Re:Apple plans to spend $1B to support advanced manufacturin...
by thevtm on Thursday May 04, 2017 @02:34PM
(#14267454)
Manufacture IPhones in US to sell in the US.
Manufacture IPhones in China to sell to the rest of the world.
I bet that whats Apple is going to do.
Re:Apple plans to spend $1B to support advanced manufacturin...
by notlefthanded on Thursday May 04, 2017 @02:40PM
(#14267500)
That didn't work too well with blackberry in Argentina. It's kind of an extreme case, but there are parallels that can be drawn.
Re:Apple plans to spend $1B to support advanced manufacturin...
by bduerst on Thursday May 04, 2017 @03:30PM
(#14267925)
Here's a good podcast on how terrible it was:
http://www.npr.org/sections/money/2017/02/17/515850029/episo...
Even with the tariff incentives, the demand within the country wasn't enough to cover the economies of scale to keep manufacturing costs effective.
If we were to enact a tariff on foreign-made smartphones that was so high that they couldn't compete with domestically-made smartphones, the smartphone manufacturers in China and the rest of the far east would just sell their phones across the rest of the world, where they would out-compete our phones on price (initially). Our domestic manufacturers would have a smaller market and less access to materials and technical advancements, causing our phones to become inferior in quality as well as overpriced. And that would eventually hurt our people and our entire economy as well, because we won't be able to enjoy the technological advancements and lower-cost goods that the rest of the world is benefiting from.
The Soviet Union used to have a pretty self-contained, very protectionist economy, and the low-quality of their goods was a standing joke in the US for decades. That's what protectionism gets you if you're not the sole manufacturer or sole market for a product.