with the lawyers of double irish dutch sandwich bermuda blackhole international office

google : warren buffet byd

Apple will pay the extortion… I mean license the Chinese patent and all will be good in apple land again.

Kind of hard to have sympathy for apple here. They take tax benefits and promise to make the factories local, but instead they then ship the jobs overseas for a bigger profit on top of the tax cuts.

we patented the bullet now you make them so we can shoot you with them if you ever question that we own them.

a primate would give you an accurate guess on how this is going to turn out…….

The same process is happening in Hollywood. You might look at this:
————————————————–
Willy Shih and Henry McGee, Hollywood on the Yellow Sea: Wang Jianlin, one of China’s richest men, is creating a rival to the American dream factory, from scratch.

http://www.theatlantic.com/magazine/archive/2015/12/hollywood-on-the-yellow-sea/413185/
——————————————–

A Chinese zillionaire, more or less government-backed, is instituting a takeover and outsourcing of Hollywood. All the Chinese really want from the United States are the movie stars. They are building a special “cinema city” for the movie stars to live in. Movies which are very expensive to make are generally suited to children, or to naive third-world audiences. Ingmar Bergman, the archetypal grown-up film-maker, never spent very much money, because he didn’t blow things up. The American movie theater market is effectively stalled at about four tickets and thirty dollars per person per year, not even a dollar a week. What this reflects is that most Americans are comfortable at home, and don’t see any reason to go out to a movie house. Chinese are not as rich as Americans, but they are much more likely to go to movies. Someone who lives in _barracks_ conditions, like many Chinese workers, finds a movie house more comfortable than his barracks. Someone who has a comfortable home also has room for all kinds of _stuff_. He can own various kinds of tools, and amuse himself by making things. Someone who lives in a barracks must, perforce, keep all his belongings in a satchel and/or a locker. This implies a preference for simple and passive entertainments. Thus, the Chinese are becoming the main market for movies. And they have no intention of paying significant foreign exchange for them.

Something roughly similar tends to operate for a tablet computer. There is no very compelling case to use a tablet computer at home. Video games are best played when sitting down (and not while driving– emphatically not while driving). Beyond a certain threshold, there is no compelling case for a more powerful tablet computer. The kind of people who will eventually push the performance on tablet computers will be those who do not have a place to sit down of their own, for example, someone who spends hours a day, riding in a crowded bus. You can play with a tablet computer under those circumstances, but you cannot do either gardening or carpentry.

It has been estimated that “Chinese-manufactured” electronics are only about five percent Chinese by value-added, and if we take valued-added-by-manufacturing, as distinct from risk assumption, the figure would be more like one percent. Most of the money goes for buying chips and other “clean room” components imported from outside China, and then for software and marketing in the country where the machine is eventually sold. In the field of mechanical watches, there is the notion of a “movement,” that is, a dial, and hands, and the gears to make them turn, manufactured as a single unit which fits into an artistically designed case. What I think may happen is that chip-makers, such as Intel, may begin to sell “tablet movements,” assembled by machines with essentially zero human labor. A “tablet movement” would include a screen, and processor, memory, etc., bonded to the back of the screen, but it wouldn’t have any externally visible label, and it would fit into a standard-sized case which would have a label. The automated factories which produce “tablet movements” would be proximate to chip fabs, which are mostly not in China. Chip fabs do not require cheap labor, you see. Indeed, chip fabs cannot tolerate cheap labor. People have to breathe, and their breath inevitably contaminates the chip-making process. A lot of the small components which China has learned to produce, things like cheap small capacitors and resistors, will be rendered irrelevant by the consolidation of systems into fewer and fewer chips, the so-called “System on a Chip” concept Probably, Intel would be able to obtain funding to set up the necessary factories from the United States Government, on National Security grounds.

https://en.wikipedia.org/wiki/System_on_a_chip

China has not been very successful in off-shoring American chip fabs. That is political in the highest degree, and is likely to provoke government intervention. The are a lot of chip fabs in the United States, and a lot in Europe (especially Germany), and a lot in Japan and South Korea, and a lot in Taiwan, and a lot in Singapore. All of them, even the ones in Taiwan, are effectively out of China’s military reach. China will continue to struggle towards the point where it does not have to import chips, but it will be a slow process.

Of course, Apple is now more like Universal Studios than it is like Intel. It is not really indispensable to a government which wants to control the thoughts of the users. The Chinese government will see Apple primarily in terns of the App Store, a system of censorship which they want to convert to their own uses.