would cost $599 on retail
jerolvilladolid 😂
Bro. No joke, there are American HIFI companies that sell audio cables for like a couple hundred dollars.
Lol 😂 😂👌
You’re an idiot
Hippity Hoppity no u
Great piece. I love the editing and though pit into the video. Great job guys.
Now the apple monitor stand is $4,999!
And the display is $34,999!
Lol.
Lol
lol
Lol
America don’t blame apple blame your infrastructure even if apple wanted to make their products they will not have enough suppliers to do so
Or they could blame that orange moron they voted into power
They are blaming China for being too good apparently.
That's BS...
The infrastructure is based on FOREIGN suppliers and manufacturers.
BRING IT ALL HOME, where it used to be.
Jimeth that problem has nothing to do with Trump being elected lol wth
How about we blame your sort of moron instead?
In the early part of Apple's ascent with the Iphone, they had a fitment issue with the glass (Iphone 3 perhaps, not sure). Foxconn called in 1000 employees (they stay in dorms next to the plant) overnight to replace the glass screen. Several hundred thousand phones, tea, a biscuit and 14 hours straight through. You'll never, ever get a US workforce to mobilize in such a way. Will not happen unless it's the Marine Corps.
Because then people would know the actual cost of an Iphone.
You mean the cost of the materials alone? So if you produce something through extensive research and development, you'll price your product based on the cost of materials only?
Lol,even if we know the real cost material to make an iphone,doesnt mean everybody can make it lol.
Give me a break people. Even when you consider all that, apple still puts a bigger margin of over 75% on top of that (way more than the competitors), just because they are known as an 'deluxe item' and have fanboys who buy it anyway. The same concept with starbucks. The price is not justified by quality alone, its part of the marketing: its about showing that you made it, you are able to buy the priciest brand. A very american marketing concept, in other countries the USP is just quality alone. (Not saying apple products are bad, but saying they're not way overpriced is delusional)
0:26 I think what you was ment to say was «Tim Apple»
Funny WSJ grayed out Taiwan but many of the components in the iPhone is Made in Taiwan
The company that manufactures the Iphones, Foxxcon, is based in Taiwan.
Jasc Random But most of their factories are in mainland China
@@johniii8147 Ironically.
CPU is made atTSMC that is based on Taiwan
Darth Wheezius Design by Apple but manufacture at TSMC
“Ex es” are you serious?
Tong Zou “X” is the Roman numeral for “10”. So its “10 es”.
Tong Zou Actually... I would call it “10” because I knew it was the 10th year anniversary of the iPhone. The only people who would say “X”, are people who weren’t educated about the naming scheme, like yourself.
Tong Zou I was talking about this year’s naming scheme, but okay...
and this is supposed to be 'professional'...
Tong Zou This is WSJ tho, they’re supposed to do their research. Sure, a lot of people call is ex es, but if you’re writing/making a video about something for WSJ, you do your due diligence
Designed in California, Assembled in USA
Price tag : $3000 for iphone 11 pro basic model...
I pray whoever reads this should become successful. keep l for success. the rich stay rich by spending like the poor and investing why the poor stay poor and be spending like the rich yet not investing. Roar! Invest earn and be successful.
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Love your videos! So interesting and well made! Keep up the good work :-)
So does Jeff Bezos.
THEY HAVE NO SOURCES
China bought the electric companies in latin america and now its doing in the US. U should miss those days because now US its bleeding and needs trump
I haven’t watched the video yet but I’m guessing it’s because the US doesn’t have the factories, labor force and Americans expect to be paid minimum wage at the very least?
Alright unpause
It's simple, they don't want to lose the 80-90% margin they have with each product they sell
ALIENdrifter66 actually an iPhone costs around $200-300 to make. Which if you pay $1000 sounds a lot, but that doesn’t include shipping, and storing these things, taxes, wholesale price, marketing and that huge building and the 1000s of staff Apple has in house, R&D. And product is not actually the main income, they make a lot more money on services and licensing, if you buy anything legit with a lightning cable, they pay Apple a fee. You’ll see that with all companies. Xiaomi and Huawei are banking on other parts of their company for income, their handset division especially Xiaomi the margins are quite small. I think companies like Sony and Microsoft usually lose money per unit of their device sold, as they just want people to buy games and subscribe to their services.
