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Thursday, June 28, 2018

That iPhone plant they said would never be built is being built

“I think we’re going to get things coming. We’re going to get Apple to start building their damn computers and things in this country instead of in other countries,” Donald Trump told students at Liberty University on January 18, 2016.

Immediately the experts in the media and academia lectured the multi-billionaire on real-world economics.

"Sorry Donald Trump — the American-manufactured iPhone isn't going to happen," Business Insider reported on June 10, 2016.

Reporter Kif Leswing wrote, "MIT Technology Review has completed a study of how and where iPhones are made, and they've reached conclusions that make it clear that one of Republican presumptive presidential nominee Donald Trump's campaign promises is basically impossible."

Impossible.

Fortune magazine reported on January 19, 2016, "Trump provided no suggestions for how he would convince Tim Cook to abandon his company’s primary manufacturing base. Then again, it’s also unclear how a president ― any president ― would unilaterally impose a 35% tariff."

Presidents have had that power since Woodrow Wilson.

Fortune and Business Insider are self-proclaimed experts on business.

And then there was Gizmodo, a self-proclaimed expert on technology. Its January 18, 2016, report was headlined, "Trump Says He Will Force Apple to Manufacture in the US Even Though That Makes Absolutely No Sense."

Gizmodo said, "Apple outsources because it maximizes profit, but that is not the only reason. Asia’s electronics supply chains are much larger than what the US has to offer. Not only would Trump have to come up with a way to penalize Apple for outsourcing so harshly that it’d make sense to change its manufacturing model — he’d also have to help US manufacturing catch up to China so that Apple could feasibly begin production here."

Trump had only been CEO of his own company for 45 years. How nice to have a Gizmosplanation of capitalism.

After the election, President-elect Trump got Foxconn to commit to building a plant here. Vanity Fair blew it off as a PR stunt.

"While Foxconn’s announcement should cheer U.S. workers, if not Apple shareholders, there are plenty of reasons to doubt the extent to which either tech company will re-shore manufacturing jobs. For one, establishing the necessary manufacturing base and supply chain to manufacture Apple products in the U.S. is neither logistically nor economically feasible," the magazine reported on December 7, 2016.

"Apple sources its product components from factories across East Asia, including memory chips made in Korea and displays made in Japan, with assembly in China. The costs associated with moving those facilities alone would cost Apple billions. But the real costs would come from the higher price associated with U.S. labor, which would greatly increase the already-high retail prices of Apple’s devices. (The MacBook, for example, already retails at $1,299, making it among the more expensive laptop computers on the market, at a time when shipments of Apple’s flagship product, the iPhone, are shrinking.)

"Trump himself has no executive power to compel Apple to manufacture its products in the United States. He could impose tariffs on products manufactured overseas and imported, although Congressional Republicans have balked at imposing such a protectionist policy."

Today, the president and Foxconn officials broke ground on a $10 billion facility that will bring 13,000 jobs to Wisconsin.

The people who said it would not be done are now saying it is a bad deal. HuffPost reported today, "Democrats Hope Trump-Backed Foxconn Deal Will Be Scott Walker’s Downfall."

Wait a second, didn't the Democrats bring Walker down in 2011?

2012?

2014?

###

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Trump the Press covers the nomination.

Trump the Establishment covers the election.

Fake News Follies of 2017 covers his first year as president.

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15 comments:

  1. According ot Fox business this PM the deal Walker gave Foxcon was so rich in taxpayer funded incentives that Wi citizen polling is negative on the move. Unemployment in WI is only 2.8%. But Walkers dream of another silicon valley East may not be vapor. There is no doubt Obama would have done this is he could have, just to look cool.

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    1. I'm from Wisconsin, do not trust the polling. Wisconsin invented leftist corruption. They will do everything in an attempt to destroy repubs including raiding their homes in a john doe.

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    2. Silicon Valley is near San Francisco Dan.

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    3. What part of Madison do you live in.With no links ,go away with your BS.

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  2. People who hold jobs that Donald Trump got ‘em, and that the Dems would lose for ‘em, will be pretty much rusted-on Trump voters come election time.

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  3. The key phrase in the HuffPo strory is “Democrats Hope.” Between that and breaking the law, that’s about all they got left.

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  4. "Gizmosplanation": that word made my day. Thanks!

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  5. Long term, the Construction jobs plus the jobs when operational are well worth the tax breaks. Plus all of the ancillary jobs that will be created.

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    1. Plus the attractor of many other companies creating many other jobs.

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    2. Yep. Nebraska Furniture Mart's move into north Texas was decried by some as a corporate tax give away. Funny, when you look at the coffers of the town it's in, you notice it is fuller than ever.

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  6. Good Blog. Please visit my blog https://readsmarty.blogspot.com/ and provide your valuable opinions.

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  7. Labor costs are not the reason for the high prices of Apple products. The high prices of Apple's products are a brand premium that others who compete in a crowded market on the basis of price cannot charge. Apple does not compete on the basis of price. Higher labor costs in the US might crimp Apple's huge profits, but the retail prices of its products should change little because of this.

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  8. "The costs associated with moving those facilities alone would cost Apple billions."

    I'll bet the same argument was made about why the Japanese and Korean car companies would never, ever build manufacturing and assembly plants in the US.

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  9. It's good to remind folks that so-called "expert analysts" were really head-in-the-... ground useful idiots to the anti-American Dem globalist bullies.

    Most of them don't like Trump's Tweets -- but also don't read them, nor even quote in full any they don't like without then claiming it means something nasty which it doesn't really say.

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