Apple Company & Stock Update
Apple Inc.
NASDAW:AAPL - Good stock to buy now?
Apple Inc. #TrumpAffect - how bad will it be?
To have complete transparency, I have Apple Inc. stock
Apple Inc. had a stock split last year
Taking the value from over USD $700 to around USD $130 with a five to one stock replace system.
This was the first part leading to a larger problem
The initial data suggested this would be a fair trade, that was not the case.
Investors quickly realised the seven to one stock replace system had been replaced with a five to one stock replace systems, meaning we lost quite a lot of money.
This is great if you had sold your stocks
Just buy more stocks and make even more money
This was not good for the investors who kept their shares.
The Fall Out
The, somewhat nuclear, fall out has been very bad for investors.
Losses of 8% to 20% have been seen across the board.
The stock split has damaged the stock value for almost a year and there is little sign of the company coming back from this in the first half of 2016.
Alphabet Inc. (Google Inc. Parent) is now, at time of writing this article, more valuable than Apple Inc.
This was a huge blow for investors
The investors lost more money with Apple Inc. stock plummeting again to as low as USD $90
The stock price has not been rallying for the last few weeks; it has been rather turbulent
Apple Inc. Future
1Q2016 to 2Q2016
Apple Inc. needs a strong first quarter with an increase in sales in China.
This will not be easy with China's economy alarmingly rapidly losing complete control and spiralling into oblivion. A slight exaggeration; however, the slide has been so severe they have been ceasing trading rather frequently.
Another issue arises with the way China will not allow foreign (The United States of America or other) companies to own companies based in China
Foxconn is not owned by Apple Inc. nor is Pegatron, another Apple Inc. supplier, which was switched to away from Foxconn.
There is another reason for Apple Inc. not purchasing Foxconn:
Apple Inc. are able to change and switch suppliers for any product they wish - they have a certain degree of freedom
There is another side to this:
If Apple Inc. were to buy Foxconn or Pegatron, they would be able to make either company manufacture the Apple Inc. products in the way they would like for optimisation
Apple Inc. would have an extra income as Foxconn produce for many other manufacturers
Apple Inc. is trying to bring more manufacturing back to The United States of America, this started in 2013 with the manufacturing of the Mac Pro.
Donald Trump, boo if you wish - cheer if you must, has proposed passing the law of instructing Apple Inc. to migrate all of its manufacturing back to The United States of America.
Will this work?
Apple Inc. is a vastly powerful company which has been trying to bring more of its operations to The United States of America and The United Kingdom.
Apple Inc. is paying tax in the UK - a very important milestone for Ireland based tax dodging within Europe
What can Apple Inc. do to not have to move production out of China?
Hope Trump is not voted in during the elections!
Is hope good enough?
This is not a political article. What can Apple Inc. do?
They could bring some of the advanced manufacturing back to The United States of America.
Apple Inc. has been working hard on two campuses, their Cupertino Campus 2 (the spaceship) and their Austin, Texas, offices.
Austin is rising as a great technology startup city.
House and building prices are rising quite significantly.
Could Apple Inc. bring back all of the manufacturing?
Simple answer: YES
Detailed answer: YES, but it would be rather difficult and very costly
Migration of entire systems would take time and cost a great deal.
Donald Trump would have to make an incentive for Apple Inc. to bring back manufacturing.
As Apple Inc. does not own Foxconn, it does not have the issue of moving vast amounts of equipment. It would be able to develop bleeding edge manufacturing techniques and deploy much faster than China can in many cases.
Running your own manufacturing arm is not an easy prospect. It takes great knowledge and experience to build an efficient and effective semi-automated mass production line.
Should Apple Inc. Bring Manufacturing Back to The United States of America?
Not all of the manufacturing should be brought back to The United States of America
Some of the manufacturing should return to The United States of America
The 2013 Mac Pro is already manufactured in The United States of America
I, MaX, would suggest Apple Inc. should invest in a new production line for advanced systems where the entire MacBook range can be assembled