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(CNBC)   Apple begins to move production of the iPhone from one country with no potable water to another country with no potable water. But, at least the labor is cheap and plentiful   (cnbc.com) divider line
    More: Interesting, IPhone, Apple Inc., Smartphone, flagship iPhone, Apple's main iPhone assembler, IPod, JPMorgan analysts, new iPhone  
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733 clicks; posted to Business » on 26 Sep 2022 at 9:41 AM (9 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



15 Comments     (+0 »)
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2022-09-26 9:22:40 AM  
Wonderful, a company that needs suicide nets on its buildings is expanding into a country whose GDP/person is 2.3 iphones per year
 
2022-09-26 9:26:40 AM  
Flint Michigan?
 
2022-09-26 9:26:42 AM  
Shareholders rejoice!
 
2022-09-26 9:53:32 AM  
That's a pretty expected reaction to China's stubborn refusal to move off its Zero-Covid policy. You can't build global supply chains and prepare for product launches when half your manufacturing base gets put into lockdown for a month or longer.

This party meeting in October might have more fireworks than normal.
 
2022-09-26 10:00:40 AM  
No, Foxconn is moving assembly to a host of countries to get out from under two problems - Covid lockdowns and US tariffs.  Batam, Indonesia has become a nexus of assembly for this reason.
 
2022-09-26 10:27:33 AM  
Yeah, because all the other manufacturers of electronics Re better.

Apple BAD! because reasons!
 
2022-09-26 10:33:01 AM  
I used to source materials out of India.  Used to.  They are the most unreliable of any of the foreign manufacturers and that is saying ALOT.
 
2022-09-26 10:45:27 AM  

SirDigbyChickenCaesar: I used to source materials out of India.  Used to.  They are the most unreliable of any of the foreign manufacturers and that is saying ALOT.


I frequently have items shipped from the US and Taiwan to China and India.  The stuff to India is always a week later to arrive than it is for China because it gets stuck in customs in India.  Customs moves much slower in India.
 
2022-09-26 11:17:06 AM  

soopey: That's a pretty expected reaction to China's stubborn refusal to move off its Zero-Covid policy. You can't build global supply chains and prepare for product launches when half your manufacturing base gets put into lockdown for a month or longer.

This party meeting in October might have more fireworks than normal.


This has nothing to do with COVID, Apple/Foxconn has been planning on doing this for at least 3 years now, always with the same 'by 2024/2025' time frame. From 2019 - https://www.theverge.com/2019/6/19/18691132/apple-china-manufacturing-diversify-india-vietnam-trade-war-tariffs
 
2022-09-26 12:31:55 PM  

SMB2811: soopey: That's a pretty expected reaction to China's stubborn refusal to move off its Zero-Covid policy. You can't build global supply chains and prepare for product launches when half your manufacturing base gets put into lockdown for a month or longer.

This party meeting in October might have more fireworks than normal.

This has nothing to do with COVID, Apple/Foxconn has been planning on doing this for at least 3 years now, always with the same 'by 2024/2025' time frame. From 2019 - https://www.theverge.com/2019/6/19/18691132/apple-china-manufacturing-diversify-india-vietnam-trade-war-tariffs


Initially, they moved some production to India as a response to India putting large tariffs on devices made outside of the country.  They expanded their plans during the Trump trade war years, and expanded them again after the Covid lockdowns in China cut into production right after the introduction of last year's product line.

They went from manufacturing a few things outside of China, to planning to make at least a portion of everything outside the country.

Companies Are Fleeing China for Friendlier Shores
 
2022-09-26 12:55:13 PM  

BullBearMS: SMB2811: soopey: That's a pretty expected reaction to China's stubborn refusal to move off its Zero-Covid policy. You can't build global supply chains and prepare for product launches when half your manufacturing base gets put into lockdown for a month or longer.

This party meeting in October might have more fireworks than normal.

This has nothing to do with COVID, Apple/Foxconn has been planning on doing this for at least 3 years now, always with the same 'by 2024/2025' time frame. From 2019 - https://www.theverge.com/2019/6/19/18691132/apple-china-manufacturing-diversify-india-vietnam-trade-war-tariffs

Initially, they moved some production to India as a response to India putting large tariffs on devices made outside of the country.  They expanded their plans during the Trump trade war years, and expanded them again after the Covid lockdowns in China cut into production right after the introduction of last year's product line.

They went from manufacturing a few things outside of China, to planning to make at least a portion of everything outside the country.

Companies Are Fleeing China for Friendlier Shores


Africa is the last place on earth with plenty of people (workers) who could still do the work at a relatively low labor cost. Africa also has a lot of natural resources (no need to import) and skilled workers. But Africa is not a singular nation. It's made up of 50+ fractious nations. That could benefit Apple and others by pitting one nation against another, much like how some corporations pit one state against another to extract better deals here in the US.

So I envision a migration of manufacturing to Africa within the decade.
 
2022-09-26 1:21:49 PM  

BullBearMS: they moved some production to India as a response to India putting large tariffs on devices made outside of the country


That was my understanding of things. I know Harley Davidson was kept out of the market there with 60% customs tariffs and 30% tax, effectively doubling the price of bikes that weren't made in India.

Is the tax on imported smartphones outrageous?
 
2022-09-26 1:51:42 PM  

mrmopar5287: BullBearMS: they moved some production to India as a response to India putting large tariffs on devices made outside of the country

That was my understanding of things. I know Harley Davidson was kept out of the market there with 60% customs tariffs and 30% tax, effectively doubling the price of bikes that weren't made in India.

Is the tax on imported smartphones outrageous?


I don't remember the percentage, but it was enough to make them decide they had to either move production or give up on making sales.  I believe the same thing had previously happened in Brazil.
 
2022-09-26 1:57:39 PM  

BullBearMS: I believe the same thing had previously happened in Brazil.


Yes, Brazil has such high taxes on imported electronics that the iPhone has minimal penetration into that market. There can be dozens of Android phones made locally but the iPhone is expensive because it has to be imported.

Brazil was where Microsoft started making versions of the X-box in the country and then dominated the video game market (like over 70% or sales or something like that) because Sony couldn't compete on price.
 
2022-09-27 3:59:23 AM  
Nobody else has mentioned this alleged potable water problem. I guess Stubmitter is just trying to meet his quota.
 
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