>> WELCOME
>> BACK TO GENERAL BUSINESS
EVERYBODY APPLE ANNOUNCING IT
WILL BREAK GROUND ON ITS NEW
AUSTIN TEXAS
CAMPUS WHERE CEO TIM COOK WILL
GIVE PRESIDENT TRUMP AND
TREASURY SECRETARY STEVE
MNUCHIN A
PERSONAL TOUR OF APPLE'S MAC
PRO MANUFACTURING FACILITY,
IT'S ALL HAVE HERE TODAY ON
THIS WEDNESDAY IN THE U S
APPLE PUSHING FOR TARIFF
EXEMPTIONS AS THE U S CHINA
TRADE WAR
DRAGS ON NOW NEARLY 2 YEARS
RUSSELL IS POLICY EDITOR AT THE
VERGE HERE WITH US SHOCK.
ALL ABOUT APPLE'S VISIT WITH
HIM FOR WITH TRUMP THE OTHER
WAY AROUND LOOK THEY THE 2 HAVE
DEFINITELY GOTTEN CLOSER WE HAD
A GUEST ON THIS MORNING WHO
CALLED THE BEST EASE.
>> I MEAN THAT THE RIGHT WAY TO
LOOK AT
THEIR RELATIONSHIP.
>> I THINK TRUMP HAS A LOT OF
THESE KIND OF TRANSACTIONAL
RELATIONSHIPS WHERE WHAT HE
REALLY WANTS IS FOR YOU TO SAY
GOOD THINGS ABOUT HIM AND FOR
HIM TO SORT OF TALK ABOUT YOU
IN A WAY THAT MAKES HIM LOOK
GOOD AND IF YOU ALLOW THAT AND
SORT OF PLAY ALONG WITH
THE GAME. THERE'S OFTEN A LOT
OF THE DAY THEY'RE SORT OF YOU
KNOW HE
WE'LL GO OUT OF HIS WAY TO
CARVE OUT FOR YOU AND I THINK
THAT'S KIND OF WHAT WE SEE
HAPPENING WITH APPLE. WELL
LET'S DIVE INTO THIS. THIS MAC
PRO FACILITY. WHAT EXACTLY IS
IT DOING AND IS IT.
>> TRULY A RETURN TO
MANUFACTURE IN THE
UNITED STATES OR OR OR A LITTLE
TASTE OF MEAT PACKING UNITED
STATES PROBLEM YET.
>> SO I WOULD SAY THE NUMBER
ONE
THING IS AND THIS IS EASY TO
GET CONFUSED ABOUT BECAUSE IN
SOME WAYS TRUMP KEEPS MASHING
TO US. APPLE IS BUILDING A
CAMPUS WHERE THERE'S GOING TO
BE
SORT OF OFFICES FOR PEOPLE TO
WORK ON MACK BOOKS AND KIND OF
THE WHITE COLLAR JOBS THAT WE
ASSOCIATE WITH APPLE. APPLE
DOESN'T RUN MANUFACTURING
PLANTS AND THE MANUFACTURING
PLANT THAT THEY'RE TOO
POURING RIGHT NOW HAS BEEN
MANUFACTURING APPLE PRODUCTS
SINCE 2013, IT'S NOT OWNED BY
OUT IT'S NOT OWNED BY APPLE IS
OWNED BY FLEX FORMERLY
FLEXTRONICS THEY'RE ONE OF THE
BIGGEST US ELECTRONICS
MANUFACTURERS. BUT THERE'S NOT
A LOT
NEW THAT IS HAPPENING HERE SO I
THINK TRUMP HAS REALLY WANTED
AND WE SEEN THIS IN SPEECHES AS
FAR BACK AS LIKE JANUARY
LAST YEAR. HE SAID YOU KNOW, I
SAID ON THE CAMPAIGN TRAIL.
