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Is the Economist really implying that Cook, the CEO of Apple, one of the world's largest publicly traded corporations, has not thought about forming a future fa

by maz1b 7y ago

Is the Economist really implying that Cook, the CEO of Apple, one of the world's largest publicly traded corporations, has not thought about forming a future facing outlook that is comprehensive in its strategy and planning? A cursory glance at Apple's leadership page shows that Isabel Ge Mahe is vice president and managing director of Greater China [1], which to me indicates that yes, Apple definitely is thinking about China at a high level, by formally naming an executive specifically to focus on strategy in China. This is further indicated in their recent highlighting of Chinese-centric features on OS products at events such as WWDC. As far as the trade war is concerned, I think it's a little premature to assume that it will drag on and increase in its scope and scale. Apple has pull in D.C., and the interconnected nature of the global economy will likely ensure that there will be a resolution to this at some point in the near future. [1] https://www.apple.com/leadership/isabel-ge-mahe/ https://www.apple.com/leadership/isabel-ge-mahe/

albertshin 7y ago
> As far as the trade war is concerned, I think it's a little premature to assume that it will drag on and increase in its scope and scale. Apple has pull in D.C., and the interconnected nature of the global economy will likely ensure that there will be a resolution to this at some point in the near future. Alibaba just decided to IPO (again) in Hong Kong -- as opposed to offering more shares through their existing US exchange. Given the timing of this decision, it sounds like at least their leadership think this trade war may go on for a while.
- ksec 7y ago
  There is another reason for that. Alibaba has always wanted to be listed in HK. But system in places requires all shares has equal right, you don't get those A B C Shares in US where they have little to zero voting right. Jack Ma said the these rules are old and US way of cooperate ownership is the way going forward. Which leads to Alibaba went to US to be listed. Now HK has relaxed its rules a little bit. So this is the major reason why Alibaba is coming back to HK.
brownbat 7y ago
> the interconnected nature of the global economy will likely ensure that there will be a resolution to this... I hope so. Rational actor models worry me more in politics and foreign policy than in economics. Reasons this might just keep getting worse: 1) Diffusion of responsibility: Those who see the trade war as dangerous assume someone else will influence events to avoid a greater crisis before we get there. 2) Frog boiling: People are setting expectations based on the current week and ignoring cumulative damage. 3) Self-doubt: Those who could use leverage in DC question whether traditional tools would be effective in the current political environment 4) Policy disagreements: Many powerful policy advisors believe the trade war will be good in the long run. Some are convinced that it is good in the short run. 5) Commitment devices: There are moments where both sides will "burn their ships" and be unable to move towards compromise without a show of contrition from the other side. 6) Madman theories: Leaders can justify irrationality in the short term by appealing to the long term benefits. 7) Lack of understanding: Each side can underestimate the others' domestic political forces that prevent quick compromise I still hope you're right. Things could get worse rapidly in ways that are too staggering to wrap my head around, but it's also hard for me to imagine off-ramps based on all the personalities (and systems of advisors) involved on both sides.
_pmf_ 7y ago
> Is the Economist really implying that Cook, the CEO of Apple, one of the world's largest publicly traded corporations, has not thought about forming a future facing outlook that is comprehensive in its strategy and planning? Looking at Uber, is is really that far fetched that executives are very good at achieving short and medium term success while completely lacking any viable long term vision? Given that even economist cannot predict the future (see the trade war) despite what certain outlets want us to believe, that's not so dumb after all (in the case of Apple).
vondur 7y ago
Does Apple have any other significant manufacturing facilities outside of China? If not, I’d say they don’t have much of a plan B, otherwise they’d have hedged their bets a while ago and moved some manufacturing to other locations.
- ksec 7y ago
  Or you mean does Foxconn, Pegatron and Wistron had any assembly lines outside of China? Yes, Mostly in India. I think the one in Brazil is comparatively small.
scarface74 7y ago
And to add to what you said. Tim Cook is considered a supply chain and operations master that had just as much to do with Apple’s resurgence under Jobs as Jobs himself.
ksec 7y ago
Nearly 25% of all Smartphone were iPhone according to different Data Sets in China. That is very high considering the majority of population has Sub $10K salary. From about 800M Smartphones, 25% equals to 200M iPhone in use. China has to be top 3 countries ( if not top 2 ) with the most iPhone in use. And that is one reason China seems to have sided with China so far.

