Posted on 03/02/2016 12:29:52 PM PST by central_va
Here is what I thought-—and I don’t doubt that phones are built for a fraction there of what they could be built here-—but IMAGINE if you moved that factory to, say, Detroit. It would be overnight the largest factory in the city AND would nearly double the size of Detroit.
Trump’s question is why aren’t we building these factories here? Of course they would cost “some” more? But that much more?
I used to be a 100% free trader. But trade isn’t “free” if you are selling soup and China is selling soup, but China won’t let you sell your soup on Chinese shelves. True free trade is products must compete in all circumstances.
No, not necessarily. I advocate true free trade. Any product, available to be traded in a competitive mode. But if your government restricts me from selling in your country, that isn’t free trade.
Well it must really irritate you that the USA was founded on the idea of protectionism.
Why would they need much labor anyway? Can’t robots replace most menial tasks?
Rush is right. For the price points to be meant many many things are made in China. Labor is too expensive over here.
Where the hell do you buy a new iPhone for costing $190 dollars ?
No where.
Unless you’re the one making the robots.
Hey, at least he wasn’t going into detail about his battery charging problems. Snooze fest, Rusty.
Consumer electronics products are thoroughly torn-down and cost-analyzed, all this is well known in the industry. Here is a teardown analysis showing the BOM cost of an iPhone6 at $236:
http://9to5mac.com/2015/09/30/iphone-6s-plus-teardown-analysis/
Parts cost is nearly exactly the same no matter where in the world you build it. Almost all assembly is automated and the machines don’t care which country they are sitting in. The main reason so much stuff is built in China is that the electronics manufacturing services industry grew massively there back when labor cost WAS a factor, and now that’s where the factories happen to be.
Boston Consulting Group has been writing about “reshoring” for years, and it is happening with certain industries and the states which are most favorable to business benefiting the most.
Agree 100%.
It’s not free trade. It’s RIGGED TRADE.
I know people who build airplanes for the big name companies, and their starting wage is only 14.80 per hour!! And they have to produce at the same rate and quality as those who get paid $38.00/hr. So if a Chinese phone laborer is paid $12.50 per hour, he’s being paid much better than a LOT of people in the USA.
Unless a person is a professional..ie doctor, or CPA, big business owner, I don’t know anybody who earns $125/hr.
I’m less concerned with the price than the principles involved. Why should Apple produce phones where it is less profitable. Unless they wish to be altruistic, why should they work for anyone’s benefit other than their own? Are you comfortable using the government to force people to work for the benefit of others?
We need to increase the H-1B visa quota for talk show hosts!
I find Rush tiring as well but mostly because we won’t commit to a candidate!
“Costing 190” means the cost of materials and labor. Price is what you and I pay.
I don’t feel knowledgeable enough to comment on this subject as far as technical/economic issues are concerned; however, Limbaugh’s propagandizing in favor of Cruz in this primary cycle (mostly sins of omission; “damning by faint praise” and “spin”) has only reinforced my belief that Rush is not an honest broker.
I would not mind if he admitted he is in favor of Ted (who, I believe, is the most Conservative candidate); I merely believe it is dishonest for Rush to pretend he is less than biased on this issue. He’s still interesting to listen to; just know you’re only getting his editorialized view on any subject.
” would guess the total man hours to make an iPhone is less that 2 man hours. Heck a mid size sedan only takes 30 man hours to make.
Asymco analyst Horace Dediu used the “Nightline” report to estimate that Apple pays labor costs of between $12.50 and $30 for every iPhone it makes, which represents just 2-5% of the iPhone’s sale price.”
That isn’t how labor costs are figured. You have to figure the cost of the whole labor force, not just the part working on the iphone.
Listening to Rush talk about Apple is like listening to a teenage girl talk about whoever the male heartthrob of the moment is. No point, nothing other than fawning, gushing praise will be heard.
They only include Apple’s labor costs.
All of Apple’s suppliers are also overseas.
What would that add into the labor costs if they were produced here?
Then add in our business regulation costs.
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