@@sloppynyuszi If you believe it costs that then Ok for you but it doesn't. One thing is adding up all the components to make 1 phone, that may add to 200 or 300, but when you take into account how manufacturing works and how many they phones they make the end result is much lower.
If they didn't charge much more than what their products cost they would be the biggest company out there.
Hard to read their financial reports? The average profit margin they've had for years is 38.5%.
You obviously know nothing about manufacturing, logistics, and R&D costs.
That 'Made in USA' writing on device would matter.
Not only the China has lower labor cost, that's just one thing, China has very mature supply chain. Manufacturing is a complicated industry.
Profit margins are huge on Apple products. They could easily absorb the tariff costs without trickling it down to the consumer.
Why would they when you're going to buy it anyways
China bought the electric companies in latin america and now its doing in the US. U should miss those days because now US its bleeding and needs trump
Not loose $40 in $999 but about $500 in profit if they assemble in US.
True that boi
$40 per unit was the cost of the tariff not the price difference for US manufacture
@@PabloGonzalez-hv3td Yes, I know the tariffs. But if they move the plant and make in US then the profit will be low.
Back in the days company never even made a crazy profit like they do today. Company and the government made a idea that manufacturing in China will make stuff cheaper and make America money. B.S the only one who makes more money are the rich not the poor and no product has not become cheaper look at the Iphone for example they have been jacking up the price each year with little to no innovation rather then a update.
@@RicePho Yes, nothing new on iphone and so I quit in 2017.
Here’s an idea, move manufacturing to our territories like Puerto Rico where the wages are lower. People who live in the states will be more likely to move to a plant in Puerto Rico versus to China or other countries. Plus, it’ll help develop those places while still staying all under the US economy.
Dam thats a good idea
Wages are lower in PR but their labor productivity is terrible.
It’s about how easily you can get the components. In the US you need to take ages to find some kind of bolts. In China, there are complete supply chain for almost everything.
No
dingle_mccringleberry I’m sure it is, but again they can pull talent from all 50 states and territories versus in China they have to pull at least 50% from China, including top management. Who’s to say we can’t contract Chinese workers to Puerto Rico for the lower wages, where they’ll at least reinvest their earnings back into the local economy as opposed to China. Plus, manufacturing is moving more towards automation so I don’t think labor is as big of a deciding factor as it used to be.
If iPhone’s are made in America, then congrats we’ve achieved automation
did you know that the lightning to 3.5mm headphone jack adapter is assembled in vietnam?
with workers from North Korea/ im not joking... just asking
Steve Jobsarentcomingback
Steve aint
“XS”? It’s called the ten s why did no one correct her
that would be excessive
Joe Tairei but like they have teams of editors and not one of them just real quick could have said hey this is how you pronounce it lol
wsj might brand you as a nazi
It's been advertised and been pronounced as 'XS' even though it is the roman numerical for 10. ANother example how Apple is an expert salesman.
@@brycemaldet1645 I know, I was making a joke but no one got it :) X-S-ive
I somehow guessed it was the Mac Pro (2013), not knowing that it was made in the US...
In a current state of global economy getting back production in US is impossible.
Tax China is just like Taxing the USA people as well.
It is not just like. It is exactly like.
-PARADOX- well i think China just waived about 15-16 American products that were originally scheduled to be taxed as a possible friendly negotiating gesture ahead of their upcoming trade talk with President Trump... So maybe the taxes are working? Plus the new apple products that were released today don’t seem to have increased in price as of yet with their brand new iPhone 11pro being priced around the $1049-$1099 mark and etc.
