Trump is right about something! Made in USA counts for a lot

You probably rushed to dismiss it.  After all, in this globalized world it seems counterintuitive that Apple should produce iPhones entirely in the US.  Some would say impossible.  And it is Donald Trump saying it, the man is ridiculous almost 24/7.

Now think about it again.  Cost?  Yeah, sure it would be more expensive to produce in America but Apple has the margin to support it.    It would not be more expensive to the consumers.  And even these Tim Cook days of actually giving back to shareholders, it isn’t just about the stock market.  Apple stock has become a global “too big to fail” ticker, it’s price was never really connected to its performance much anyway.

Some say it is impossible to produce an iPhone entirely in the US.  So let me get this straight.  There are countries out there more advanced than America?  And this is OK with everyone?  Nobody else perceive a medium term threat in the situation?  It is true that no country actually produces an iPhone, it is simply a matter of assembly.  So why can a Mac pro be produced in America and not an iPhone?  Samsung might not seem much of a threat these days but that can quickly change.    You set up your whole supply chain somewhere else and pretty soon “somewhere else” is selling iPhone knock offs at a tenth of the price.    Furthermore they attract more customers on the back of their legitimate claim to be manufacturing or assembling iPhones.  Their countries learn how to produce such items in terms of all their processes, taxes, permits, government procedures and a million other little things we call “know how”.  You are greasing the way for anyone else to roll in and compete.

I know all this sounds very unliberal and unbusinesslike.  That is because we have been schooled to always assume that the free market is the best choice.  It usually is.  Abusing worker rights in China is not.  There is nothing liberal or free about what Apple has been doing (and continues to do) to squeeze its suppliers.  It didn’t join the move of “Made in Argentina” when Samsung and Blackberry did.  Apple doesn’t care about building long term relationships with any market in the world other than America.  Apple always treated its distributors like crap, was always secretive, has always decided from the top and bossed everyone else around.

Well there is no point running complex business analysis or logistics calculations on it.  It is a matter of soul.  What is Apple about?  If it is a truly global company, why does it act like a bunch of Californians with attitude who don’t care about anything?  Making iPhones in America won’t solve any problems.  It won’t make them worse either.

And it just might force the company to face up to the fact that it isn’t really sure what it is about anymore and how it connects to consumers.

 

 

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