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Thread: Trade Agreement Between US and China to Help Reduce Manufacturing Costs for Apple

  1. #1
    What's Jailbreak? Akshay Masand's Avatar
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    Default Trade Agreement Between US and China to Help Reduce Manufacturing Costs for Apple


    It has been reported by The Wall Street Journal that U.S. and China have reached an agreement where import taxes on electronic parts imported into the country will be removed. This will lower manufacturing costs for Apple, which is definitely a benefit. Currently, China charges import taxes on parts that get imported into the country for iPhone, iPad, and Macs assembling. These components get shipped in from other countries like Japan and Korea. Now, not only will Apple benefit from the deal, but other companies like HP and Microsoft will as well. According to The Wall Street Journal,

    Tuesday’s agreement between China and the U.S. clears a critical hurdle toward expanding the Information Technology Agreement, whose 78 members account for 97% of IT exports [...]

    If other member economies approve the pact as expected, the new agreement would boost tech companies in the U.S., Japan and Taiwan, among others. The agreement could cover $1 trillion in trade, according to U.S. estimates.
    As noted, the other 76 member countries for the I.T. Agreement need to also be on board for the agreement to take action. However, it is already expected for the remaining member countries to agree to this pact. The reason behind this whole ordeal is so that consumers can benefit from purchasing these products. If the deal goes through, then consumers should be seeing cheaper costs for these finished products and hopefully see them starting 2015. The goal is for this deal to finalize before the end of this year so benefits can take action beginning next year.

    Source: The Wall Street Journal
    Last edited by Akshay Masand; 2014-11-12 at 07:37 PM.

    Twitter: @AkshayMasand

  2. #2
    I wonder if they’ll pass on the savings?

  3. #3
    Quote Originally Posted by Ambi_Valence View Post
    I wonder if they’ll pass on the savings?
    Well based on apples price markups if they apply them in relation to the tax savings you should see about 300$ off of the current apple prices. However since they don't apply the markups in this fashion it should relate to Walmart style pricing. The new iPhone will now be 699.97 lol.

  4. #4
    Livin' the SPIDEY Life SpiderManAPV's Avatar
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    Quote Originally Posted by Darkflame View Post
    Well based on apples price markups if they apply them in relation to the tax savings you should see about 300$ off of the current apple prices. However since they don't apply the markups in this fashion it should relate to Walmart style pricing. The new iPhone will now be 699.97 lol.
    I think you're giving Walmart too much credit. The other day they had something on clearance for a higher price than it originally was.

    ......beware......
    Just your friendly neighborhood Spider-Man!

  5. #5
    Quote Originally Posted by Ambi_Valence View Post
    I wonder if they’ll pass on the savings?
    Hah! That is highly unlikely... There is so much demand for iDevices... Apple keeps increasing their margins every year.
    The MBP is so damn expensive... and now that the battery is super glued which Apple says it was done to "make the MBP slimmer"... In the Air, the battery is not super-glued and 3rd party (iFixit) replacements are easy, cost effective and durable... and yet the Air is slimmer. Wonder why Apple did not user super-glue there!
    There is no way to get the battery replaced unless you go to an Apple store and get it replaced by shelling out 199$ now. The earlier stand alone batteries were priced anywhere between 119-129$ in the Apple Store... sometimes Amazon had 99$ deals on the battery.

    Its ridiculous how the manufacturing cost of the iPhone 6 is somewhere under 250$ and the unlocked version starts from 700-750$.. as long as there is a high demand, the prices are not going to go down!

  6. #6
    I was being sarcastic.
    I thought my company was a ripoff and we add 53%, yes fifty three percent, to every job we do.

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