-PARADOX- ok but the point it is to move it out of price range so that we look for alternatives ect. So if don’t buy it China also suffers. So while the tax is on the USA customers they don’t have to buy it and that would lead to China having to change policies. I am personally not in favor of trade wars but the China USA imbalance has gone on to long and needs a correction.
Only if you buy Chinese stuff.
America cannot tax China. Tariffs imposed by Trump are all paid by Americans.
2:44 lolz 😂
The mark-up on Apple products is already so high that a tariff would only take away slightly from Apple's profits. It shouldn't lead to higher prices.
The new Mac Pro is actually also assembled in the US
And the point is assembled is one thing but baring a sticker that says proudly manufactured in the USA is another assembled with outside parts yes not manufactured in the United States
The new Mac Pro is actually assembled in the USA.
i wanna change my iphone but im not sure, should i wait for a 5g version ?
i have a 6s
@Cyber Crow my screen is broken for like 1 year lol
5G is still years away. Just use what works for you now. If you want a more modern phone, get a used or refurb iPhone X on Ebay; you won't regret it.
@@ChickensAndGardening 5G is still years away *in the US
4:41 why he talk with so much hustle
And then there's the Apple tax. Apple copies from others, gives it a new name and puts its own Apple tax on it which makes it pricier for poor people who buy their products on financing.
Global companies need a global supply chain.
does really anyone think that if a $1,000 apple product will cost $1,050, people won't buy it? C'mon!!! people will complain for 3 seconds and then buy it.
but it won't cost 1050 but 1500. You are quite idiot aren't ya? Global supply chains are integrated to make it cheap
@@Nanix1991 Exactly what I thought about writing! It'll be 1500 or maybe much more than that. Also getting the resources and manpower to produce those products aren't available to cater to scale.
idiot is who talks without listening the video before
Please watch the video. The biggest problem is the supply chain and unable to source everything that’s needed. So it would cost more like $1,500-$2,000 AND make it near impossible to meet demand. If they could meet the demand for Mac Pros which run in the 5 digits and thus not a top seller how could they hope to meet demands for an iPhone even if it was $2,000
Apple zombies will buy the products anyway
It would be awesome to see more stuff made outside of China.
Companies should move more manufacturing to mexico. I’ve seen more and more companies make the change and if you think about it, it’s a no brainer. Labor would be more cost effective than if it were manufactured in the US and it would help support jobs with our neighbor, hopefully softening the immigration crisis. Product transport would be quicker, cheaper and better for the environment as well.
Ah yes the Cartel ridden landscape of Mexico a perfect place to import and/or export highly expensive products, recourses and components.
China bought the electric companies in latin america and now its doing in the US. U should miss those days because now US its bleeding and needs trump
4:42 *Tariff exclusions?* Trump really thought his tariff war thru. LOL
Soon Made/Assembled In India. :)
Antarctica*
I’d rather India then giving more money to China
Taiwan, the real government of China
Most major components are still made in USA. Only assembly happens in China and India, but yes soon assembled in India may be a thing we’ll be seeing!
they are only assembling in India because they have to in order to avoid 20% tax by law
they want to capture the market so its a win situation actually
It's all about cutting corners and making profits if they had it their way children would still be making iPhones in sweat shops
I’d totally be willing to pay more for Apple products if they moved at least some aspect of their production back to the US
It’s not hard, it’s just expensive af
Get ready for the next big thing
10 cameras on the iPhone X11 EXR?
What happened to the assembly line that made the Mac Pro?
It’s not only about labor, it’s about rare earth metals and semiconductors. In China the reserve of rare metals is around 44 million tonnes, while in the US the reserve is around 1.4 million tonnes only.
It’s not “harder” it’s just more expensive.
It's definitely harder. China has an instant supply to necessary items. America doesn't.
Except for you know you having too virtually create the supplier, in China they can scale production to almost any scale.
@@princesidon @Prince Sidon You know about that supply and demand thing, right? So like, if manufacturers need components, like _demand_ them, then *just perhaps*, vendors will develop manufacturing/work with Apple design to create a feasible way to _supply_ them.
