Original title: 12799 yuan iPhone too expensive? If Apple listens to Trump, it will go up 20% again.
Apple launched three smartphones and a fourth-generation Apple watch at a new product launch in Cupertino, California, Tuesday, local time, the Voice of China News reported. On the eve of the much-watched launch of the new product, US President Trump's Twitter tweets on social networking sites caused widespread concern.
"Apple prices are likely to rise because we may impose large tariffs on imports," Trump wrote on Twitter 8. But there's a simple solution, no tariffs, and even a tax incentive: let Apple produce in the United States, not in other countries. Now start building new factories. "
Earlier, Apple complained online about the pressure of higher tariffs, and wrote to U.S. trade officials that the proposed tariffs would affect the prices of many Apple products. So what is the possibility of apple moving back under the pressure of Taxation? What is the purpose of the Trump administration if we insist on levying taxes and leaving local enterprises at home?
The president shouted: Apple home!
"If you want to pay less customs duties, Apple Corp should produce products in the United States." It's not known how many times President Trump has called on Apple to move the production line back to the United States, and Trump's tariff policy will force Apple into a dilemma.
Bank of America Merrill Lynch analyst Womsey Mohan recently released a report that in response to Trump's pressure, Apple may ask partners to transfer some of the Apple mobile phone assembly business back to the United States. But the price is a substantial increase in the price of mobile phones. Mohan is not optimistic about Apple moving the iPhone manufacturing business to the United States, mainly because of the higher labor costs in the United States. The wages of American workers are 2.6 times that of China. If Apple moves 100% of its final assembly business to the U.S., the price of the iPhone will need to rise by 20% to hedge the increased labor costs, which will inevitably affect sales. According to Chen Fengying, a researcher at the Institute of World Economics at the Chinese Academy of Modern International Relations, it is difficult for Apple to return to the United States as a whole, "because its industrial chain is already in China and Asia, and the cost will rise if it wants to go back."
Some analysts point out that perhaps Trump's calculation is to have Apple convince its core supply chain vendors to move to the United States to build factories together. But this idea is naive. At present, 350 of Apple's 769 suppliers are from China. The relationship between Apple and its suppliers is a partnership, not a subordinate relationship. The supply chain manufacturers do not necessarily agree to move the factory back to the United States. For example, its panel suppliers, Bourne Optics and Lance Technologies, are two companies that can meet Apple's high standards globally, and are unlikely to follow suit in the United States, where production costs are enormous, labor costs are high, and voice power is reduced by over-reliance on Apple.
Not just Apple, Fortune magazine website reported on the 10th that Trump on the 9th called on Ford to move a small car production line back to the United States. In response, Mike Levine, Ford's North American product media manager, said it would not be profitable to produce the model in the United States because the U.S. is expected to sell less than 50,000 vehicles annually.
What is the purpose of the Trump administration if we insist on levying taxes and leaving local enterprises at home? "If you come back, I'll give you a tax cut. If you don't come back, I'll levy your tax," Chen Fengying said in an interview with Voice of China. The result is to create jobs in the United States and create jobs for blue collar workers in the United States. So I think Trump's intention is very clear, to be "the greatest in the United States". In principle, this dream may be difficult to achieve under globalization, but he will act arbitrarily. "
More and more enterprises complain.
Commentary article pointed out that since Trump escalated the trade war with China and Canada and other allies, not a large number of manufacturing returned to the United States. On the contrary, more and more enterprises complain about tariffs, raise commodity prices and compress their profit margins. The overwhelming majority of U.S. business representatives in their last day of the U.S. Trade Representative's office hearing on tariffs imposed on $200 billion of Chinese imports to the United States called for no tariffs, saying they would hit U.S. businesses'competitiveness, employment and innovation, and ultimately hurt the United States. Consumer interests.
Julia Hughes, president of the American Fashion Industry Association, said: "This is the era of globalization. The idea that protectionism and tariffs can protect American manufacturing is hurting us, because there are Chinese products in every aspect of American manufacturing, and this is what you want to convey to Trun at the hearing. The information of the general government, we need to find another way to win mutual benefit. "
Although as many as 95% of the 358 delegates who participated in the six-day on-site hearing were "asking for release" and opposed to tax increases, the same was true of the previous two rounds of hearings. According to the American media, "you can't wake a sleeping person." In this regard, Chen Fengying said that Trump has recognized that globalization is not good for the United States, and in the hearing, "Made in China" was widely praised by the United States industry, "good product quality" and "mature manufacturing technology" are the common words in the speakers. The recognition of the status of "Made in China" products and supply chains by American consumers and industry reflects the complementarity and dependence of Sino-US economy.
Chen Fengying told China's voice: "the goods imported from China are hard to compare with other countries. One is our mature foreign trade, the other is our manufacturing capacity, the most critical of our service shipping, our logistics has been very good, so it is natural for enterprises to create profits and profits. The most important thing is that I think it also lowers inflation. Good and inexpensive commodities solve a large part of the low-income group's consumption and give them a very good life.
Made in China has helped American consumers save considerable living expenses, helped American businesses achieve better allocation and greater profits, and created millions of jobs for the U.S. economy, according to a report released by the U.S. -China Trade Commission. These are the true portrayal of mutually beneficial and win-win economic and trade relations between China and the United States.
Reporter: Li Simo
Waonews is a news media from China, with hundreds of translations, rolling updates China News, hoping to get the likes of foreign netizens