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 ...
Will never buy either of them.
“The iPhone 11 starts at $699,”
Some fools actually pay that much for those toys?
That would buy a decent CCW sidearm.
The American left kind of forced that. Child labor laws, work and hour regulations, insurance requirements, taxes, social security and Medicare, potential lawsuits, environmental restrictions . . . . all these protections come with embedded costs. So business looked for places that don’t have those requirements and was able to arbitrage the disparity.
Why not make it possible that illegal immigrants are a relic of the past and have the opportunity to stay in their countries?
Move manufacturing to countries south of the border, all the way down to Montenegro and they will no longer feel compelled to leave their communities, except for a better job offer.
Canadians, largely, only come for a legitimate job offer or promotion.
Problem solved for a couple of generations.
I meant Montevideo...
Montenegro is in Europe, near Serbia and Kosovo. Your written tense is strange. Who are you?
Many on the right, even at FR, supported it. It was Bush who made MFN status with the Chicoms permanent.
I was in some of those debates with Freepers who supported outsourcing our manufacturing. One even called me stupid for choosing to pay a little more for American made. I wonder how that Freeper sees it now.
Add in the benefit of American tax payers paying for our infrastructure, military, and space program instead of Chinese tax payers paying for their infrastructure, military, and space program while we borrow money to pay for their goods.
Very true! Just another reason why the 17th Amendment needs to be repealed and the power taken away from the parties. These circumstances would change immediately
Twice? If you are going to WILDLY exaggerate beyond belief then why not say three times, 10 times more?
Fixed it.
If that is true by all means Apple should move manufacturing to USA. So why Apple has not done it?
In my thinking, products are best manufactured in countries where there are large sales demand of the product. That eliminates shipping cost of finished product
APPL maximizes profit to such and extent if making something in country X is .0001% cheaper than if Made in USA they will do it. A tariff, even a small one, will elimnate that small minded anti AMerican decision making.
Makes no sense to me that Apple sends jobs abroad for a mere 3% cost differential. I have 3 i-phones for family members, but I use a Android made by Motorola. It was much cheaper.
Exactly, it does make no sense. It only make sense to ivy league bean counter sh!tbirds that hate America.
But what about the children in China!!
Where will Apple get the slaves needed now?
I see a lot of auto parts that have moved on from China.
To India, Indonesia, and Vietnam.
It’s continuing the low wage chase that has gone USA>Mexico>China>
***AMEN***
I hope eventually the IRS crawls up the ass of anyone with anything made in China, after the CIA gets done with them. I loath it when I have no alternative.
We need to make our tariffs with regard to *any* nation equal to the *highest* tariff they put on anything of ours.
First and foremost we need to penalize the HELL out of anything imported that could, and should be made here. And
Tariffs, *NOW*. They, along with the Saudis are our existential enemies.
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