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I'd rephrase it as "Apple is stuck in an abusive relationship in China". They would love to have some flexibility but options are pretty bleak. They tried to ma
by invalidname 3y ago
I'd rephrase it as "Apple is stuck in an abusive relationship in China". They would love to have some flexibility but options are pretty bleak. They tried to manufacture in the states more than once and ran into difficulties. They're trying to manufacture in India and running into problems there too.
This is before considering the sales within China which they must maintain to keep growth. There are no simple solutions here. The long term work is to restore some manufacturing outside of China but this is much harder than just setting up a factory as it requires the entire ecosystem of factories, ores, education, training, etc. With automation this might be doable but will probably take at least a decade of investment. A lot of it from the government which is the only body that can do that. Unfortunately, because bipartisanship is dead it's impossible for any side to carry out that required long-term investment in the market.
- tooltalk 3y ago>> They're trying to manufacture in India and running into problems there too. << Apple could always learn from others: "Samsung Is a Case Study in How Manufacturers Leave China" Company still has significant operations in China but its smartphone manufacturing business pulled up stakes years ago, May 3, 2023, WSJ.
- invalidname 3y agoI agree. That's part of why my current phone is a Samsung. It's still a huge challenge. Also South Korea is better equipped for this as dealing with China is easier there. So if they need specific ores or plants they can get them from China at a relatively low cost. The same isn't true for the US.