iPhone 14, Domestic Manufacture, Free Trade, International Diplomacy & National Security

Apple charges between US$799 for a basic iPhone 14, to US$1599 for a top-of-the-line iPhone 14 Pro Max model.

That’s how much you’ll pay without carrier subsidies, which are typically tied to a service contract, but…

How much does Apple pay for it?

How much does it cost them to make it?

Japanese business newspaper Nihon Keizai Shimbun, and Fomalhaut Techno Solutions, a Tokyo-based mobile communications equipment analysis firm, collaborated to investigate and issued a report of their findings which were based upon disassembly of three models of the iPhone 14 series, and an estimated cost analysis of the hardware components.

Nihon Keizai Shimbun (Nihon sometimes also spelled Nippon), translated as “Japanese Economic Newspaper,” is Japan’s most widely respected daily business-oriented newspaper, with a total morning and evening circulation of 3.7 million.

iPhone 14 Pro Max

The report found that the total parts cost of Apple’s iPhone 14 Pro Max, their top-of-the-line model, costs about 20% more than last year’s iPhone 13. The iPhone 14 Pro series has few new features, and is powered by Apple’s A16 processor, which continues the company’s strategy of producing ultra-high performance products, yet prices in the US and elsewhere remain the same, thus ostensibly constricting, or compressing, profitability.

Since its 2018 introduction, iPhone’s flagship “Max” model has cost an extra US$400 to US$450.

Based upon their analysis, Fomalhaut estimated that the total parts price for the iPhone 14 Pro Max is approximately US$501, which is slightly US$60 more than last year’s iPhone 13 Pro Max model.

The cost increase in the iPhone 14 Pro series is primarily because of Apple’s “A16 Bionic” chip, which uses a state-of-the-art 4nm (nanometer) production process, currently only available from Taiwan Semiconductor Manufacturing Company Limited (TSMC), and Samsung Electronics.

Moves Protect Intellectual Property

Headquartered in Taiwan, TSMC is the world’s largest contract chip maker, a major Apple supplier, and is constructing a US$12 billion plant in Arizona near Phoenix. Governor Doug Ducey had initially visited Taiwan in 2017, and again in August 2020 for a 3-day trip, at which time TSMC announced their intention to build a $12B chip foundry in Arizona that year, and shortly thereafter began seeking subsidies. At the time of the announcement, TSMC speculated that construction would begin in 2024.

However, in August 2022, Governor Ducey made a brief construction progress report about TSMC’s Arizona facility, and recollecting his previously visits, stated in part that, “Just over two years later TSMC has completed construction for its main facility and continues to make excellent progress. Along with TSMC’s historic investment, roughly two dozen Taiwanese-based suppliers are finding Arizona is right for investment.”

TSMC broke ground on the project March 2021 and had a ceremonial “topping” celebration, a construction industry term meaning installation of the last beam, with 4000 attendees in July 2022. The property literally went from 1100 acres of tumbleweeds to factory shells in under six months.

But not only is the construction of TSMC’s Arizona facility a win-win for the United States, it also represents a prospective national security matter, because there have been rumblings that the Communist Chinese government could seize the Taiwanese facility.

Speaking in May 2022 at the Chongyang Institute for Financial Studies at Renmin University of China in Beijing, Chen Wenling, Chief Economist at the Communist Chinese government-run China Center for International Economic Exchanges told attendees that, “If the US and the West impose destructive sanctions on China like sanctions against Russia, we must recover Taiwan.”

Her remarks were alarming, and appeared to encourage Chinese military assault, and she warned the attendees that

New Threats Emerge In 2020

When Russia – our sworn enemy – decided that they wanted to influence the election, to cause Donald Trump to win… I mean… what do you say!?!

If it had been Hillary Clinton, I would’ve been against it.

But it wasn’t.

But the thing is, is that, the Russians have achieved what they wanted to do – and that is to get the President elected. And when you acknowledge that fact, you have to come to the conclusion that, for that reason, he is an illegitimate President regardless of how many Electoral College votes he got. And the Electoral College should be abolished. Because it was designed for a country 250 years ago.

And the problem with that – not bashing the Constitution – but the idea is, “it’s time for a change,” because right now, when you can communicate with someone on the opposite side of the globe, when you can talk to someone in Hong Kong, when you can talk to someone in London, England, when you can talk to someone in Sydney, Australia, when you can talk with someone in Banff, Canada, when you can talk with someone in Switzerland, and in Mumbai, India, SIMULTANEOUSLY, and have a conference call, you KNOW that worldwide global instant communications has revolutionized the way that we are able to think about things. That is a transformation of UNPARALLELED proportion! When one person can have a voice and speak around the world – globally, in an instant – our forefathers never dreamed of anything like that. They certainly didn’t dream of an automobile. And they could not have dreamt of satellites. They certainly couldn’t have dreamt of rockets. They didn’t even have electricity, for heaven’s sake! And they came up with this idea of the Electoral College.

Why?

Because communications was not instant n 1776, or in 1787 when the Constitutional Convention was established. They had to wait WEEKS, or even MONTHS, before people could be able to hear about what was going on. And now, we can have it in an instant. You have it on your cell phone.

Look, the Communist Chinese government has now written a Social Media app called

Chinese Economic Slowdown is in the Making TRANSLATION: America is coming up!

As the Rota Fortuna – the wheel of fortune – goes, one side goes up, while the corresponding side goes down.

America’s turn is next.

We’re comin’ up!

—

Bears at the heart of the dragon

Global Insight
September 12, 2012 3:50 pm, By Jamil Anderlini in Tianjin

Among the corporate titans and global leaders attending the World Economic Forum in the eastern Chinese city of Tianjin this week a fascinating division appears to have formed.

In quiet conversations and background chats with Chinese officials and analysts about the state of things in China, the tone of despondency and cynicism was pervasive while the views of international attendees on China were generally bullish and upbeat.

Rota Fortuna – the Wheel of Fortune – Fortune and Her Wheel: Illustration from Vol. 1 of Boccaccio’s De Casibus Virorum Illustrium (On the Fates of Famous Men) (1467, Glasgow, Glasgow University LIbrary)

At one point, during