Two entirely different approaches to impending Tariffs. Apple will invest 500 billion in US / Texas mfg, while Cisco will continue unchanged.
Will be interesting to see which approach works out.
Thoughts?
12 replies (most recent on top)
Wicked and greedy.
I hear this cr-p a lot from people who happily accept six digit salaries and produce nothing of value. How do you think Cisco can afford to keep so many worthless people employed at those salaries? If he were greedy he'd fix development and pocket the billions each year wasted on bug fixing.
Chuck is an incompetent WEF schill. Completely incompetent elitest puppet. Wicked and greedy. Very wicked human.
are people just figuring out the Cisco is a cost-controls company?
Apple grows the top line
Cisco manages the bottom line
Smart on Apple’s part
$500B isn't much more than one year's revenue for Apple yet over 9 for Cisco. The claim is to build AI servers initially being released in 2026 which dovetails with earlier announcements about Apple and Broadcom working together to design AI chips with the same release date. I don't see how they spend $500B on the manufacturing side in only four years so I'm betting a lot of that money will go to actually building and operating data centers with the servers they'll build. Issues like bandwidth, latency, and reliability of services justify building out in the same country as the clients they'll serve, so US data center build outs would have happened without tariffs. With no batteries, displays, and other specialty items they aren't taking on a bunch of risk from their current hardware product lines.
Cisco's core hardware has moved further up the routing/switching/WiFi stack to maintain margins and that means relatively low volume. I recall reading that nearly half its revenue is now subscriptions further reducing the potential hardware Cisco could profitably manufacture in the US due to a lack of scale. Using the scale of revenue from Apple Cisco would have to spend more than two Spunks and have to learn how to manufacture on the fly rather than rely on far more efficient offshore manufacturers. Their best option which doesn't yet (or possibly ever) exist is to use excess capacity from existing top notch American manufacturers.
At the moment tariffs en masse are a threat more than a reality. People who lost it over the cost of eggs are suddenly going to be paying a significant part of 25% more for cars, electronics, appliances, etc... because the ramp time to build everything here is going to be more than four years. The midterm elections are less than two years away and the few in the middle who determine the outcome chose based on "I don't like things the way they are and I don't know or care if the other side will make things worse, it'll be different" may very well drive things in another direction.
Most of the those will buy 5$ million gold cards soon..
Apple is not making iPhones in the US. That will stay in Guanzhou/Foxconn. Likely a political stunt that they investing in an "AI data center" in the US. If the AI gold rush fails in 5 years, it is going to be very interesting to see all these mothballed data centers with outdated servers and Nvidia GPUs doing nothing. A little like NYC commercial real estate or those "Big Data" farms everyone built 7 years ago.
One will win, the other will regret their decision.
Multiple iPhone owners today noticed a pronunciation processing issue that causes the word "Trump" to momentarily show up when using dictation to send a message with the word "racist."
Cisco is investing in India. They dispise the USA.
More curry !! yay!!
Cisco is investing in India. They dispise the USA.
Apple is mfg'ng very low volume product in USA.. similar to 5nm chip building in Arizona(while building 3nm and future 2nm elsewhere)... seems like a political stunt... i could be wrong.