Donald Trump has never been a shrinking violet and now, the man who questioned the US President on the details of his birth and acceptance to college, has challenged Apple to move production of its devices to the US.
As CNET reports, the Billionaire business man told Fox News that it would “be a great thing” if Apple CEO Tim Cook could build the company’s plants in the US even if, he said, there is little motivating him to do so:
Maybe the incentive’s not there…but when 100 percent of Apple’s products–or virtually 100 percent–are made outside of this country, it’s pretty sad.
Outsourcing of manufacturing and other series occurred because firms believed that overseas employees were keen to carry out such jobs, while of course they demand lower salaries giving firms a huge cost benefit. It has since become standard for tech firms to have products assembled overseas, typically in Asia or Latin America, and companies like Foxconn carries order for Apple, Microsoft and others.
Equally, in the case of Asia, the advancement and efficiency of its supply chain, which is able to take new orders or alternative product designs in quick time, is a key factor for firms.
In spite of the establishment of outsourcing, Trump told Fox that Apple should try to bring things home:
We can do great things in this country…wouldn’t it be great if Apple actually made these products in the United States.
While Trump was a little short on providing tangible benefits to the move for Apple, the idea isn’t as ridiculous as demanding to see Obama’s birth certificate. Indeed, President Obama himself is in favour of bringing manufacturing jobs to the US and The Next Web‘s own Brad McCarty recently penned a compelling case for Apple to do so, amidst continued news of issues amongst its Chinese manufacturers.
The company has masses of cash and nearly $100 billion in liquid assets which McCarty believes gives it a “prime opportunity to simply do what’s right”. Motivated by PR and goodwill over profit, it could wholly revitalise one American city and bring a feel good factor to the country in the process.
McCarty explains that, assuming Apple would match the $1 billion that Foxconn just spent to develop a factory (which builds more than just Apple products), the rest of the financial details are feasible:
If Apple took $3.88 billion (5% of Apple’s current liquid $97.6 billion is $4.88 billion, less the $1 billion for building the plant) and focused on paying fair wages to Detroit workers, it could completely revitalize the city as it stands today. Assuming that Apple paid its workers an average of $20 per hour, 70,000 workers would cost the company $2.9 billion per year in salary. Factor in other costs of doing business and that remaining $3.88 billion would likely be gone in a year, but Apple is still turning profits, adding to the coffers.
President Obama put Trump in his place through an incredible series of jokes in a dinner speech last year, but Apple CEO Tim Cook is much less likely to be responding. Cook already ‘set the record straight’ with employees through a internal email and it remains to be seen whether he will preside over a changed approach to manufacturing.


















Trump and Dumb... well .... it is rhyming... there is something known as opportunity costs... forgetting basic fundamentals of doing biz... If Apple can garner more share of market from Samsung by outsourcing more .... then it makes sense... and earn more revenue for the company and country... at the end what do you want... quality work and good money or lots of cheap manual labour ?
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LikeVivlian Wozz
Or you can shove your spam, jagoff.
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LikeVivlian Wozz
Why is the "flag" option hidden most of the time?
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LikeThis coming from a man who bankrupted numerous companies and stiffed many on their due money all while retaining his own wealth...this man deserved no respect.
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LikeIf O'Bama was half the man Trump is, he would have produced the documents Trump asked for, instead of making jokes. Apple bringing a manufacturing plant to Detroit is another joke, though not one of O'Bama's. I'm an Apple fan, and the worst thing Apple could do for their business, is move into a town/state infested by union leftovers. If people want to rebuild Detroit, run the unions out! Then maybe Detroit would have a compelling argument for Apple to move in.
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LikeRobert C Martin He did produce the documents to Trump, then made jokes. Get your facts straight before you go off rambling like you know anything.
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LikeRobert C Martin
Yes, because people should take orders from random assholes who ask them to run around and "show their papers."
You need to grow a nut and learn to stand up for yourself. How do you live your life taking orders from anyone and everyone?
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LikeApple DOES make products in the United States: SOFTWARE. Unfortunately, Apple doesn't care about software anymore and is content to skim 30% from everyone else's work.
Regardless, no one should be giving Trump airtime after his insufferable campaign horseshit.
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LikeI agree with Jan, TNW is giving too much coverage to this issue.
To me it's obvious you guys don't know anything about running a business nor about researching a story. You quote the weakest lines from Brad's article where he naively assumes the cost of a worker is his/her hourly rate times number of hours worked. What about FICA and other payroll taxes and benefits? I don't know the real figures, but I'd guess they're an additional 25-65%. Or should Apple not provide healthcare here.
There was a good "This American Life" episode that went to expose the evil Apple was doing in China, but the end result was that Apple does a decent job of keeping out underage workers and provides wages and benefits that generally improve the quality of life for the people there.
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LikeOliver Humperdink While I agree that Apple's unlikely to move any of its overseas production to the US, I don't think we "give too much coverage to the issue". After all it is one that the US President himself is looking into. Given that Apple is a stand-out firm, why shouldn't its potential to give jobs back to the US be mused over?
Brad's post is theoretical with numbers. Feel free to disagree with the finer details if you so wish, but the overall point that Apple could invest back into the US is an interesting one.
For record, I find Trump to be a populist idiot.
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LikeWouldn't it be great if they Multi-Billionaire had just invested everything solely in companies that only/mostly produced everything in the U.S.
Oh... wait... he wouldn't have been a billionaire then in the first place......
Talking about the pot & the kettle.....
How about the mission of any company is to maximize profit. You do not do that by employing a far too overpaid workforce. That is why unless it is completely necessary all companies will outsource their workforce to countries with lower salaries.
Don't like that?
Then don't be pro-market economy.
It's a binary thing.
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LikeWhile I love TNW, this recent streak of "Apple move work to USA" articles is silly. Please read why it's a lot more complicated to move the production to USA than simply erecting a manufacturing plant and accepting a x% increase in the production price:
http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html
http://www.forbes.com/sites/timworstall/2012/01/29/the-apple-boycott-people-are-spouting-nonsense-about-chinese-manufacturing/
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LikeTim Cook better build jobs here in US for Apple devices. They have MORE than enough money. Screw China, they can make their own shit. Those communist bastards treating their people like shit.
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LikeMartin Le Take it easy. Chinese are just doing the job which is assigned by the World economy.
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