4.2 billion, huh. That's the peak of a 32-bit integer. I wonder if that happens to be the reason Apple has moved to a 64-bit SoC?
In all seriousness, I'd love to say, "Apple should suck it up and move production here -anyway-, given it has like $100 billion in the bank!", but the sad reality is, only a fraction of what Apple would be spending over here would actually be going towards the American people in the form of jobs. Maybe the US government should offer a little more incentive for companies like Apple to stay here. I might be naive, but I'd like to think that if the terms were reasonable, Apple would much rather have its phones built inside of its home country vs. a foreign country, even if it costs a little bit more.
So, they just cut 1/4 of their marketing budget that makes people think their crap is actually special....
Have to love foreign slave labour!
Have to love wage slave labour!
You mean it would consumer 4 billion extra, since I'm sure apple would just add that to the cost of the device.
We need to cut down the red tape and allow businesses to survive here. It's pathetic that our lawmakers literally do not give a crap that we are sending billions away to other people's pockets when it can stay here at home. I just saw a few hundred people lose their IT jobs over to India a few months ago...We are skilled and educated, and being robbed of our jobs.
I found this tidbit to be the most interesting part of the article.
" the company's current tax rate of 2 percent,"
BTW,Samsung doesn't make their phones in South Korea either.
Agree with SmogHog ; the 2 % tax rate (nota bene, that's the tax rate that Apple pays in the US on foreign sales of its products which are manufactured abroad) is the real story, as a longer quote from the Forbes' article makes clear :
«Apple’s profits for the 9 months ending in June 2013 were $29.5 billion and $6.9 billion in that third quarter. A straight line projection for the fourth quarter being the same as the third would give us annual profits of $36.5 billion. And 30% of this comes from those foreign sales of iPhones. Or around and about $11 billion of profits. Given the games that Apple plays with Ireland and so on those profits currently pay some 2% in corporate income tax. But if the iPhones were assembled in the US those games would no longer be possible and those profits would have to pay the full 35% US corporate income tax. 33% (35% minus 2%) of $11 billion is $3.6 billion.»
The calculated extra wage bill, based on what Motorola claims for the MotoX (~ 4USD per handset) is much less, about 600 million USD. And while FoxConn isn't exactly going broke overpaying its Chinese workers, if Tim Worstall is to be believed, real manufacturing wages in China as a whole have risen some 5-6 times since the turn of the millennium. Thus it's not a question of grossly underpaid foreign workers («slave labour») that is the main issue here, but rather that the US tax code permits Apple to get away with paying 2 % on profits on products that are both made and sold outside the US. Why is the US tax code written in that manner ? You tell me !...
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