Apple will be fine in the long run.. its a bump on the road...
Hope the virus gets under control and brings some peace of mind to the people in China and elsewhere.
Welcome to the unacceptable face of US Capitalism. Americans made less over the last 20 years because they didn't want to do the work that other poor people in other countries would do at 0.001 of the US cost. As "Exceptional Americans" we just wanted to buy cheap goods - we sold our jobs for cheap toasters at Walmart. The US capitalist system failed working Americans.
I think you’re conflating free market capitalism with “capitalism”. We don’t have free market capitalism, we have a highly regulated economy and we have industries which are also highly regulated. Virtually every form of trade is regulated in the US. The difference between China and the US is the US Federal government does not own and direct large numbers of corporate interests, but there are a number of corporations which are powerful enough that they are able to limit competition with regulations. This is corporatism.
However, don’t for even one second pretend that there’s a problem with capitalism. Competition and capitalism are responsible for bringing more people out of poverty than any other system in world history.
That’s a variation of the “no true Scotsman” fallacy.
This is an important statement to make at this time, not just for financial reasons, but to acknowledge that Apple will be acting with appropriate caution in reopening its retail and manufacturing operations in China.
This just shows that Cook should have diversified the Apple Assembly supply chain years ago.
Your suggestion is that Apple should incur hundreds of billions in additional costs manufacturing outside of China for eternity, simply because of a once-in-a-lifetime event that might result in the loss of a few billion in net income.
In the end Apple’s supply chain is not magically different than all others it seems. Not to say that that is a knock towards Apple somehow, quite the opposite.
This is an important statement to make at this time, not just for financial reasons, but to acknowledge that Apple will be acting with appropriate caution in reopening its retail and manufacturing operations in China.
This just shows that Cook should have diversified the Apple Assembly supply chain years ago.
Yeah, I'm sure you fucking understand more than Cook about supply chain and diversification, right?
Love these super confident statements of "should have", especially when the person has zero qualifications, and referring to someone who have proven over and over that they are world class in what they do. You know absolutely nothing about how much Apple has looked into manufacturing diversification, nor the outcomes of those explorations. You know nothing about the supply chain requirements to begin with.
I love all the wizards of smart who insist that "THE" supply chain only exists in China and we have to accept the inevitable. WE BUILT THE DAMN THING! We rolled over and played dead... We gave them the plans for the factories, the communist government is a partner stealing our IP so we can buy stuff on the cheap while the supposed American based corporations and the corrupt business roundtable insist we charge full steam ahead. Wait, they make the medical supplies the pharma too! Here's what happens when we kill US jobs and manufacturing at our own peril...
I'll take "How to screw yourself to save a dollar" for $1,000 please Alex.
“China has the West by the Gonads . . .” Basically true, but we are mutually dependent.
In the US, we have indeed sold our jobs for cheap toasters at Walmart, but China greatly profited as well.
If China stopped selling any goods to the US we'd be in trouble - but so would China. That would be a last resort.
CAPITALISM has 'us' by the gonads. Capitalism will seek out the cheapest way to make and sell things. Capitalism doesn't care about national boundaries or being 'good citizens' ETC. Non skilled jobs will leave and will continue to leave more advanced countries. That is a truth to all advanced countries. If people really, REALLY want to change that there are ways. But it's so weird to see mostly hard-core free market folks, business folks complain about this. At the same time many conservatives hate 'government' interference and that is basically the only way to change this practice. Advanced economies will shed low skill jobs. There are solutions, but they require a little more thought that 'China has the west by the gonads...'
And the "shareholder class action" suit gets filed in 3...2...1...
Why? I’m a shareholder. And don’t plan to sue. Apple, like every other publicly traded company has ups and downs. The companies that don’t issue statements when they know things are not going well are much worse than those that do. IMO.
I’m glad so many here understand the complexities of running a company that brings in billions every three months. I know I don’t, and I know it’s not simple.