I WOULD GET APPLE MANUFACTURING
GOODS IN THE UNITED STATES GET
THE BUILDING FACTORIES HERE AND
LOOK THIS IS EXACTLY WHAT I'VE
DONE LOOK AT THIS FACTORY
AND ITS APPLE DOESN'T WANT TO
PUSH BACK BECAUSE THEY DON'T
WANT TO INCUR THE POLITICAL
COST BUT HE IS JUST NOT TELLING
THE TRUTH ABOUT
WHAT HAPPENED AND EVEN EVEN
TALKING ABOUT APPLE'S DIFFERENT
PRODUCTS THAT YET PRO IS A TINY
TINY OH, YEAH WE'RE SHUN OF
REVENUE AND PROFIT FOR THE
COMPANY, THIS IS NOT THE IPHONE
ABSOLUTELY ONE I THINK WE SEE
THAT WITH THE TARIFFS WHERE
THERE ACTUALLY
ARE TERROR SO ON THAT SORT OF
INPUT PARTS YOU KNOW THERE ARE
SOME BLING THE FINAL COMPUTER
IN TEXAS, WHICH IS A
BIG DEAL. BUT OF COURSE YOU
HAVE TO BRING IN ALL OF THESE
POWER SUPPLIES AND THE VARIOUS
COMPONENTS, THEY'RE PAYING
TARIFFS ON THOSE AND THEY WOULD
NOT BE PAYING TARIFFS
ON THOSE IF THEY ASSEMBLED IN
CHINA AND SHIP THE ENTIRE
COMPUTER TO THE U S IT'S SO IN
SOME SENSE THAT'S
A CONCERN BUT REALLY I MEAN IF
APPLE WANTED
TO MAKE THIS AS CHEAPLY AS IT
COULD THEY WOULD BE MAKING US
IN THE FIRST PLACE SO IT'S JUST
WHAT THEY REALLY CARE ABOUT IS
KEEPING TARIFFS OFF THE IPHONE
AND SO FAR THEY'VE BEEN ABLE TO
DO THAT.
>> RIGHT AND I THINK YOU KNOW
WE HAVE TO GIVE CREDIT WHERE
CREDIT IS DUE OR TIM COOK I
FEEL LIKE HAS NAVIGATED THIS
RELATIONSHIP WELL, BUT AT THE
SAME TIME APPLE IS IN A VERY
SPECIAL POSITION WHEREBY IT HAS
THE LUXURY OF BEING VERY
IMPORTANT TO BOTH SIDES OF THE
TRADE WAR VOTE TO US
AND IN CHINA, HOW IS APPLE
TRYING TO LEVERAGE THIS ALSO TO
THE BENEFIT AND ARE THEY
GETTING ANYTHING DONE ON BEHALF
OF THE LARGER INDUSTRY.
>> I THINK APPLE IS IN IT
FOR APPLE, I MEAN THIS IS SORT
OF HOW WE SEE COMPANIES ACTING
GENERALLY ALL.
I DON'T KNOW I MEAN IT IS
UNCLEAR TO ME HONESTLY WHAT
WILL HAPPEN IN THE FUTURE WITH
A TRADE WAR, IT'S
VERY CHAOTIC. WE STILL COULD
SEE TARIFFS PUT ON MACBOOKS AND
IPHONES THOSE HAVE BEEN
PROPOSED THERE SORT OF
DANGLING SORT OF HANGING OVER
THE FUTURE OF APPLE'S BUSINESS.
I THINK TRUMP IS DOING WELL
VARIOUS PEOPLE IN THE TRUMP
ADMINISTRATION ARE DOING THEIR
BEST TO PREVENT THAT, BUT WE
COULD SEE IT GOING THAT
DIRECTION I GUESS WHAT I'M
SAYING IS COVER
THE SCENE.
>> OH IT WOULD BE THE SAME
STORY I MEAN TIM COOK WILL HAVE
A MUCH TOUGHER JOB RIGHT SO HE
ACTUALLY OF BEING RIGHT NOW
THE LEAD OF APPLE AS THE LEADER
OF APPLE TO BE ABLE TO DO WHAT
HE'S DOING.
>> WELL I DON'T REALLY YET.
HE'S ALSO NOT
THE SCENE OF GOOGLE OR FACEBOOK
I MEAN WE'VE SEEN THIS KIND OF
POLITICAL ENGAGEMENT BE REALLY
REALLY DICEY FOR TECH COMPANIES
GENERALLY WHERE PEOPLE SORT OF
YOU KNOW THEY GET HAULED IN
FRONT OF CONGRESS AND YELLED AT
FOR NOT BEING A NEUTRAL
PLATFORM HASN'T REALLY HAPPENED
TO APPLE YET
EVEN THOUGH WE SEE TIM COOK
SORT OF ENGAGING MUCH MORE
DIRECTLY I MEAN MARK ZUCKERBERG
DIDN'T GO TO THE WHITE HOUSE.
