> to the east in China or to the west in California?
To the west in California. In China, Foxconn makes very little profit (ie. adds little value) for each iPhone they manufacture.
> I think we can spend years discussing where that value is created.
If you consider what would happen if Apple's EU sales operations were a separate company, it becomes clear which company would make the bulk of the profit (ie. which company produces the most value).
> From a purely practical point of view, Apple will only be able to sell their goods in the EU and pay no taxes on the profits for as long as they can keep finding another Ireland.
Why couldn't Apple just spin off its EU operations as an entirely separate company? Apple US would have a very strong bargaining position when selling iPhones - it could charge Apple EU a wholesale price which was very close to the retail price. Apple EU would therefore make very little profit and pay very little tax to EU authorities.
To the west in California. In China, Foxconn makes very little profit (ie. adds little value) for each iPhone they manufacture.
> I think we can spend years discussing where that value is created.
If you consider what would happen if Apple's EU sales operations were a separate company, it becomes clear which company would make the bulk of the profit (ie. which company produces the most value).
> From a purely practical point of view, Apple will only be able to sell their goods in the EU and pay no taxes on the profits for as long as they can keep finding another Ireland.
Why couldn't Apple just spin off its EU operations as an entirely separate company? Apple US would have a very strong bargaining position when selling iPhones - it could charge Apple EU a wholesale price which was very close to the retail price. Apple EU would therefore make very little profit and pay very little tax to EU authorities.