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>The economist sees value being passed on to American citizens in the form of a price reduction of Apple products

The person in denial more like. Any ecomomist would realise the price of apple products is tied to how much you will pay (ie for profit maximisation), not how much it costs. That is how you make over $400k per employee.

The article points out that wages are a small part of the cost.

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That's a false dichotomy. A good's price is tied to how much you'll pay and how much it costs. If an iPhone cost $200 more to make, it'd be a good bet that it wouldn't sell for the same price.

Not really. The price is a function of the value to the buyer, which drives demand and is independent of manufacturing cost. Above a certain price I just won't find an iPhone to be providing value, so demand will drop. Apple has some room to cover costs with price increases, but it's limited.

If the good costs more to make than the buyer is willing to pay then there is no price because there is no sale, so clearly price depends on cost. Functions can have more than one input.

>Any ecomomist would realise the price of apple products is tied to how much you will pay, not how much it costs.

It's tied to both. The profit maximizing price varies with production cost.

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