5 ms·

Apple is basically building redundancy into its supply chain here. Just in case they are cut off from China, they will be able to set up final assembly elsewher

Apple is basically building redundancy into its supply chain here. Just in case they are cut off from China, they will be able to set up final assembly elsewhere and will already have supply of the critical parts.

pkaye 3y ago
Mexico is becoming the new China for manufacturing. Even many Chinese companies are building factories there. Also recently Mexico is offering work visas for workers from central America. Check out this Wendover video on it. https://www.youtube.com/watch?v=GXT46osICdY https://www.youtube.com/watch?v=GXT46osICdY
- ChuckNorris89 3y ago
  Wasn't Mexico like that in the '90s? I remember GPUs, ThinkPads and a lot of PC hardware were made in Mexico back then. And then suddenly, as if overnight, everything moved to China.
  - pkaye 3y ago
    That is true. But now China is getting expensive and the population is getting older fast and the Chinese leadership is getting less predicable. Mexico meanwhile is much younger and labor cost is lower than China. Its a neighboring country and part of a free trade agreement. Canada and Mexico now at par with China in their total trade with US. The threat of future pandemic and global conflicts and their impact on supply chains has made companies more cautious. Its of just offshoring, its instead onshoring, nearshoring or friendshoring. A lot of the stuff onshoring will be higher value or those of national security or highly automatable. https://www.visualcapitalist.com/us-largest-trading-partners-2022/ https://www.visualcapitalist.com/us-largest-trading-partners...
    - nevermindiguess 3y ago
      Doesn’t matter. It’s a cultural thing. Mexico can get as young as they like. Won’t matter. Look at the work culture in China vs Mexico. That’s where all the answers lie.
  - wmf 3y ago
    Yep. https://www.wired.com/2001/11/flex/ https://www.wired.com/2001/11/flex/
  - jonahhorowitz 3y ago
    Yes. Mexico was a manufacturing powerhouse until PNTR shifted all of that to China. [0] - https://georgewbush-whitehouse.archives.gov/news/releases/2001/12/20011227-2.html https://georgewbush-whitehouse.archives.gov/news/releases/20... [1] - https://en.wikipedia.org/wiki/Permanent_normal_trade_relations https://en.wikipedia.org/wiki/Permanent_normal_trade_relatio...
- ren_engineer 3y ago
  they are just using Mexico as a way to get around tariffs and other trade restrictions. On paper it might say "Mexico" is the biggest trade partner for the US, but the reality all the stuff is still coming from China with an extra hop to do final assembly in Mexico. China is doing the same thing with manufacturing in Vietnam, all the money still flows back to China in the end Mexico has none of the actual infrastructure or skilled workforce needed to be an actual manufacturing powerhouse that makes things from scratch
  - scarface74 3y ago
    And Apple did the same thing when Cook prostrated himself before Trump pretending like “Macs were being manufactured in America” when it was actually only a few Mac Pros and they were doing final assembly here.
  - moneywoes 3y ago
    What does the Vietnam hop enable, India?
  - mr90210 3y ago
    > Mexico has none of the actual infrastructure or skilled workforce needed to be an actual manufacturing powerhouse Care to share your sources?
  - shp0ngle 3y ago
    > China is doing the same thing with manufacturing in Vietnam, all the money still flows back to China in the end Eh they do a lot in Vietnam in reality. And yeah Chinese own a lot of these factories directly or indirectly, but a lot of the money (and the toxic fumes) stays in Vietnam.
  - lenkite 3y ago
    "Mexico has none of the actual infrastructure or skilled workforce needed to be an actual manufacturing powerhouse that makes things from scratch" What people forget is that starting with assembly is one of the basic things needed to get a leg-in into ramping up into a manufacturing powerhouse.
  - 3y ago
- throw_m239339 3y ago
  > Mexico is becoming the new China for manufacturing. Yes, people claimed that during the era of the maquiladoras... it has not materialized 30 years after.
WhyNotHugo 3y ago
With Biden repeatedly threatening to invade China and destroy the factories in Taiwan, it's clear Apple is just making sure they have a good fallback plan.
- bearjaws 3y ago
  > With Biden repeatedly threatening to invade China Has he actually said invade China? The most the US has said was when China invades Taiwan, the US will defend them.
  - JumpCrisscross 3y ago
    > Has he actually said invade China? No. Even with moronically-generous parsing, where Taiwan is considered part of China, there is no U.S. policy of invading Taiwan.
  - hackerlight 3y ago
    You have to parse through the rhetorical dishonesty to understand the meaning. In the mind of the radicalized Chinese nationalist, Taiwan is China (remember, they do not give a damn what the people inside Taiwan actually want, those people don't matter), so if Biden says that he will defend Taiwan if it gets invaded, that is equivalent in the mind of the nationalist to Biden saying he'll invade China.
    - jonhohle 3y ago
      The UN also thinks Taiwan is China.
      - KptMarchewa 3y ago
        "UN" does not think more than building does not think. It's an entity for countries to talk.
      - LtdJorge 3y ago
        But what id the stance of UN members on it?

