President Trump: Apple is a great company; should build big, beautiful plants in America

President Trump today delivered remarks in the White House Rose Garden following a meeting with congressional leaders that failed to break the impasse over border security funding to end the 14-day-old government shutdown.

President Trump confirmed that he told Democratic Leaders at a meeting today that the government shutdown could last months or years. He also admits that the meeting was “contentious,” but he also says it was “productive” and that talks would continue into the weekend to end the two-week-old government shutdown. During the remarks he said the U.S. President has the power to fund a border wall along the border with Mexico via a national emergency declaration.

Regarding Apple, the president said, “They’ve gone up hundreds of percent since I’m president. Apple was at a number that was incredible and they’re gonna be fine; Apple is a great company.”

“Don’t forget this: Apple makes their product in China,” he said. “I told Tim Cook who’s a friend of mine, who I like a lot: ‘Make your product in the United States. Build those big, beautiful plants that go on for miles, it seems. Build those plants in the United States.’ I like that even better. Apple makes it products in China. China is the biggest beneficiary of Apple, more than us because they build their product, mostly, in China. But now he’s investing $350 billion because of what we did with taxes and the incentives that we created in the United States… My focus in the United States. I want to get those companies to come back into the United States. I want Apple to make their iPhones and all of the great things that they make in the United States, and that’ll take place.”

On China, the president remarked, “I will tell you, China’s not doing well now and it put us in a very strong position. We are doing very well… I think we will make a deal with China. I really think they want to. I think they sort of have to. And I think we’re going to have a great relationship.”

President Trump’s remarks about Apple begin at the 53:43 mark:

Full video via C-CPAN here.

Apple CEO Tim Cook and U.S. President Donald Trump at tech summit in June
Apple CEO Tim Cook and U.S. President Donald Trump at tech summit in June 2017
MacDailyNews Note: Apple CEO Tim Cook’s recent comments on China:

If you look at our results, our shortfall is over 100% from iPhone and it’s primarily in greater China. And so as we look at what’s going on in China — it’s clear that the economy begins to slow there for the second half. And what I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy… I’ve had obviously many, many discussions [with the Trump administration] over the course of many months to be constructed and to give sort of my perspective on trade and the importance of it to the American economy as well. And I feel like I’m — that I’m being listened to in that respect. And so I’m actually encouraged by what I’ve heard most recently coming from the U.S. and from China and hopefully we’ll see some changes.Apple CEO Tim Cook, January 2, 2019

I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018

SEE ALSO:
Apple plans to add $350 billion to U.S. economy and create over 20,000 new jobs over next 5 years, pay $38 billion in repatriated taxes, the largest ever made – January 17, 2018

37 Comments

  1. Steve Jobs was right that manufacturing has left and isn’t coming back. However Apple could certainly bring back with their resources and deep pockets. Cheap labor and lack of unions in China makes it very difficult to make sense financially in my guess.

    1. Plus, Apple doesn’t make anything in China. They pay other companies to make them FOR them. Apple running their own factories in China would make even less sense than them running their OWN factories in the US. MUCH better idea by far to court Foxconn and other such companies to start scaling up here so that Apple and other companies don’t have to build a thing, just switch the contract from China to the US Subsidiary.

        1. Apple, by themselves, could not. Unless you think Tim Cook has godlike negotiation abilities. Look here for Foxconn’s current major customers.
          https://en.m.wikipedia.org/wiki/Foxconn

          If Apple said, “Build a plant in the US or else” Foxconn would say, “Thanks, but no thanks. We’ll just make more things for these other folks”. It’s true that Apple’s product volumes crowds out what a lot of competitors are able to get built. With Apple gone, they’d just up their production of other things.

          1. Wisconsin Foxconn plant will make sghitty TVs not iPhone. Get your head out of your ass, fucksdtain.

            They’ve already ruined the state with their pollution waivers and costing us $2 billion in unrecoverable concessions to these assholes.

          2. Wisconsin. Have you heard about it?

            Yes, Foxconn was getting a State subsidy of $4.1B, which works out to $230,000 per worker job.

