” This reflects ... Apple’s profit margin (typically 60–62%).”
I think we’ve located room for some cost increases.
Hint: Companies don’t charge the total of their costs, but what the market will bear, for their products.
you could give it a better prompt, saying something like, assuming you are a US based supply chain expert, etc. (ie, to get a deeper, more well thought out professional answer...).
My personal opinion is that once American problem solvers put their minds to this, it will get done and the US based products will be competitive, very quickly....
Maybe I’m wrong, but that’s my opinion.
Practically all the manufacturing of a smartphone can be automated, very few humans needed................
Is the article making the case for lower labor costs? I’m confused..because it certainly seems like it.
Seems like a good case for doing away with federal mandated minimum wage.
Equine feces. We have all of those minerals, but many if not most are sequestered by environmental set-asides, distorting both strategic availability and price. Consider Chocolate Mountain.
So we asked a big tech google search accumulator that presents the results in conversational style rather than as a list, with all the parameters set by big tech, what it would cost to force big tech to not built it in China?
No vested interest there, no sir...
“The U.S. lacks the scale and expertise of China’s manufacturing hubs “
This is a significant disadvantage in a war. And alone is enough reason to move manufacturing processes back here.
Well that is more costly but clearly not “The End of the World As We Know It”.
I was listening to Peter Zehan talking about the impact of technology on manufacturing and farming. He said, in the US and probably only in the US the cost of modernizing and robotizing the manufacturing process and farming process can be amortized. The market is big enough and the farms are large enough to make large scale industrialization possible. He recounted the story of a shirt factory moved from China, where it employed hundreds of people at sewing machines to a fully automated US facility with two employees on staff at any time. One loaded bolts of cloth and the other managed software. The facility produced shirts at a fraction of the cost of producing in China.
As for agriculture, advances in AI and video meant a machine rolling over the rows of food could instantly assess the needs of each plant spraying with insecticide, or nutrients as required. Essentially industrial scale gardening.
The entire supply chain would be shorter and therefore cheaper. As is shipping to the final market.
When we evaluate a change, we do so assuming all else remains constant.
Stopped reading there.
For instance, China supplies 85% of global rare earths, and there are no bauxite mines for aluminum in the U.S
So what? The largest producer of bauxite ore is Oz. One of the largest producers of recycled aluminum is … the United States.
Everything in that article is based on an invalid assumption - Foxconn is ‘obligated’ to source almost everything not Taiwanese through the PRC. If the phone were to be built in the US, it would be built without the inefficiencies of a monorithic communist centrah-pranning confucian backwater motard PRC.
This was an exercise in Stupidity!
Interesting.
Multiplied by the number of I-phones that I have to replace, or will ever purchase, this will cost me about $00.00.
So it might cost $500 more to manufacture.
That’s nothing.
It didn’t factor in the fact that there are no cellphone factories in the Americas (both continents). So first you have to build a factory. Which you shouldn’t really do because so much of the market is in Asia.
If we kept the slaves of our past, they too could be making Apple phones I suppose.