3 ms·

Right now, everyone at Apple and everyone in the USG knows that an all out trade war (or, heaven forbid, war war) between the US and China means that the head a

by sneak 3y ago

Right now, everyone at Apple and everyone in the USG knows that an all out trade war (or, heaven forbid, war war) between the US and China means that the head and body of the sometimes-largest US company get severed. It behooves Apple and everyone on Team USA to do everything possible to make Apple be able to survive a corporate beheading ifwhen they become unable to manufacture in China. They’ve started moving AirPods (India and Vietnam), some iPhones (India), and now iPads (Vietnam). Apple’s scale is immense, and a full replacement strategy is maybe the largest project they have ever undertaken, and certainly the largest that doesn’t get announced as some cool new product.

Morte42 3y ago
I doubt it has much to do with any impending war, after all Apple is moving to Vietnam with the assistance of a Chinese company that has been established in Vietnam for decades. China's relations with Vietnam go back millennia, they even provided Vietnam with weapons and training during the their wars against France and the US. If anything China is trying to establish itself in Vietnam before anybody else can. Vietnam, Bangladesh, Mexico and Brazil are all increasingly entwined with China when it comes to offshoring cheaper and simpler manufacturing. Expect the above nations to rapidly replace Made in China for many goods like batteries, toys, clothing and much more. In 2018 China's trade balance accounted for 0.66% of their GDP. In 2019 it was 0.93%. In 2022 it leapt to 3.21%. In the next couple of years it will likely return to around 2% meaning that the domestic Chinese economy is responsible for adding around 98% of the value to China's GDP every year, the sum of all of China's international trade balance adds 2%. Being the Worlds factory really isn't all its made out to be, China needs to reform itself to make profitable goods not cheap ones if it wants its international trade to be as lucrative as the rest of its economy. They had a plan for 2025 but covid happened so its hard to see how much they were able to offshore, I believe clothing manufacturing has been reduced dramatically in China and they are making fewer batteries but otherwise they are probably still in the cheap industry rut.
theGnuMe 3y ago
It could be cost, China might be more expensive than Vietnam. I would think cost may play a role.
- treprinum 3y ago
  Chinese workers are now more expensive than Eastern European ones, Indian swengs are more expensive than Eastern European devs as well.

by sneak 3y ago

Morte42 3y ago

I doubt it has much to do with any impending war, after all Apple is moving to Vietnam with the assistance of a Chinese company that has been established in Vietnam for decades. China's relations with Vietnam go back millennia, they even provided Vietnam with weapons and training during the their wars against France and the US. If anything China is trying to establish itself in Vietnam before anybody else can. Vietnam, Bangladesh, Mexico and Brazil are all increasingly entwined with China when it comes to offshoring cheaper and simpler manufacturing. Expect the above nations to rapidly replace Made in China for many goods like batteries, toys, clothing and much more. In 2018 China's trade balance accounted for 0.66% of their GDP. In 2019 it was 0.93%. In 2022 it leapt to 3.21%. In the next couple of years it will likely return to around 2% meaning that the domestic Chinese economy is responsible for adding around 98% of the value to China's GDP every year, the sum of all of China's international trade balance adds 2%. Being the Worlds factory really isn't all its made out to be, China needs to reform itself to make profitable goods not cheap ones if it wants its international trade to be as lucrative as the rest of its economy. They had a plan for 2025 but covid happened so its hard to see how much they were able to offshore, I believe clothing manufacturing has been reduced dramatically in China and they are making fewer batteries but otherwise they are probably still in the cheap industry rut.

theGnuMe 3y ago

It could be cost, China might be more expensive than Vietnam. I would think cost may play a role.

treprinum 3y ago
Chinese workers are now more expensive than Eastern European ones, Indian swengs are more expensive than Eastern European devs as well.