Reply to post: Re: For a guy that claims to be a "businessman"

Trump's new thought bubble: Make Apple manufacture in the USA

Sean Timarco Baggaley

Re: For a guy that claims to be a "businessman"

The one thing China does better than (almost) everybody else is scale. The US has nothing that can crank out products at the rate Foxconn's factories do.

It's not just about the assembly or cheap labour either, but the vast logistics chains that support those megafactories. There isn't anywhere in the US that could handle the sheer quantities of physical stuff that has to be shifted around to keep all those massive factories fed with raw materials, individual components (which are often also made in China), and so on, while all also coping with the finished products that have to be shipped out again. Some of China's container ports make even Rotterdam and the Port of Los Angeles look like tiny fishing villages by comparison.

Apple only build the Mac Pro in the US because it doesn't sell in anywhere like the vast numbers their other product lines do, nor did they ever expect it to do so. They only make them at all because it looks bad for their image if they show people around their own campus and reveal loads of boring Dell workstations being used instead of something shiny with an Apple logo on it. The Mac Pro isn't so much a workstation as a branding exercise.

The US (like the UK) has an economy based around intellectual property, not making physical products. Making stuff doesn't actually pay that well. This is why Apple, despite a big fall in share price lately, is still valued at over $500 bn. By comparison, Foxconn is worth a "mere" $87.3 bn. And they don't just make stuff for Apple.

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