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> Brazil and India production are just to satisfy Brazil and India requirements I agree that this was initially the case, but China's zero Covid policy factory
by GeekyBear 2y ago
> Brazil and India production are just to satisfy Brazil and India requirements
I agree that this was initially the case, but China's zero Covid policy factory shutdowns led Apple (and others) to start moving production out of China in earnest.
India, for example, is now producing current generation iPhones for export, not just makung the cheaper variants for sale inside India.
> One of the biggest shifts in manufacturing has been reducing dependence on China. The magnitude of that move was reinforced today with news that India-made iPhone exports were said to have jumped by a third to nearly $6 billion in value in the six months to September.
https://www.bloomberg.com/news/newsletters/2024-10-29/apple-boosts-india-iphone-production-to-6-billion-in-shift-away-from-china https://www.bloomberg.com/news/newsletters/2024-10-29/apple-...
Apple has been moving to shift a significant portion of manufacturing out of China for some time now.
> Apple Aims to Make a Quarter of the World’s iPhones in India
https://www.wsj.com/tech/apple-aims-to-make-a-quarter-of-the-worlds-iphones-in-india-ab7f6342 https://www.wsj.com/tech/apple-aims-to-make-a-quarter-of-the...
- seanmcdirmid 2y agoThese are still future looking and it will take Apple awhile to get there. They won't be there next month, or even a year from now, so American consumers are going to have to eat the tariff for a year, probably two, while supply chains are reformed. This isn't going to happen overnight. All the other phone makers are going to be in the same boat, so the pricing power will be there to pass tariffs on to consumers (and the few that can avoid them will take the extra profit like American steel companies are now).