If need be, iPhone assembler Pegatron could expand U.S. production capabilities
by Alan Friedman / Jan 16, 2017, 11:22 AM
However, the chairman of Pegatron, TH Tung, said today that the company could increase its production in the U.S. by as much as three to five times if pushed. The factories are located in California and Indiana. Even with this large increase in output, one report published on Monday says that this increase would not be nearly enough to produce enough handsets to cover Apple's demands.
Trump, who will be inaugurated just four days, has floated the idea of a 35% tax on products made overseas but shipped into the U.S. The goal is to force U.S. companies to bring production, and thus jobs, back into the states. But this will only work if the cost of setting up new facilities in the U.S. is cheaper than simply paying the 35% tax.
Posts: 14967; Member since: Sep 25, 2013
Wanna force companies to bring manufacturing back to the US, remove tax breaks for offshore cash and raise the cost of importing to more than 35%. Make them pay dollar for dollar. In other words, whatever it cost to make the product overseas, charge 100% to bring it here.
posted on Jan 16, 2017, 11:29 AM 0
Posts: 7493; Member since: Feb 17, 2016
That would breach several laws, not to mention only push Apple further into EU hands rather than bringing them back.
posted on Jan 16, 2017, 11:37 AM 1
Posts: 2236; Member since: Jun 14, 2013
Good luck buying your $1500 Galaxy.
posted on Jan 16, 2017, 12:06 PM 1
Posts: 896; Member since: Jan 30, 2011
Trump should bring all his Trump Towers that are overseas back to the US.
posted on Jan 16, 2017, 12:37 PM 0
Posts: 474; Member since: Jul 04, 2015
The massive regulation, taxation, and overhead on companies from the US, State, and local governments makes production of anything noncompetitive with States that have little or none of the above. If were going to force all the burdensome rules and regs, then it's a good idea to punish those who skirt them and want to sell here. Otherwise, almost all manufacturing will eventually be gone.
posted on Jan 16, 2017, 11:36 AM 0
Posts: 1904; Member since: Mar 25, 2014
Yeah, and his 'tax' he wants to introduce is likely just going to be passed on to the consumers, and if they move to america, same thing. Will consumers pay for such a large hike? I doubt it, prices are already looking to straining a bit. A sudden large hike won't go over well in my book. Companies could split the cost, lower profits, slightly lessening hike to consumer. But yeah. All in all does not seem like a smart move.
posted on Jan 16, 2017, 11:54 AM 0
Posts: 1324; Member since: Aug 31, 2016
Cars are about to get really expensive if his tax comes to fruition. Roughly half the parts that go into American cars are imported, like the engines and transmissions in many cars. Say hello to a $40k Ford that used to cost $20k
posted on Jan 16, 2017, 3:11 PM 0
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