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Why didnt Apple begin to onshore manufacturing years ago, and instead pivot to India?
Posted on 5/24/25 at 4:56 am
Posted on 5/24/25 at 4:56 am
In this age of AI and robotics, the cost of manufacturing as a percentage of overall cost would be minimal compared to their on shoring their business and having to pay higher US taxes.
Manufacturing costs, lions and tigers and bears oh my. Its a good reason.
The real reason, taxes.
They manufacture in china, yet their operations and distribution are headquartered in.....Ireland, wonder why?
Manufacturing costs, lions and tigers and bears oh my. Its a good reason.
The real reason, taxes.
They manufacture in china, yet their operations and distribution are headquartered in.....Ireland, wonder why?
Posted on 5/24/25 at 5:51 am to trinidadtiger
This genius named Ross Perot explained this in 1992
It's pretty simple: If you're paying $12, $13, $14 an hour for factory workers and you can move your factory South of the border, pay a dollar an hour for labor, ... have no health care—that's the most expensive single element in making a car— have no environmental controls, no pollution controls and no retirement, and you don't care about anything but making money, there will be a giant sucking sound going south.
... when [Mexico's] jobs come up from a dollar an hour to six dollars an hour, and ours go down to six dollars an hour, and then it's leveled again. But in the meantime, you've wrecked the country with these kinds of deals.[1]
It's pretty simple: If you're paying $12, $13, $14 an hour for factory workers and you can move your factory South of the border, pay a dollar an hour for labor, ... have no health care—that's the most expensive single element in making a car— have no environmental controls, no pollution controls and no retirement, and you don't care about anything but making money, there will be a giant sucking sound going south.
... when [Mexico's] jobs come up from a dollar an hour to six dollars an hour, and ours go down to six dollars an hour, and then it's leveled again. But in the meantime, you've wrecked the country with these kinds of deals.[1]
Posted on 5/24/25 at 6:06 am to trinidadtiger
quote:
They manufacture in china, yet their operations and distribution are headquartered in.....Ireland,
The best of all worlds.
They benefit from the hegemony of the US and its military without having to pay for it and avoid it's regulations.
You have to admire how well they set this up. Those Apple guys ain't dumb and their executives and shareholders have been highly rewarded for their brilliance.
This post was edited on 5/24/25 at 6:12 am
Posted on 5/24/25 at 6:33 am to TrueTiger
Not to mention they also have the power of the US govt threatening Europe with tariffs if they continue to sue our tech companies.
It is a beautiful set up, thats how you end up with 200 billion offshore.
Last time Trump gave them a one time mulligan to bring the cash home, many companies took the opportunity to on shore cash....buy back stock to fatten their options....and did no investment. So much for the carrot, now its time for the stick.
And hogwash about the labor costs. WTF is the largest chip maker in the world building a mega factory in the US, and we cant make phones?
All these clowns with the Apple stickers on the back of their cars, a foreign company.
Mercedes and BMW are more american than Apple.
It is a beautiful set up, thats how you end up with 200 billion offshore.
Last time Trump gave them a one time mulligan to bring the cash home, many companies took the opportunity to on shore cash....buy back stock to fatten their options....and did no investment. So much for the carrot, now its time for the stick.
And hogwash about the labor costs. WTF is the largest chip maker in the world building a mega factory in the US, and we cant make phones?
All these clowns with the Apple stickers on the back of their cars, a foreign company.
Mercedes and BMW are more american than Apple.
This post was edited on 5/24/25 at 6:35 am
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