Two high tech giants, Foxconn and Apple, are considering a deal to build a panel factory in the United States at a cost of about $7 billion and could create between 30,000 and 50,000 jobs. Chairman Terry Gou of Foxconn said that an investment by Foxconn’s Sharp division will depend on the terms negotiated for the deal at the state and federal levels.
The announcement of the deal comes close on the heels of President Donald Trump’s inaugural address in which the new president promised to make “America First” as the backbone of his policies leading the nation. Trump stated in his speech: “We will follow two simple rules: buy American and hire American.”
One of Trump’s campaign promises was to try and persuade Apple to bring the manufacture of iPhones to US shores. Trump said that he was optimistic that Tim Cook, CEO of Apple, had his “eyes open” to the possibility. Foxconn is the biggest producer of iPhones.
Gou said that Trump-style protectionism was inevitable, but he is unsure how Americans will feel about spending hundreds of dollars more for a phone that does not work any better than a less expensive model that was made overseas.
Gou vowed to increase his investments in China. Apple is also dependent on China, not just for production, but also for sales. Last year China made up 22 percent of Apple’s total revenue, some $46.4 billion.
Ready to upgrade your iPhone? Why not save yourself some time and trouble and let Apple buy it back from you? This month Apple is planning on launching an in-store buy-back program with the express goal of helping people to upgrade to iPhone 5, and maybe even buy some cool accessories they might not have thought of buying before.
How does this program benefit Apple? Let us count the ways:
• An almost bottomless source of not-too-used phones which can help fill a growing overseas market. As Western markets become loaded with iPhones the Asian and other markets become a more important source of revenue for Apple.
• There is already a recycling option for Apple customers through their web site, but offering customers a trade-in option for immediate credit towards a new phone gets them into the stores, where the goodies therein are almost irresistible. This makes already quite loyal Apple customers even more loyal.
• Apple also believes the program will benefit their customers in terms of convenience if not financial. It is simpler to just march into an Apple outlet and get a good price than to go through the trouble of selling in one of the thriving second hand markets for electronic devices, such as BuyMyTronics, Gazelle and Glyde, although there is small chance Apple will outbid the open market.
This clever program should get Apple a lot of gently used phones to sell in the East, while at the same time keeping their customers close at heel with a trade-in program that only offers credit in their stores. Apple certainly has no intention of giving today’s Apple owners a chance to become tomorrow’s Galaxy groupies.
In order to win back some market share from the less expensive smartphones running Android software, Apple will be introducing yet another iPhone this coming summer.
The launching season for iPhone, at least the last two models, has been in the fall, but consumers can expect a newer and less expensive iPhone appearing relatively soon.
According to the Wall Street Journal the target market for this new Apple product is developing countries where the high price of iPhone has directed people to the less expensive Android-running smartphones.
It is Apple’s company policy not to discuss future products before their launch events. Apple execs emphasize consistently that it is Apple’s goal to make the best products and not necessarily the cheapest.
The WSJ added that Apple is ready to begin production of their latest addition to the iPhone line within the next three months.
At the end of each year Google releases a list of which search terms garnered the most numbers in
a variety of different categories during the previous twelve months. In the top ten list of terms with the fastest growth in technology, the top six were all related to Apple, including “iCloud,” “Osx Lion” and “iPad 2.” In the eighth position was the term “Steve Jobs.”
Rebecca Black Most Searched Term Overall
On the overall top 10 list, “Google+” came in second place. Amazingly, the only search term growing faster than “Google +” was the search for “Rebecca Black” nabbing first place, proving that ‘most’ is not always ‘best.’ Apple took control here as well; with three of the top ten spots, including “iPhone 5” taking sixth place, and “Steve Jobs” in ninth place. “iPad 2” made it into the top ten at tenth place.
Kindle Fire Most Searched for Gadget
The list of top ten fastest growing searches in the gadget category was a better representation of what really happened this past year: Getting the gold was “Kindle Fire,” while “iPhone 4S” was the second place finisher. Also placing in the top ten list for gadgets were, “Sidekick 4g,” “HP Touchpad,” “HTC Inspire,” “Palm Pre 3,” and the “HTC Thunderbolt.” These are the electronic toys that fueled the minds of consumers and filled the pockets of the electronics industry this past year.
The new iPhone 5 is set to make its debut with Sprint Nextel by mid-October. Sprint’s stock recovered from near collapse on the news. In the last year Sprint’s stock prices have been halved and so the news of iPhone 5 sales going through it has enhanced its stock valuation. The question of how this affects the larger tech market will remain to be seen.
Apple and China
Apple may be able to do what Google couldn’t and that is break into the Chinese market. Apple is currently in talks with China Mobile (CHA) and China Telecom (CHL). These carriers would open Apple to the huge Chinese market that increase the companies worth exponentially. Apple is currently trading at 374.35 per share. The deal will also help China Telecom. The company headed, by CEO Wang Xiaochu saw it’s profits rise 8% in the first half and the iPhone should increase them even more.