Child labor, inhumane working conditions, crazy low payment for workers ? No ofcourse its good supply chain.
The best!
Used to be cheap, yeah. But its not like wages never rise; you probably make more per hour than your great grandfather. It's excellent supply chain because value is created both ways: the company as a whole profits, while the worker gets money and experience (two things that can help one get better jobs, afford school, or be able to invest that money for future profits). And those inhumane working conditions in China? That's because the Chinese value hard work over all else, and that hard work will honor one's family. But of course they're still human, so that kind of life isn't always sustainable (hence high suicide rates). But who are we to judge another's culture? Is that not the leftist ideal after all, no culture is superior to the other?
How do you think you know where they actually make these devices and components?
Direct labor costs are only one factor. Another one is supply chain and cost and speed of sourcing your other components. A shame that this basic economic understanding is not part of the documentary and instead non relevant scenes of some president shown
Answer: no one wants to work in a factory
They should me made in USA Be American. Buy American. Be Patriotic
But it cost money...
Money exists
Money.... It Costs Alit
good documentation ……..
think about how much they will be if they're made in the state just consider the Labor cost
Did a wall street journal video just refered the iPhone 10 s as "ex" s"???
Apple's supply chain had 807 factories in 2018, 383 of them were in Mainland China, nearly half.
Apple's major 200 components companies, 70% of them were in East Asia (Mainland China, Taiwan, Japan and South Korea).
That's why Apple decide to assemble most products in China.
Furthermore, apple sold 200 millions iPhone every year & need about a million work to produce it , which city & state can be find in such huge workers in US ??!
China bought the electric companies in latin america and now its doing in the US. U should miss those days because now US its bleeding and needs trump
What about the other option -(ccontinue manufacturing in China and hold prices at current levels)? Apple's gross margins are enormous and the company could easily absorb the tariff impact without impacting sales.
That's not how capitalism works you nimrod.
They just won't.
After they leaving 3-dollar-per-hour China, where do you think they would move to? 15-dollar-per-hour USA or some 1-dollar-per-hour country like SouthEast Asia or India?
Corporate tax cuts? That means more federal budget deficit and more tax for middle class. And then after a few years, when the crowd forget about this, corporates pays politicians to outsauce these jobs again and keep the low tax rate.
Once that money is in corporates' pockets they'll use their ways to keep it. The true ruler is the company, not some orange President T or black President O.
0:24 he said: chaynaa
Even WSJ called it iPhone X, not ten lol
Ten means x just in different languages or writing.
Automated factories in the US isn't impossible, and there'll still be employment (since they're usually 80-90% robot, 10-20% human), not as much employment as we'd like but it;d be better than nothing.
For most "made in America" products and tools, made in America only refers to the paper packaging in which the Chinese products are replaced in after arriving in America before US sellers tripling the price nowadays even Milwaukee tools are 100% Chinese and Apple is for 98% build out of Korean and Chinese parts
Those jobs ain’t going back
Jobs did want more than factories for Americans
I don't think Jobs is ever coming back, he's dead
Jobs doesn't want jobs in America
@@SpongeTron456 because it ain't cheap. Not cheap, skilled workers would lead to higher production costs and it will drive up prices. The consumers won't be willing to purchase that high a price.
American workers are too expensive. Dream on, capitalism needs cheap workers.
Yeah, what happens when you don't have any workers? You'll be able to just keep buying stuff from other countries with your magic money?
Manufacturing can be brought back to first world countries when automation has become the norm and people don't actually work anymore.
apple is like: kkkkk chill man i will build one k?
Stopped listening when she pronounced "10 S' "Ex-S"
It's a common mistake for anyone who isn't an Apple fanboy. Blame it on Apple for using Roman numerals.
I still call it ex s 🤷🏿♂️
IKR
@@richarda3764 I have never owned apple device yet I know it is ten s
The lack of what’s amounts to a captive work force that has no life outside of work is difficult to compete with
THEY HAVE A LACK OF SOURCES
Instead focusing on iphone, how about start with planes, ship, vehicles, mega stuff in usa ?