pkaye 3y ago

Mexico is becoming the new China for manufacturing. Even many Chinese companies are building factories there. Also recently Mexico is offering work visas for workers from central America. Check out this Wendover video on it. https://www.youtube.com/watch?v=GXT46osICdY https://www.youtube.com/watch?v=GXT46osICdY

ChuckNorris89 3y ago
Wasn't Mexico like that in the '90s? I remember GPUs, ThinkPads and a lot of PC hardware were made in Mexico back then. And then suddenly, as if overnight, everything moved to China.
- pkaye 3y ago
  That is true. But now China is getting expensive and the population is getting older fast and the Chinese leadership is getting less predicable. Mexico meanwhile is much younger and labor cost is lower than China. Its a neighboring country and part of a free trade agreement. Canada and Mexico now at par with China in their total trade with US. The threat of future pandemic and global conflicts and their impact on supply chains has made companies more cautious. Its of just offshoring, its instead onshoring, nearshoring or friendshoring. A lot of the stuff onshoring will be higher value or those of national security or highly automatable. https://www.visualcapitalist.com/us-largest-trading-partners-2022/ https://www.visualcapitalist.com/us-largest-trading-partners...
  - nevermindiguess 3y ago
    Doesn’t matter. It’s a cultural thing. Mexico can get as young as they like. Won’t matter. Look at the work culture in China vs Mexico. That’s where all the answers lie.
- wmf 3y ago
  Yep. https://www.wired.com/2001/11/flex/ https://www.wired.com/2001/11/flex/
- jonahhorowitz 3y ago
  Yes. Mexico was a manufacturing powerhouse until PNTR shifted all of that to China. [0] - https://georgewbush-whitehouse.archives.gov/news/releases/2001/12/20011227-2.html https://georgewbush-whitehouse.archives.gov/news/releases/20... [1] - https://en.wikipedia.org/wiki/Permanent_normal_trade_relations https://en.wikipedia.org/wiki/Permanent_normal_trade_relatio...
ren_engineer 3y ago
they are just using Mexico as a way to get around tariffs and other trade restrictions. On paper it might say "Mexico" is the biggest trade partner for the US, but the reality all the stuff is still coming from China with an extra hop to do final assembly in Mexico. China is doing the same thing with manufacturing in Vietnam, all the money still flows back to China in the end Mexico has none of the actual infrastructure or skilled workforce needed to be an actual manufacturing powerhouse that makes things from scratch
- scarface74 3y ago
  And Apple did the same thing when Cook prostrated himself before Trump pretending like “Macs were being manufactured in America” when it was actually only a few Mac Pros and they were doing final assembly here.
- moneywoes 3y ago
  What does the Vietnam hop enable, India?
- mr90210 3y ago
  > Mexico has none of the actual infrastructure or skilled workforce needed to be an actual manufacturing powerhouse Care to share your sources?
- shp0ngle 3y ago
  > China is doing the same thing with manufacturing in Vietnam, all the money still flows back to China in the end Eh they do a lot in Vietnam in reality. And yeah Chinese own a lot of these factories directly or indirectly, but a lot of the money (and the toxic fumes) stays in Vietnam.
- lenkite 3y ago
  "Mexico has none of the actual infrastructure or skilled workforce needed to be an actual manufacturing powerhouse that makes things from scratch" What people forget is that starting with assembly is one of the basic things needed to get a leg-in into ramping up into a manufacturing powerhouse.
- 3y ago
throw_m239339 3y ago
> Mexico is becoming the new China for manufacturing. Yes, people claimed that during the era of the maquiladoras... it has not materialized 30 years after.

WhyNotHugo 3y ago

With Biden repeatedly threatening to invade China and destroy the factories in Taiwan, it's clear Apple is just making sure they have a good fallback plan.

bearjaws 3y ago
> With Biden repeatedly threatening to invade China Has he actually said invade China? The most the US has said was when China invades Taiwan, the US will defend them.
- JumpCrisscross 3y ago
  > Has he actually said invade China? No. Even with moronically-generous parsing, where Taiwan is considered part of China, there is no U.S. policy of invading Taiwan.
- hackerlight 3y ago
  You have to parse through the rhetorical dishonesty to understand the meaning. In the mind of the radicalized Chinese nationalist, Taiwan is China (remember, they do not give a damn what the people inside Taiwan actually want, those people don't matter), so if Biden says that he will defend Taiwan if it gets invaded, that is equivalent in the mind of the nationalist to Biden saying he'll invade China.
  - jonhohle 3y ago
    The UN also thinks Taiwan is China.
    - KptMarchewa 3y ago
      "UN" does not think more than building does not think. It's an entity for countries to talk.
    - LtdJorge 3y ago
      But what id the stance of UN members on it?