I ATE IT IS DIFFERENT BUSINESS,
I GUESS YOU
KNOW ME.
>> I THINK A LOT OF PEOPLE IN
TECH WOULD SAY LOOK DON'T LUMP
US IN TO TACKLE IT, YOU KNOW WE
ARE NOT YOU KNOW IF THEY'RE NOT
IT WILL ADVERTISE PACIFIC.
THEY WANT TO BE AS FAR AWAY
FROM THE FACEBOOK GOOGLE
CONVERSATIONS RIGHT AS
POSSIBLE. YEAH, NO, I MEAN I
THINK THAT'S DEFINITELY HOW TIM
COOK WANTS US TO
LOOK AT.
>> BUT IT'S SORT OF WEIRD TO
SAY WHERE THE NONPARTISAN ONES
AND THEN YOU'RE TOURING THIS
FACTORY WITH TRUMP. I MEAN I
THINK
IT'S A IT'S A REMARKABLE TRICKY
HAS PULLED OFF HERE WHAT'S THAT
I WROTE THAT TIM COOK HAS TO
WALK TODAY AND CONTINUE TO WALK
WITH REGARD TO HAVING A CLOSE
ENOUGH RELATIONSHIP TO
PRESIDENT TRUMP WHERE
HE CAN POTENTIALLY AVOID THOSE
TARIFFS ON THE IPHONE BUT AT
THE SAME TIME NOT ALIENATE THE
ABA CUSTOMERS WHO SAY HEY WE
DON'T LIKE YOU SEEN WE DON'T
LIKE YOU BEING
SO CLOSE TO THIS GUY WE DON'T
AGREE WITH I MEAN UP WAS A
COULD BE SEEN BY SOME AS A
PROGRESSIVE COMPANY, THEY SAID
YEARS AGO IF YOU BELIEVE IN
CLIMATE CHANGE DON'T INVEST IN
OUR COMPANY THE
PRESIDENT DOESN'T.
>> BELIEVE IN CLIMATE THE
COMPANY HAS STOOD UP FOR SOME
HUMAN RIGHTS ISSUES ARE THE
SAME TIME
I THINK IT'S FAIR TO SAY TURNED
A BLIND EYE TO HUMAN RIGHTS
ISSUES AND SOME OTHER IN CHINA
PARTICULAR PARTICULARLY
TO SELL IPHONES THERE SO HOW
DOES APPLE INTO NCAA HOW DOES
TIM COOK WALK THIS TIGHTROPE
TODAY SO HE'S NOT LOOKING TOO
CLOSE TO TRUMP. YEAH, I MEAN I
THINK IT WILL
BE VERY.
>> INTERESTING TO SEE HOW THIS
IS PRESENTED ITS ALSO NOT YOU
KNOW GENERALLY WHEN
WE HAVE WELL EVENTS ARE VERY
MANICURED THEY'RE VERY SORT OF
CAREFUL ABOUT THE IMAGE
THEY PROJECT THIS IS NOT AN
APPLE EVENT IS TIM COOK AT A
WHITE HOUSE EVENT AND SO I
THINK THAT IMAGERY WE SEE ON
THAT WILL BE VERY INTERESTING I
WOULD ALSO SAY I THINK THE
BIGGEST THREAT IS NOT.
EMPLOYEES BEING RISE
NOT CUSTOMERS BEING ALIEN BUT
EMPLOYEES AND WE'VE SEEN OUR
INTERNAL EMPLOYEE ACTIVISM VERY
ACTIVELY A GOOGLE SOMEWHAT I
THINK IT'S STILL UNDER THE
COVERS AT FACEBOOK THAT IS VERY
MUCH HAVE.
APPLE
EMPLOYEES HAVE MOSTLY BEEN
COMFORTABLE WITH THE WAY THE
COMPANY'S NAVIGATING IN THE
TRUMP ERA. BUT THAT'S NOT A
GUARANTEE THAT COULD CHANGE
VERY QUICKLY EITHER.
>> I THINK YOU KNOW YOU WORK
FOR APPLE, IT DOESN'T REALLY
BETTER THAN THAT RIGHT IF
YOU'RE IN SILICON VALLEY, I
MEAN SOMEONE.
>> AND YOU'RE RIGHT. I DON'T
KNOW I AT THE TOP OF THAT.
