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What would happen if say, Foxconn no longer assembled phones? How would Apple, for example, recover their supply in any reasonable time? You can't just spin up
by cromwellian 8y ago
What would happen if say, Foxconn no longer assembled phones? How would Apple, for example, recover their supply in any reasonable time? You can't just spin up that capability overnight.
Seemed to me that if China wanted to amp this up and play hardball, they could just give Tim Cook a phone call and tell him they won't be making iPhones anymore. Estimates I've seen is that about 40% of Foxconn is Apple products. They could probably replace this demand with more Japanese/Korean/Domestic IHVs, combined with banning domestic sale of iPhones and accelerating the marketshare loss that's been ongoing.
- samcheng 8y agoFoxconn is a Taiwanese company. Even though many of their factories are in China, the company also has factories across the world, with headquarters located free from Chinese government control. It's also apparently the largest private employer in China. It seems like it's really easy to shoot yourself in the foot with this trade war stuff...
- sidstling 8y agoIn what world would you close a billion dollar income stream to “win”?
- cromwellian 8y agoA billion is small potatoes to the tariffs being thrown around, and Foxconn could probably fill much of that demand from other IHVs as one of Apples common strategies is fighting competitors by locking down parts of the manufacturing and supply chain.