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Diversifying a supply chain is not so easy. Takes tooling, JiT/Sequencing of parts, etc. Apple is going to have to invest (subsidize) to build it up from scratc

Diversifying a supply chain is not so easy. Takes tooling, JiT/Sequencing of parts, etc. Apple is going to have to invest (subsidize) to build it up from scratch. And frankly I don't see Pegatron, Wistron, and Foxconn being too eager to do this. I've heard they're already dragging their feet.

ClumsyPilot 4y ago
> Apple is going to have to invest (subsidize) These terms should not be used interchangeably, the meaning is totally different. You expect to see financial returns from investment
- paxys 4y ago
  You also expect to see financial returns from subsidies. The meaning isn't totally different. They are just a type of investment.
  - ClumsyPilot 4y ago
    not at all, some subsidies are humanitarian, or purely political. If you have deeper pockets, you could subsidise your products to bancrupt competitors, a technique called dumping. EU subsidised renewables to enable renewable tech development - a worthy goal, but not an investment. UK founded the Green Investment bank, it did actual investment into R&D and construction. Same goal, but one us subsidy, one is investment. US corn subsidies no longer make any sense - but cannot be removed because it would piss off a major voting block. If you were to su sidise farming from scratch, you would at least pick a variety of plants to make a balanced meal nutritionally
    - paxys 4y ago
      Again, you are describing every kind of investment, not just subsidies.
    - rTX5CMRXIfFG 4y ago
      > not at all, some subsidies are humanitarian, or purely political. Considering that we’re talking about Apple subsidizing factories to diversify its supply chain, do you think we’re talking about humanitarian and political subsidies at all? I’m sorry but it seems that people are deliberately being obtuse here.
  - FabHK 4y ago
    An investment is expected to yield a financial return. You subsidise something fully willing to incur financial losses because you are pursuing non-financial goals (such as greener energy, jobs, ...).

ClumsyPilot 4y ago

> Apple is going to have to invest (subsidize) These terms should not be used interchangeably, the meaning is totally different. You expect to see financial returns from investment

paxys 4y ago
You also expect to see financial returns from subsidies. The meaning isn't totally different. They are just a type of investment.
- ClumsyPilot 4y ago
  not at all, some subsidies are humanitarian, or purely political. If you have deeper pockets, you could subsidise your products to bancrupt competitors, a technique called dumping. EU subsidised renewables to enable renewable tech development - a worthy goal, but not an investment. UK founded the Green Investment bank, it did actual investment into R&D and construction. Same goal, but one us subsidy, one is investment. US corn subsidies no longer make any sense - but cannot be removed because it would piss off a major voting block. If you were to su sidise farming from scratch, you would at least pick a variety of plants to make a balanced meal nutritionally
  - paxys 4y ago
    Again, you are describing every kind of investment, not just subsidies.
  - rTX5CMRXIfFG 4y ago
    > not at all, some subsidies are humanitarian, or purely political. Considering that we’re talking about Apple subsidizing factories to diversify its supply chain, do you think we’re talking about humanitarian and political subsidies at all? I’m sorry but it seems that people are deliberately being obtuse here.
- FabHK 4y ago
  An investment is expected to yield a financial return. You subsidise something fully willing to incur financial losses because you are pursuing non-financial goals (such as greener energy, jobs, ...).