If apple products were made in usa it could be too expensive because labour cost is too high and components in the products are too expensive in usa
It’s funny how trump referred to Tim Cook as his friend 💀
Oof
it is making the new Mac Pro in the United States!
1:10 its pronounced 10s
Everyone thinks about China in the early industrialization with extremely low manufacturing wages. However, the problem is the US government. We have a very steep corporate tax and we are over regulated. If we let the market breathe, we will have manufacturing back. We also have union nightmares.
TOMORROW IS APPLE EVENT
IPHONE NO?
vinod yeah it is
vinod 🐷🐷🐷🐀🐀🐀🐕🐕🐕👎🏻👎🏻👎🏻🤮🤮🤮
I do watched it
TWO WORD : Maximize Profit
Didn't Tim Cook state that Apple can't manufacture in US? Even Mac Pro tiny production was a problem in US. Insufficient parts.
Now that many of us are sitting at home, due to the social distancing and the COVID-19 pandemic this conversation is taking a new twist. Many have begun asking why so many things that we need, devices and products critical to numerous sectors, are not made here in the United States where we have access to adjusting their production. People are beginning to see that we got to this place for a number of reasons and the consumer shares a portion of the fault right alongside the producer of the item in question. At this point, the question may not be as much why we don't make a given widget here as it should be, "How much time, effort and development would it take to get to a place where these "critical products" are made within the country?"
TEN ES. sorry I had to.
I live in hk and even most ppl in hk like Obama
I mean, if you compare him with Trump, most people will like Obama
Google tried with there Motorola phones. Built a new plant down in Texas. I think it lasted about four months before they closed it down.
What a conclusion you made there!! Hahaha
This report is outdated and inaccurate as Apple has confirmed the new Mac Pro WILL be assembled in the US.
from parts made in China :)
Прикладна Економіка true 😂 It would be naive to think that Apple can survive without China now
@@aunglin727 Apple can but it will be costly to build factories in another country + personnel there will learn for a while.
Keyword is assembled.
@@user-rs5hb6gd8e it'll be cheaper to even open a factory in other countries compared to relocating back to the States.
"To which Jobs said, those jobs aren't coming back"...
...
Pretty straightforward
Xr is now also made in Chennai, India.
Insane cette video
Can we get enough Americans off drugs to work in the factory?
No can do, we need them to work in the prisons.
Would be nice if they fixed Detroit like that
No these drug addicts have to stay in prisons so these private sectors can get funds off the tax payers.
@@Clarity520 and big pharma can sell their opioid
Why would we want to put druggies in factories...? They’ll just spend their money on dope and end up calling in sick when they have no more food...
They are not correct - the new Mac Pro is still made in Austin, Texas.
Is texas in Russia.
2:48 Ayy big up Austin Texas!
Hello, neighbor from DFW
It’s harder simply because the profit will be lower. Not because anything else. Clean and cut business decision. It doesn’t make this decision moral or right, it’s just the reality of big corporations.
“The new IPhones look ugly” - E G G
Apple should just continue making their products in eastern Asia and designing them in North America and Europe
China is stealing American intellectual property. American companies are selling our country for profits. Short term thinking forgetting about the long run. We are beholden to China let's face it.
It would be interesting to see how costs would stack up.
Besides, I didn't expect this the to be the core argument. Apple is not the kind of company that needs exposure to thousands of different manufacturers, because they don't produce thousands of different products, but more like 16 and a few accessories.
You vastly underestimate how many different manufacturers are involved in making a single Apple product.
@@bailewen Must be so. Could be due to effective marketing of their simplicity philosophy. If I had to guess Id have said maybe 50 for manufacturing.
Iphones costs will shot up atleast 50%. That's guaranteed
China bought the electric companies in latin america and now its doing in the US. U should miss those days because now US its bleeding and needs trump
if you increase the tax on outsourcing enough, us companies would be forced to manufacture domestically. it's just a balance of numbers to a business.