>> DID NOT LET YOU LET'S LET'S
TALK ABOUT.
>> BY THE.
>> THE VOICES THAT HAVE BEEN
THAT HAVE BEEN COMING OUT OF
GOOGLE AND AND YET ALSO OUT OF
FACEBOOK RIGHT ALESSIO OUT OF
MICROSOFT WAS ON THE AMAZON BUT
BUT NOT KNOW, BUT HE REALLY IT
IN MASS, YOU KNOW COMING OUT
OF APPLE.
>> I THINK CUSTOMERS TO TIM'S
WHAT I THINK IS A GREAT
QUESTION WALKING
THIS TIME WROTE I THINK APPLE
JUST GET SO MANY FREE PASSES
BECAUSE IT'S APPLE THAT PEOPLE
JUST TRUST IN WHATEVER THE
COMPANY DOES AND
SAYS WELL ALL THEY'LL KNOW WHAT
TO DO RIGHT IN WHATEVER
SITUATION IN IT IT IS EVEN IF
IT IS MEETING WITH THE
PRESIDENT AND GIVING A TOUR OF
THIS FACILITY.
>> YEAH, I MEAN I THINK
THIS IS YOU KNOW IN ON THE TECH
PRODUCT SIDE WE CALL IT THE
FAMOUS REALITY DISTORTION FIELD
WHERE THEY SAY O HEY WE
INVENTED US BE AN EFFORT LIKE
WOW THIS WORK SO WELL AND I
THINK WE'RE SEEING A VERSION OF
THAT IN THE POLITICAL
YOU KNOW IT ALWAYS WORKS UNTIL
IT DOESN'T I THINK I THINK THE
TRICK WITH EMPLOYEE ACTIVISM IS
PEOPLE HAVING ENOUGH FAITH THAT
IF THEY AIR THEIR CONCERNS IN
TURN ONLY THEY'LL BE LISTENED
TO AND THERE WON'T BE AS MUCH
BLOWBACK YOU KNOW IT'S
EXTREMELY DISRUPTIVE TO COME
FORWARD TO SORT OF GO
TO THAT PRESS THE BOSSES WILL
BE ANGRY AND YOU KNOW YOU'RE
NOT IF YOU FEEL YOU CAN
ACCOMPLISH MORE WITHIN
THE COMPANY THEN YOU'RE GOING
TO DO THAT IT'S JUST AT US OR
POINT PEOPLE NO LONGER BELIEVE
THAT THAT'S KIND OF WHAT WE'RE
SEEING HAPPENING TOO SO WHAT
ARE THE CHANCES TARIFFS HIT THE
IPHONE IN THE NEXT YEAR.
OH MAN I'M NOT I'M NOT A
BETTING MAN I'D BE ODDS
ARE VERY IT'S JUST A VERY
UNPREDICTABLE THING I CAN SAY
THAT THEY WERE SEEING TRUMP
PLAY THIS GAME OF CHICKEN
WITH CHINA CHINA IS NO.
AT ALL INTERESTED IN CAVING I
THINK BECAUSE IT'S A POINT OF
PRIDE FOR THEM
AS WELL AND I MEAN I THINK IT'S
THE KIND OF THING WHERE IT WILL
ONLY HAPPEN IF TRUMP IS TRULY
BACKED INTO A CORNER BUT YOU
KNOW, I MEAN HE'S
BEING DONE IT RIGHT NOW CHINA
IS DRIVING A REALLY HARD
BARGAIN HE MAY JUST DESPERATELY
WANT TO CHANGE THE NEWS CYCLE
AND RIGHT
PHONE TARIFFS. I MEAN I WOULD
GUARANTEE, TIM COOK IS HAVING
NIGHTMARES ABOUT THAT ON A
WEEKLY BASIS THAT THE WITH 7 A
COLD SWEAT THINKING. THEY GOT
TRUMP TO STAND OUTSIDE ON
TERROR. I MEAN IT'S IT COULD
HAPPEN AT ANY TIME SURE I THINK
LOW. WELL I
THINK LOW I THINK THEY HAD NO
IDEA I DON'T THINK THEY NEEDED
UP.
>> YOU KNOW, I MEAN YOU NEED
THAT LOSS ON THE SIDE
OF IT THAT'S RIGHT ASSIST ME
BUT I'M ANYWAY. I'