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Here's how it plays out in a protectionist world. Let's say the US government bans smartphone imports and forces manufacturers to set-up shop in the US. What Ap
by dmode 10y ago
Here's how it plays out in a protectionist world. Let's say the US government bans smartphone imports and forces manufacturers to set-up shop in the US. What Apple would do then, they would heavily invest in automation. So the number of jobs it could create here won't be at the same scale as in India. Then to maintain the same margins as the current iPhone, Apple will raise their prices. Consumers would probably still buy those phones, but the rates of upgrades and new phone purchase would dramatically reduce. That will mean Apple will not require all the retail locations they have now or the exhaustive supply chain and shipping network. Leading to loss of jobs in those areas. In addition, not all manufacturers can compete at that price point, as consumers are simply not ready to pay that much money for HTC. Which means there will be a gradual move towards monopoly and ultimately Apple and Samsung will be the only players left in the smartphone market with no incentive to innovate but all the incentives to bring their cost down. This is exactly how it played out in India with Hindustan Motors and Maruti being the only two car manufacturers.
- cmdrfred 10y agoIf you break down where the parts of a iPhone is made. You have some relatively high wage nations in there. I'd like to see a breakdown of how much of the price of the iPhone actually ends up in the pockets of workers. I'd wager like most other goods it's fractional compared to the cost of materials, taxes and regulatory compliance. I suspect making products overseas is more to do with environmental and labor regulations than wages.