Posted on 10/26/2022 7:18:48 PM PDT by libh8er
By a dusty stretch of the deafening road from Chennai to Bengaluru lie three colossal, anonymous buildings. Inside, away from the din of traffic, is a high-tech facility operated by Foxconn, a Taiwanese manufacturer. A short drive away Pegatron, another Taiwanese tech firm, has erected a vast new factory of its own. Salcomp, a Finnish gadget-maker, has set one up not far away. Farther west is a 500-acre campus run by Tata, an Indian conglomerate. What these closely guarded facilities have in common is their client: a demanding and secretive American firm known locally as “the fruit company”.
The mushrooming of factories in southern India marks a new chapter for the world’s biggest technology company. Apple’s extraordinarily successful past two decades—revenue up 70-fold, share price up 600-fold, a market value of $2.4trn—is partly the result of a big bet on China. Apple banked on China-based factories, which now churn out more than 90% of its products, and wooed Chinese consumers, who in some years contributed up to a quarter of Apple’s revenue. Yet economic and geopolitical shifts are forcing the company to begin a hurried decoupling. Its turn away from China marks a big shift for Apple, and is emblematic of an even bigger one for the world economy.
Apple’s packaging proclaims “Designed by Apple in California”, but its gadgets are assembled along a supply chain that stretches from Amazonas to Zhejiang. At the centre is China, where 150 of Apple’s biggest suppliers operate production facilities. Tim Cook, who was Apple’s head of operations before he became chief executive in 2011, pioneered the company’s approach to contract manufacturing. A regular visitor to China, Mr Cook has maintained good relations with the Chinese government, obeying its requirements to remove apps and to hold Chinese users’ data locally, where it is availabla
(Excerpt) Read more at economist.com ...
I have no problem buying an iPhone 15 manufactured and assembled in India or Vietnam. Neither is as openly hostile to the US as China, and we should be glad about anything that negatively impacts China’s wealth and its ability to make war against us.
China saw this coming and bought up much of the production capability in Vietnam, the Philippines and other locations. So your shirts, pants, socks, shoes and iPhones will still be made by China.
Who sent all the manufacturing to China ? The USA ! Everybody was happy to get cheaper goods from China and US companies were happy to make bigger profits . Now that China has become a success story and a threat economically to the USA some folks want to boycott their products ??? Crazy man .
I do and so does every patriot. Make it here. Do it now. Put a tariff on the import of all electronics. It's the only way to be secure.
It’s not crazy. Make it here says every patriot.
We never voted on it. Both parties are anti tariff. BOTH.
Who is going to make everything the USA imports from China for the same price ? Are we going to hire illegal aliens ?
Per phone it wil cost more made in the USA, about 3% more . Worth it.
Worth every penny of increased cost!!
If we assemble Apple i-phones in USA, you would need an income of $500,000/year to afford an i-phone. Why you wish to deprive me of future i-phones? My grocery store can’t find stock boys at $16/hour to START. Wonder how much it will cost to hire a skilled assembler in USA (assuming we can find enough) able to work with intricate electronic parts.
The cost of labor per iphone is about $20.00/iPhome. So made in the USA: let’s double that to $40.00/iPhone. Each iPhone costs around $800.00. A $20.00 increase is around 3%. No big deal.
Your 3% estimate is joke of the year.
The cost of labor per iPhone is around $20.00/phone made in China. Google it. So how much would labor be PER PHONE be if made in the USA? $30, $40, $50?
The iPhone 11 starts at $699, and the most expensive model costs $1,449. To make these phones, Apple spends about $240 on parts and $4.50 on assembly costs, according to IHS Markit.
You have to figure in the US they are dealing with HUGE regulations, OSHA, matching payroll taxes, workers comp according to payroll employee benefits, I am thinking about $100.00 cost per phone STILL worth every penny!!
$100/phone would be the very upper end.
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