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>move all production out of the PRC ... >Interesting to note the article mentions iPhone 6, 6s and 7 This is pretty much why Apple or other OEMs can't move a
by dirtyid 7y ago
>move all production out of the PRC
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>Interesting to note the article mentions iPhone 6, 6s and 7
This is pretty much why Apple or other OEMs can't move all production out of PRC. Mainland supply chain and expertise is critical to rapidly refining and launching new products. Once manufacturing matures, the process can be exported to other countries. Apart from Indian, I don't think any other country can replicate Chinese scale and specific expertise, the latter being particularly limiting due to demographics. Both would take generations to develop.
- etaioinshrdlu 7y agoExactly, it would be a courageous move for the richest company in the world (by cash on hand, seems to still be Apple by a wide margin) to risk losing $$ for standing up with its moral values.
- dahfizz 7y agoIt would also be great if they donated 50% of profits to charity. Companies don't throw away money for the fun of it. For all it's 'courage' and self righteousness, Apple is a profit seeking entity like every other.
- etaioinshrdlu 7y agoSome Apple core values: https://www.apple.com/environment/ https://www.apple.com/environment/ https://www.apple.com/diversity/ https://www.apple.com/diversity/ https://www.apple.com/privacy/ https://www.apple.com/privacy/ https://www.apple.com/supplier-responsibility/ https://www.apple.com/supplier-responsibility/ Those are some fantastic values. It's our job as the public to demand companies stick to their values and to cause a ruckus if they act like hypocrites. And it's our job to pass laws to encourage better values. My 2 cents.
- dirtyid 7y agoI don't think it's a matter of risking money, rather annual product cycles, i.e. their entire hardware business model is not viable without China. If there's another country that can do what China currently dose at twice the price, moving there would be courage. If moving out of China means 2 year hardware cycles then that would short sighted.
- krageon 7y agoCompanies don't have moral values, except as a sales pitch. They won't keep to them either, except as required by public outrage. Let's not put on our rose-tinted glasses, even for a track record that's less dark gray than some other companies.
- shitgoose 7y agofirst iphone was announced in 2007. much less than one generation ago. india will be fine.
- dirtyid 7y agoThe Chinese supply chains that eventually build the iPhone grew from economic development zones in the 80s. India isn't starting from zero, but it's also not going to replicate that within a decade. Assuming it could - we don't know if democracies can direct capital development the same way authoritarian state capitalism could. I think India should be fine, at least in the short term, if only because Chinese manufacturing want to migrate to ASEAN. It benefits their bottom line. However, there's also the possibility that China will spin up African manufacturing before Indian industry can inherit the role.
- shitgoose 7y ago"Chinese manufacturing want to migrate to ASEAN" curious, what do you mean by that? "China will spin up African manufacturing" you think that will work? also, my limited understanding is that china is after africa's natural resources, infrastructure etc, not people.
- TomMarius 7y ago> infrastructure Hardly, they're building it themself since there isn't any
- dirtyid 7y agoChina is working to escape middle income trap, their goal is to shift into higher paying domestic consumption + services which means inevitably shifting manufacturing out of the country. They are already experiencing labor shortages due to high wage, and combined with efforts to reduce pollution the government and business owner interest are aligned. Keep in mind most of the factories Chinese owned, they have incentive to offshore their business to where labor is cheap, currently that's in adjacent ASEAN countries that's relatively close to Chinese logistics chain. As for Africa, they're already paying for the infrastructure, if resources is near by, it makes sense to consolidate manufacturing. And geopolitical it's preferable to boosting the development of India, an immediate regional competitor. Also Africa is fragmented and easier to negotiate with, have similar demographics to India (lots of young), more willing to learn mandarin. Alternatively, we're not even sure if massive manufacturing nations are viable with automation. Regardless there's