Nothing is easy. As others pointed out, optimization is always the goal for a company (or any other thing) that wants to survive. To do that you adapt to what is going on around you. Outsource to A, B, or C. Insource to D. It’s all math/physics with a vast number of dynamic variables. Some win, others don’t. The political climate is just another variable in the big picture. Vote local if you want any changes. Things trickle up. IMO.
Hopefully Apple will diversify more production out of China in future having learnt the lesson now. Saw this coming.
First SARS, now Covid-19. I’m sure there will be another until countries (not just China) change the way they treat their wildlife (or any animals for that matter)
Perhaps corporations like Apple should pressure the Chinese government for real change - after all the impact has been billions of $ and at least 1800 dead so far.
There's nearly 8 Billion humans on this planet. I think we'll be just fine for now.
If it were feasible to diversify the supply chain more, I'm certain Apple would have done so. Where else is there the workforce with similarly low cost and high quality?
There are plenty of people in the US ready to build high-quality iPhones, but the profit margin won't be as wide and the money hoarding shareholders won't be as happy, so China it is.
This is an important statement to make at this time, not just for financial reasons, but to acknowledge that Apple will be acting with appropriate caution in reopening its retail and manufacturing operations in China.
This just shows that Cook should have diversified the Apple Assembly supply chain years ago.
Fire Cook, right? Shove your anti-Cook drivel. If Cook didn't diversify then neither did any other manufacturer. Cook has long been acknowledged as the supply chain guru of gurus.
Get off your high horse. He has a valid point. Don’t put all your eggs in one basket. iPhones and Macs were assembled in China long before Cook took over.
The skill (in my case just luck) will be in choosing at what point in the expected share price dip to buy more AAPL.. They’ll eventually rise again unless of course there is a covid19 apocalypse. In which case the cash won’t be much use.
Cash would be of much more use than worthless stock.
China has the West by the gonads and they know it. Turns out that almost 100% of generic drugs are now manufactured in China too. So that cheap generic blood pressure pill or cholesterol pill you take is made in some Chinese factory by god knows who. There have been several recalls of a drug called Losartan (blood pressure) because of potential contamination by carcinogens, all made in China. Damn near everything you see at your local convenience store, your local department store, Walmart, comes from China. As entitled and materialistic as we are our lives would descend into chaos and depression if China chose to put their thumb on us. People here are already bitching about how long it takes to a pair of AirPods Pro.
Most generic drugs are made in India, not China. Indian made drugs are also contaminated and ineffective. When I have to take medicine, I always insist on genetics made by Teva Pharmaceuticals, an Israeli generic drug conglomerate. I have to pay about 50% more for Israeli made generics, but at least I know I’m getting quality product.
Comments
Amazing you're not running a Fortune 500 company.
Why would anyone here have that information?
Fixed a typo.
https://www.apple.com/newsroom/2019/09/apples-new-mac-pro-to-be-made-in-texas/
Yeah, I'm sure you fucking understand more than Cook about supply chain and diversification, right?
Love these super confident statements of "should have", especially when the person has zero qualifications, and referring to someone who have proven over and over that they are world class in what they do. You know absolutely nothing about how much Apple has looked into manufacturing diversification, nor the outcomes of those explorations. You know nothing about the supply chain requirements to begin with.
Wait, they make the medical supplies the pharma too!
Here's what happens when we kill US jobs and manufacturing at our own peril...
I'll take "How to screw yourself to save a dollar" for $1,000 please Alex.
Nothing is easy. As others pointed out, optimization is always the goal for a company (or any other thing) that wants to survive. To do that you adapt to what is going on around you. Outsource to A, B, or C. Insource to D. It’s all math/physics with a vast number of dynamic variables. Some win, others don’t. The political climate is just another variable in the big picture. Vote local if you want any changes. Things trickle up. IMO.
There's nearly 8 Billion humans on this planet. I think we'll be just fine for now.
There are plenty of people in the US ready to build high-quality iPhones, but the profit margin won't be as wide and the money hoarding shareholders won't be as happy, so China it is.