            And they also promised 13,000 jobs … but the plans have since changed: instead of a Generation 10.5 LCD manufacturing plant, Foxconn changed their plan to build only a Gen 6 plant … and It looks like WI would be lucky if they get 1/3rd of as many jobs (and lower paying ones too).

            As such, that $230K per employee subsidy is closer to $1M/employee. At $50K/yr job, that means at least 20 years until break-even…if those jobs last that long, etc.

            All of which illustrates why Gov. Scott Walker was defeated back in November … he leaves office today.

  2. Trump may be wrong about a lot but he’s right on this.

    It is BAD opera ions to put all your manufacturing into one communist basket. There should be at least one US factory that can make at least some small percentage of phones. And perhaps one in India and one in South America, and one in Eastern Europe. That is just basic business 101.

    Right now apple can be completely shut down, all iPhone manufacturing stopped with one patent injunction in China that goes against them (either on the merits or by bad judgement or by China inc politically motivating that judgement).

    It is insane that apple doesn’t have a plan B manufacturing plant and at least one in the US.

    Tim Cook sucks at basic operations because of this.

    1. “one in South America”

      there is/was one in Brazil. It fell apart.
      As the manager said ” when the workers hear the word soccer they stop working to watch TV ‘ (I’m not making this up. Go Google the story).

      there used to be a Mac manufacturing facility in Ireland that built iMacs, today Apple can’t successfully build a Green Server Farm there due to objections (Go google that as well)

      there’s plenty of cheaper labour places than China like Africa, India etc but there’s a reasons why companies choose China…

      Mac were originally made in USA . Steve Jobs tried to build NEXT computers in California, they were so expensive not even Government departments or Universities would buy them. Jobs hired Cook from Compaq-IBM to move Apple manufacturing to Asia as all the PC guys built there and the USA public lapped up Cheap Windows PCs. Practically ZERO Americans wanted to buy more expensive Macs or Next machines because they ‘were made in USA’. (At end of day Cost will always trump patriotism)

      More expensive USA iPhones etc would only work if the USA government puts big tariffs on Samsung, Google Pixel etc (Samsung manufactures in China as well as Korea).

      1. Next factory was really good. Pretty fully automated. Canon bought it. It didn’t cause the high prices, the components did and lack of sales did it in.

        Further, in some parts of the us labor is now competitive with some of the lower cost companies.

        Also, robotics have come a long way where a lot more can be automated. Their iPhone disassembly robots show that.

        Last, they don’t have to make them all here. Start with a goal of 3%. Work up, learn and iterate from there.

        1. ” the components did and lack of sales did it in.”

          components? OK, so where did those components come from and why didn’t component pricing affect Windows PCs that came from Asia?
          — if Next components came from Asia like Win PCs then it wouldn’t have affected cost
          — if Next components were expensive because they were made in USA then it proves my point.

          “lack of sales did it in”
          So why was there lack of sales ? You had Steve Jobs , probably the world’s best salesman selling them… Every article on NEXT failure points to high pricing as biggest culprit.

    2. Apple doesn’t even have a plan A. They contract out to other companies. They manufacture ziltch. There is one plant in the US but it makes the ever low volume Pro model… and again, that’s contracted work (by Flextronics).

      There is zero chance of Apple “making” anything anywhere. The better bet would be to get the companies that DO make things to set up shop in the US.

    1. He was simply making shit up because he doesn’t know what he’s talking about.

      Trump also said China benefits from Apple more than the United States does. So unbelievably wrong. Apple’s assembly costs in China are quite small compared to what they keep here and spend in Northern California, and all across the US and the western economies. It’s not even close.

      1. Trump also promised that Mexico would pay the wall… instead, he takes everyone hostage to brag to his followers.
        As if dealers and gangsters were all foreigners…

  3. How many people want a 500,000 population factory city in their backyard again?

    Would any city in the USA agree to that? Even without significant tax breaks? Even economically depressed/needy places like Detroit?

