Apple’s Supply Chain: An Example Of Challenges Of Bringing Manufacturing Jobs Back To The U.S

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I came across the following cool infographic showing the difficulty of manufacturing jobs back to the US. From the AB article:

In this infographic, we show how a sample of nine companies from Apple’s supply chain represent $122 billion in assets and 525,000 employees, all of which would need to be relocated to bring iPhone manufacturing back to the US. And the chain gets even more complex the further down it you go. Below these nine are even more layers of component and subcomponent suppliers outside the US, which could triple the costs and further complicate the logistical challenges of relocation.

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Source: Homeward Bound? A Challenging Journey for US Manufacturing, Alliance Bernstein, Mar 14, 2017

Update:

Global iPhone Supply Chain

Source: The Hindu BusinessLine

Also see:

Breakdown of Apple iPhone 7 Retail Price, TFS

Breakdown of an Apple iPhone 5 Component Costs, TFS

Apple Inc. (AAPL) is the world’s most valuable company with market cap exceeding $742.0 billion.

Disclosure: No Positions

Ten Latin American Stocks To Consider

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Emerging markets are back in vogue this year, As commodity prices are increasing, investors are turning their attention to countries dependent on commodity exports.Among the many emerging market regions Latin America offers plenty of opportunities for investors looking for growth. Following are ten stocks from Latin American countries that investors can consider for further research:

1.Company: Ultrapar Participacoes SA (UGP)
Current Dividend Yield: 2.34%
Sector: Oil, Gas & Consumable Fuels
Country: Brazil

2.Company: Banco Bradesco SA (BBD)
Current Dividend Yield: 4.11%
Sector: Banking
Country: Brazil

3.Company:Banco Santander- Chile (BSAC)
Current Dividend Yield: 4.46%
Sector: Banking
Country: Chile

4.Company: Banco de Chile (BCH)
Current Dividend Yield: 3.62%
Sector:Banking
Country: Chile

5.Company:Empresa Nacional de Electricidad SA (EOC)
Current Dividend Yield: 3.79%
Sector:Electric Utilities
Country: Chile

6.Company: Braskem SA (BAK)
Current Dividend Yield: 7.71%
Sector: Chemicals
Country: Brazil

7.Company: Bancolombia (CIB)
Current Dividend Yield: 3.10%
Sector: Banking
Country: Brazil

8.Company: Credicorp (BAP)
Current Dividend Yield: 2.31%
Sector: Banking
Country: Peru (but based in Bermuda)

9.Company:Vina Concha y Toro SA (VCO)
Current Dividend Yield: 2.60%
Sector:Beverages
Country: Chile

10.Company: Embraer SA (ERJ)
Current Dividend Yield: 0.71%
Sector: Aerospace & Defense
Country: Brazil

Note: Dividend yields noted above are as of Mar 17, 2017. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: Long CIB, BCH, BBD

Dividend Withholding Tax Rates By Country 2017

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Update – For the latest rates go to: Dividend Withholding Tax Rates by Country for 2018

The Withholding Tax Rates for Foreign Stock Dividends for 2017 are shown in the table below. As some countries change the withholding tax rate every year this list can be a valuable tool for investors holding or planning to invest in foreign stocks. Since this tax can take a huge chunk of dividends sometimes it is important to review the tax impacts before going abroad. For example, among developed countries Switzerland charges one of the highest dividend withholding taxes for non-residents. Others such as Canada give favorable treatment to Americans by waving the tax if the investments (excluding REITs) are held in qualified retirement accounts such as 401Ks.

The Dividend Withholding Tax Rates by Country for 2017 :

Click to enlarge

Source: Deloitte

Download: Dividend Withholding Tax Rates By Country 2017 (in pdf format)

Related:

The World’s Top 100 Non-Financial TNCs Ranked by Foreign Assets 2015

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The World’s Top 100 Non-Financial Trans-National Corporations (TNCs) ranked by Foreign Assets as of 2015 are listed in the table below:

