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Link to orginal, more complete article: http://asia.nikkei.com/Business/AC/Foxconn-considers-7bn-US-display-facility-with-Apple?page=2 http://asia.nikkei.com/Bu
by Nokinside 10y ago
Link to orginal, more complete article: http://asia.nikkei.com/Business/AC/Foxconn-considers-7bn-US-display-facility-with-Apple?page=2 http://asia.nikkei.com/Business/AC/Foxconn-considers-7bn-US-...
>"In the future they may be paying some $500 more for [U.S.] products, but those do not necessarily work better than a $300 phone," he said, after urging U.S. authorities to provide concessions on land and electricity to facilitate Foxconn's manufacturing operations.
>Despite such U.S. investment, China remains a key market and the primary manufacturing base for Apple and Foxconn, and neither company is leaving anytime soon.
>"Yes, we will continue to add to our investments in China," Gou told reporters. "China is the world's biggest market, and why should we turn down the biggest market?"
>Meanwhile, although Apple's sales in the greater China region declined 30% year-on-year through the end of the September quarter, chief executive Tim Cook remained optimistic about the Chinese market.
This is another piece in the puzzle. For Apple, defending North American market is essential. Starting manufacturing in US might be admitting that it has lost Chinese and Asian markets.
Is China the biggest market as Gou told? For many consumer products and electronics China is the biggest or becoming the biggest market. Surprisingly many products are released first China only.
http://money.cnn.com/2015/10/14/news/economy/china-middle-class-growing/ http://money.cnn.com/2015/10/14/news/economy/china-middle-cl...
>China's middle class is now the biggest in the world, and growing much faster than America's, according to research by Credit Suisse. There are 109 million Chinese with wealth of between $50,000 and $500,000.
- ec109685 10y agoWhy do you think they would exclusively manufacture components in the US?
- Nokinside 10y agoIf they partner in massive $7 billion high volume display factory that mostly produces display's for Apple, it's unlikely that they go trough the effort to replicate all that special tooling and quality management for other markets.
- IBM 10y agoIt likely won't be for Apple exclusively and it's certainly not the only source of displays for Apple. Several suppliers are investing in OLED production in order to meet Apple's supply requirements.
- Nokinside 10y agoThere is trade-off between redundant supply and cutting edge design. If Apple pushes for all-glass design and fully adopts OLED it it may have to choose between the technological edge and diversified supply-chain. Sharp (owned by Foxconn) is good candidate and this joint investment speculation supports it. Having joint operation would mean that Apple can be more involved in the process process.
- anigbrowl 10y agoTo avoid a 35% import tariff.
- aoeu345 10y agoPlease fix your link at the top to http://asia.nikkei.com/Business/AC/Foxconn-considers-7bn-US-display-facility-with-Apple?page=1 http://asia.nikkei.com/Business/AC/Foxconn-considers-7bn-US-... Your link goes to page 2, this link goes to page 1.
- leemailll 10y agoWealth might not be a good measure to classify middle class in China. A two-bedroom apartment easily costs more than a million in Beijing. Annual income might serve better.
- deleted 10y ago[deleted]
- gurkendoktor 10y ago> be admitting that it has lost Chinese and Asian markets. If Asian markets have only fully embraced Apple with the release of the larger iPhone 6/6+ (record sales!), isn't it possible that these markets are still happy with their phones and see no need to update? There hasn't even been a new design since the iPhone 6. the statistics that I found only talk about sales. This one counts Chinese users and Apple's share actually went up last month (?): http://gs.statcounter.com/vendor-market-share/mobile/china http://gs.statcounter.com/vendor-market-share/mobile/china