    1. I don’t get this post. You’re opposed to people working and making a living in cities like Detroit. I’d guess many people would welcome a community where you had the benefits of full employment and opportunity.

      1. Ignore Synth, he is obviously killing way too many brain cells with whatever he is smoking.

        Modern production doesn’t benefit from 500k workers colocated. Efficiency is borne from right-sizing and specialization.

        Had he ever visited Detroit, Synth would know that it is a powerhouse city capable of building anything. The River Rouge complex, for example, currently pumps out the world’s best selling automobile. At a time before modern manufacturing, it employed 103,000 people. And those products are an order of magnitude more complicated than cell phones.

        1. You haven’t a clue how it looks inside Foxconn. The factories in China are in fact mega industrial complexes where people live, eat and work. Workers don’t leave the place, and it’s not Disneyland. There is no American that I have ever know that would like to live under those conditions. Not one. To understand why these work environments can take place in China, you would have to understand Chinese culture and history, not Detroit. Nothing you have ever seen here in the US compares to these industrial manufacturing plants. Nothing.

        2. Do a little research, read up on why Apple (and every other big tech firm) does production in China. They allow the manufacturing companies to build massive (100s of thousands of workers) factory cities complete with dormatories and worker housing. Huge concentrations of skilled workers, logistical efficiency—not so huge concentration of quality of life. And they are not exactly paying US minimum wage.

          Most cities in the USA would not be willing to make the changes necessary for such massive factory-cities.

          https://www.businessinsider.com/apple-iphone-factory-foxconn-china-photos-tour-2018-5

          1. Good Point. Just acquiring the land alone would be prohibitively expensive. And, in the case of Foxconn, they depend on subsidiaries as well, which would also need approval for their own plot of land.

            American factories are capable of producing 8 to 10 million cars annually. China turned out 28,226,616 in 2017. I don’t think most Americans even realize the scale of the monster production China has built up.

    1. I find it interesting that most of the people who keep posting that Apple is doomed because it doesn’t make all its products in America are also convinced that Apple is doomed because its products are too expensive!

  4. Well, Trump is an idiot if he believes Apple can be a successful company if it shifts all manufacturing to the U.S.: “I want Apple to make their iPhones and all of the great things that they make in the United States, and that’ll take place.”

    One analysis of Apple manufacturing the iPhone in the U.S. estimates it could cost nearly $2,000 to buy.

    http://www.aei.org/publication/how-much-would-an-all-american-iphone-cost-two-reports-say-2000/

    “In addition to not understanding the basic economic principles of international trade, the Mercantilist-in-Chief also apparently doesn’t understand very well the business principles and dynamics of international production activities that are driven by complex, intricate, cross-border, global supply and value chains that have taken decades to develop. And it’s those global supply chains that are at work with the ultimate goal of producing products most efficiently to provide maximum value for global consumers. The Apple iPhone is a perfect example of a globally produced product for global consumers, with two-thirds of those consumers living outside the USA.

    Apple, Inc. has a responsibility to its shareholders and consumers to produce and sell its products at the lowest price in a hyper-competitive global marketplace. Large multi-national corporations like Apple, although many are headquartered in the USA, operate in global marketplaces for inputs, parts, production, and sales and have to operate with a global mindset to be competitive and remain in business. To force those global companies like Apple to operate within Trump’s nationalistic and mercantilist view of the global economy is a sure formula for impoverishing America and its multi-national corporations, not a formula for any kind of American greatness.”

  5. Trump further embarrasses his administration:

    with no kitchen staff on duty, the White House served NCAA Football champions fast food:

    https://www.reuters.com/article/us-usa-shutdown-trump-burgers/burgers-by-candlelight-trump-lays-out-fast-food-for-college-football-champs-idUSKCN1P900X

    What a putz. Trump tells everyone how great America is, that everything built there is better, but he can’t even maintain staffing in the White House kitchen. A new low for American politics — THIS is the idiot that 40% of Americans mistakenly voted for. Talk about buyers remorse. The damage inflicted by the orange buffoon just keeps getting worse.

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