The well-choreographed customs routine is part of a hidden bounty of perks, tax breaks and subsidies in China that supports the world’s biggest iPhone factory, according to confidential government records reviewed by The New York Times, as well as more than 100 interviews with factory workers, logistics handlers, truck drivers, tax specialists and current and former Apple executives. The package of sweeteners and incentives, worth billions of dollars, is central to the production of the iPhone, Apple’s best-selling and most profitable product.
Fascinating look at what the local Chinese governments do to entice Foxconn.
In one word: Totalitarian
Less totalitarian capitalist governments do the same sorts of things – Walmart subsidizes their employees by under paying them, coercing them on to government assistance. AMD gets per employee kick backs from government, etc. Just about every corporation gets special tax deals and kick backs, and states and countries compete to lower corporate taxes to attract big business to their state/country (or provide loop holes like in the US – US has a higher nominal corporate tax rate, but it’s effective rate is basically the same as anyone else’s).
The only difference between China and the US is who makes the decisions with regards to how resources are allocated (except military spending – always decided by gov). In China the governing groups make those decisions more often (though they are deferring to captains of industry more and more), in the US corporate heads make the decisions more often. But it’s basically the same system. They are both forms of capitalism.
Apple can’t exist without subsidies. They get USD400 per phone from carriers. No subsidies = no profits.
Ignorance doesn’t equal intelligence
Yeah that’s about it.
They only make their products and stores good to rub it in our face.
BTW Apple’s recent run of profitability started before the iPhone. I believe it was the iPod that got it going, and that had no subsidies at all.
The iPad didn’t have any competition when it was released. Sales peaked in 2011 after a mere five quarters. They have been in steep decline since then. Q3 2016 sales were less than half the 2011 peak.
You know there’s a difference between the letters ‘a’ and ‘o’, right?
(See, Thom? Curly!)
Edited 2017-01-01 22:38 UTC
Facts …
http://www.inc.com/salvador-rodriguez/apple-iphone-7-biggest-change…
Who needs those right? It’s the internet so we can add to fake news with fake facts, who can that hurt?
http://asia.nikkei.com/Business/Companies/Apple-to-slice-iPhone-pro…
Sales are moving in the wrong direction, not that Apple will lose profitability any time soon, but they aren’t what they used to be.
Here are some facts.
http://www.tech-thoughts.net/2012/05/proof-of-iphones-dependence-on…
Without carrier subsidies the iPhone would probably have a much, much smaller market share. [It is already totally irrelevant in the fast growing markets of the developing world].
The rest of Apple’s other products are going backwards.
54% subsidy on UK iPhones from Vodafone ? Tells me all I need to know about that “analysis”. The phones are paid for by the ridiculous monthly prices. If they are subsidised at all it is only by a few quid, and it has been that way since they started selling in the UK.
And now Foxconn is aggressively moving to more automated production lines and fully automated factories.
Those subsidies helped recruit, train & house 350,000 workers. How many will still be employed in iPhone City 10 years from now?
http://www.digitimes.com/news/a20161229PD206.html
In 10 years Foxconn will be selling their own phones and Apple will be bankrupt.