by maz1b 7y ago

albertshin 7y ago

> As far as the trade war is concerned, I think it's a little premature to assume that it will drag on and increase in its scope and scale. Apple has pull in D.C., and the interconnected nature of the global economy will likely ensure that there will be a resolution to this at some point in the near future. Alibaba just decided to IPO (again) in Hong Kong -- as opposed to offering more shares through their existing US exchange. Given the timing of this decision, it sounds like at least their leadership think this trade war may go on for a while.

ksec 7y ago
There is another reason for that. Alibaba has always wanted to be listed in HK. But system in places requires all shares has equal right, you don't get those A B C Shares in US where they have little to zero voting right. Jack Ma said the these rules are old and US way of cooperate ownership is the way going forward. Which leads to Alibaba went to US to be listed. Now HK has relaxed its rules a little bit. So this is the major reason why Alibaba is coming back to HK.

brownbat 7y ago

> the interconnected nature of the global economy will likely ensure that there will be a resolution to this... I hope so. Rational actor models worry me more in politics and foreign policy than in economics. Reasons this might just keep getting worse: 1) Diffusion of responsibility: Those who see the trade war as dangerous assume someone else will influence events to avoid a greater crisis before we get there. 2) Frog boiling: People are setting expectations based on the current week and ignoring cumulative damage. 3) Self-doubt: Those who could use leverage in DC question whether traditional tools would be effective in the current political environment 4) Policy disagreements: Many powerful policy advisors believe the trade war will be good in the long run. Some are convinced that it is good in the short run. 5) Commitment devices: There are moments where both sides will "burn their ships" and be unable to move towards compromise without a show of contrition from the other side. 6) Madman theories: Leaders can justify irrationality in the short term by appealing to the long term benefits. 7) Lack of understanding: Each side can underestimate the others' domestic political forces that prevent quick compromise I still hope you're right. Things could get worse rapidly in ways that are too staggering to wrap my head around, but it's also hard for me to imagine off-ramps based on all the personalities (and systems of advisors) involved on both sides.

_pmf_ 7y ago

> Is the Economist really implying that Cook, the CEO of Apple, one of the world's largest publicly traded corporations, has not thought about forming a future facing outlook that is comprehensive in its strategy and planning? Looking at Uber, is is really that far fetched that executives are very good at achieving short and medium term success while completely lacking any viable long term vision? Given that even economist cannot predict the future (see the trade war) despite what certain outlets want us to believe, that's not so dumb after all (in the case of Apple).

vondur 7y ago

Does Apple have any other significant manufacturing facilities outside of China? If not, I’d say they don’t have much of a plan B, otherwise they’d have hedged their bets a while ago and moved some manufacturing to other locations.

ksec 7y ago
Or you mean does Foxconn, Pegatron and Wistron had any assembly lines outside of China? Yes, Mostly in India. I think the one in Brazil is comparatively small.

scarface74 7y ago

And to add to what you said. Tim Cook is considered a supply chain and operations master that had just as much to do with Apple’s resurgence under Jobs as Jobs himself.

ksec 7y ago

Nearly 25% of all Smartphone were iPhone according to different Data Sets in China. That is very high considering the majority of population has Sub $10K salary. From about 800M Smartphones, 25% equals to 200M iPhone in use. China has to be top 3 countries ( if not top 2 ) with the most iPhone in use. And that is one reason China seems to have sided with China so far.