RankCompanyCountryIndustryForeign Assets (in millions of dollars)Total Assets (in millions of dollars)
1Royal Dutch Shell plcUnited KingdomMining, quarrying and petroleum288 283340 157
2Toyota Motor CorporationJapanMotor Vehicles273 280422 176
3General Electric CoUnited StatesIndustrial and Commercial Machinery257 742492 692
4Total SAFrancePetroleum Refining and Related Industries236 719244 856
5BP plcUnited KingdomPetroleum Refining and Related Industries216 698261 832
6Exxon Mobil CorporationUnited StatesPetroleum Refining and Related Industries193 493336 758
7Chevron CorporationUnited StatesPetroleum Refining and Related Industries191 933266 103
8Volkswagen GroupGermanyMotor Vehicles181 826416 596
9Vodafone Group PlcUnited KingdomTelecommunications166 967192 310
10Apple Computer IncUnited StatesComputer Equipment143 652290 479
11Anheuser-Busch InBev NVBelgiumFood & beverages129 640134 635
12Softbank CorpJapanTelecommunications125 485184 325
13Honda Motor Co LtdJapanMotor Vehicles125 270162 268
14Enel SpAItalyElectricity, gas and water124 603175 806
15Daimler AGGermanyMotor Vehicles123 881236 874
16Eni SpAItalyPetroleum Refining and Related Industries118 319147 024
17CK Hutchison Holdings LimitedHong Kong, ChinaRetail Trade118 250133 280
18Glencore Xstrata PLCSwitzerlandMining, quarrying and petroleum114 941128 485
19Siemens AGGermanyIndustrial and Commercial Machinery113 020134 995
20Telefonica SASpainTelecommunications110 879134 134
21Nissan Motor Co LtdJapanMotor Vehicles109 475154 651
22Nestlé SASwitzerlandFood & beverages101 977124 590
23Deutsche Telekom AGGermanyTelecommunications100 140156 981
24Mitsubishi CorporationJapanWholesale Trade100 095132 777
25Allergan PLCIrelandPharmaceuticals99 535135 841
26BMW AGGermanyMotor Vehicles97 843187 799
27Johnson & JohnsonUnited StatesPharmaceuticals96 802133 411
28EDF SAFranceElectricity, gas and water94 538304 255
29Iberdrola SASpainElectricity, gas and water94 453114 163
30Rio Tinto PLCUnited KingdomMining, quarrying and petroleum91 20991 564
31Fiat Chrysler AutomobilesUnited KingdomMotor Vehicles90 275114 572
32EngieFranceElectricity, gas and water89 504175 238
33Microsoft CorporationUnited StatesComputer and Data Processing81 790176 223
34Pfizer IncUnited StatesPharmaceuticals81 431167 460
35Mitsui & Co LtdJapanMining, quarrying and petroleum81 26597 120
36E.ON AGGermanyElectricity, gas and water74 746124 011
37ArcelorMittalLuxembourgMetals and metal products74 16176 846
38SanofiFrancePharmaceuticals72 545111 607
39China National Offshore Oil CorpChinaMining, quarrying and petroleum71 090182 282
40Ford Motor CompanyUnited StatesMotor Vehicles68 366224 925
41Altice NVNetherlandsTelecommunications68 35470 678
42Airbus Group NVFranceAircraft68 234116 362
43Novartis AGSwitzerlandPharmaceuticals67 533131 556
44Procter & Gamble CoUnited StatesChemicals and Allied Products64 498129 495
45Hon Hai Precision IndustriesTaiwan Province of ChinaElectronic components64 04070 244
46Roche GroupSwitzerlandPharmaceuticals62 79176 128
47Samsung Electronics Co., Ltd.Korea, Republic ofCommunications equipment62 294205 860
48BHP Billiton Group LtdAustraliaMining, quarrying and petroleum62 274124 580
49GlaxoSmithKline PLCUnited KingdomPharmaceuticals62 00479 285
50Statoil ASANorwayPetroleum Refining and Related Industries61 854109 596
51International Business Machines CorporationUnited StatesComputer and Data Processing60 069110 495
52Lafargeholcim LtdSwitzerlandStone, Clay, Glass, and Concrete Products59 44479 950
53Wal-Mart Stores IncUnited StatesRetail Trade58 309199 581
54Orange SAFranceTelecommunications56 58999 727
55ConocoPhillipsUnited StatesPetroleum Refining and Related Industries55 52397 484
56BASF SEGermanyChemicals and Allied Products55 11577 264
57General Motors CoUnited StatesMotor Vehicles52 490194 520
