“Mexico is the China of the Americas”

· Andrew Orr · Link

Apple Mexican flag logo

Here’s another thing to put on your technology watch lists. Due to a combination of the economic consequences of the coronavirus and the trade war between the U.S. and China, many U.S. companies are moving their manufacturing out of China. Consulting firm Kearney publishes its Reshoring Index [PDF].

Kearney predicts companies “will be compelled to go much further in rethinking their sourcing strategies, (and) their entire supply chains.”

Amid other companies, Mexican manufacturing is one possible fork in Apple’s road, along with Vietnam. As Forbes states, the U.S. can’t compete with China on labor costs, and I bet few Western countries can. I don’t know what the cost is to manufacture in Mexico, but the country likely carries less risk than China.

Government Excludes Apple Watch From Tariffs

· Andrew Orr · News

The U.S. Trade Representative approved Apple’s request to exclude the Apple Watch from U.S. tariffs on imported Chinese goods.

The iOS 13.1 Beta and a Possible Link to Trump Tariffs

· Andrew Orr · Link

Charles Arthur believes that the reason we’re seeing iOS 13.1 betas already could be linked to Trump’s tariffs.

Apple’s management also knows it can just about find a win-win solution here. If 13.1 proceeds as if it were 13.0, then it will be ready roughly when the “normal” 13.0 would have been, roughly a week after the new iPhones are launched, but about a week before they go on sale. That means that it can be the “GM” when it’s announced.

I don’t buy his Occam’s Razor logic because that is about finding an explanation with the fewest assumptions, and not his stated “most rational explanation.” And his theory, although interesting nonetheless, makes more assumptions than the current explanation of “Apple is holding features for iOS 13.1 to make iOS 13.0 more stable.”

Trump Tweets Mac Pro Tariff Exemption Won't Happen

· Andrew Orr · Link

2019 Mac Pro

Apple had asked the White House for a Mac Pro tariff exemption, but President Trump tweeted today that it won’t happen.

Trump has said that exemptions are available only to companies that can demonstrate they had no other manufacturing option or show the tariffs would cause “severe economic harm.” In his Friday tweet, he again championed products made in the United States.

The tariffs are 25% on certain parts, which means that customers might be footing the bill.

Apple Watch and AirPods to Be Spared from Next Round of China Tariffs

· Bryan Chaffin · News

Apple Watch Series 4

Though originally covered in early drafts of a $200 billion escalation of President Donald Trump’s trade war with China, the product code covering these two Apple devices—as well as competing devices—will be exempted from tariffs.

Trump, Cook Have Dinner, Likely Discussed Tariffs

· Jeff Gamet · News

Apple CEO Tim Cook during Mac

Apple CEO Tim Cook had dinner with Donald Trump last Friday and there’s a good chance they discussed the the tariffs the White House is imposing on China.