58Mondelez International, Inc.United StatesFood & beverages51 75362 843
59BG Group plcUnited KingdomMining, quarrying and petroleum51 71059 676
60Marubeni CorporationJapanWholesale Trade50 38163 358
61Robert Bosch GmbHGermanyMotor Vehicles50 30884 278
62Repsol YPF SASpainPetroleum Refining and Related Industries50 23168801
63Anglo American plcUnited KingdomMining, quarrying and petroleum50 05952 013
64Unilever PLCUnited KingdomFood & beverages49 50157 044
65Sony CorporationJapanElectric equipment48 942148 418
66Christian Dior SAFranceTextiles, clothing and leather46 54367 170
67Petronas - Petroliam Nasional BhdMalaysiaMining, quarrying and petroleum45 572153 770
68Imperial Brands PLCUnited KingdomTobacco45 45545 713
69AstraZeneca PLCUnited KingdomPharmaceuticals45 41260 124
70China Ocean Shipping (Group) CompanyChinaTransport and storage44 80557 875
71Sumitomo CorporationJapanWholesale Trade44 25169 590
72Bayer AGGermanyPharmaceuticals44 17280 625
73RWE AGGermanyElectricity, gas and water43 60286 534
74Schlumberger LtdUnited StatesMining, quarrying and petroleum43 47568 005
75Schneider Electric SAFranceElectricity, gas and water43 24146 441
76SABMiller PLCUnited KingdomFood & beverages43 19543 589
77Liberty Global plcUnited KingdomTelecommunications41 78564 610
78SAP SEGermanyComputer and Data Processing41 52245 146
79Hewlett-Packard CoUnited StatesComputer and Data Processing41 39181 270
80ITOCHU CorporationJapanWholesale Trade41 27371 536
81British American Tobacco PLCUnited KingdomTobacco40 86846 751
82United Technologies CorporationUnited StatesAircraft39 92587 484
83Heineken NVNetherlandsFood & beverages39 91141 137
84National Grid PLCUnited KingdomElectricity, gas and water39 24084 761
85Oracle CorporationUnited StatesComputer and Data Processing38 520110 903
86Amgen IncUnited StatesPharmaceuticals38 39271 576
87AP Moller - Maersk A/SDenmarkTransport and storage37 92462 408
88Renault SAFranceMotor Vehicles37 76598 827
89WPP PLCUnited KingdomBusiness Services37 16942 648
90Linde AGGermanyChemicals and Allied Products36 76238 555
91Diageo PLCUnited KingdomFood & beverages36 68640 585
92Teva Pharmaceutical Industries LimitedIsraelPharmaceuticals36 35754 258
93Vattenfall ABSwedenElectricity, gas and water36 11358 969
94Volvo ABSwedenMotor Vehicles36 10544 445
95América Móvil SAB de CVMexicoTelecommunications35 79074 624
96Fresenius SE & Co KGaAGermanyHealth care services35 38747 324
97Caterpillar IncUnited StatesIndustrial and Commercial Machinery35 36078 497
98Vale SABrazilMining, quarrying and petroleum35 33887 251
99Hitachi LtdJapanComputer Equipment35 140111 723
100Alphabet IncUnited StatesComputer and Data Processing35 128147461

Source: UNCTAD

A few observations:

  • Oil and auto firms dominate the top 10 this ranking based on foreign assets with Royal Dutch Shell (RDS-A, RDS-B) taking the first spot.
  • Apple(AAPL) which is ranked number 10, had more than half of its total employees in foreign countries.
  • Some of the firms outside of developed Europe and the US include drug maker Teva(TEVA) of Israel, oil giant Petronas of Malaysia, Vale(VALE) of Brazil, etc.
  • Many of the firms in this list are world-class leaders in their respective industries. For example, BASF SE(BASFY) is the world’s top chemical company and US-based Johnson & Johnson (JNJ) is one of the world’s best pharma companies.
  • Though Alphabet(GOOG) is the last in the ranking, it shows the scale of worldwide presence and foreign assets of Google.
  • From a long-term investment perspective, firms like Nestle(NSRGY), National Grid (NGG), Novartis(NVS), Imperial Brands (ITYBY), etc. are excellent picks.

 Download List:

  1. The World’s Top 100 Non-Financial Trans-National Corporations (TNCs) by foreign assets as of 2015 (in Excel format)

See also:

Disclosure: No Positons