Two key words, wages and infrastructure. Western countries have the infrastruture but wages too high, devloping countries have low wages, but no infrastructure. While China have low wage and the effecieint infrastructure.
@@ThebigJJ621 China didn't have the infrastructure back in the 90s when they first moved there. I don't know why people keep bringing this up. India has a good 30 years of being in that sweet spot of much lower wages and near adequate infrastructure, while China is starting to become a middle-wage country with also growing consumer sentiment wanting them to move away. When Apple started it's factory in Ireland in the 80s, we had terrible infrastructure. We didn't even have a highway connecting our 2 biggest cities. But Apple moved here, then moved out when we became a high-wage country in the early 2000s. Keeping higher wage financial, marketing, server farms & tech-support services there, which I think Apple will do there too.
Wei Zhou Not true. If you see the data from Statista.. China is not really an "iPhone" nation, compared to the user of "Android" in China (even these Android phones are all mostly Chinese brands such as Xiaomi, BBK Group, and Huawei). The top countries which predominantly iPhone user are US, Japan, Great Britain, and Germany
All those companies that manufacture in China will probably never leave completely. China is itself a large market for all these products, so as long as it makes sense, companies will at least continue to produce for the local, and maybe regional market.
@@karthikj8969 That ship has sailed. China has all the technology it needs, and any new tech from the West/Japan/Korea can be easily copied or stolen. Plus, China has Ph.D. scientists of its own, many trained in U.S. institutions, in fact they are smarter & harder working than most U.S. students anyway so they're going to take over. I'm not glad or sad; it's just the reality. If the U.S. is serious about competing it needs to get rid of the wokeism and race nonsense in the schools and go back to fundamentals of science, math, history, English, etc.
Well yeah Cheap labor changes but for the country those factories will be assets for many years. That’s why we need more factories in the USA 🇺🇸 It’s a matter of national security and self sustainability
The video did not talk about the recent India Australia free trade agreement where Australia will be supplying rare earth metals India for refining and end use. The video did not talk about Indian conglomerates investing in electronics supply chain like smartphone display, semiconductor fabs, assembly and packaging and iPhone parts and chargers.
🤡🤡🤡🤡 western media hai na itna sach pacha liya hai wohi baadi baat hai acchi cheez inhe pasand nai buri cheez dikau inhe like poverty inki audience ko bada maza ayega dekne mai becoz yehi Sab chahte yeh log jabki India mai yeh sab nai hai
Not covered is that Indian bureaucracy is complicated with multiple department with overlapping jurisdiction. To get a single thing done you will need to get a permit from multiple government departments.
India has tons of archaic laws and the present govt scrapped a big bunch of them over the past few years. But that doesn't mean everything has been removed. Things are way better when compared to a decade back. The place where iphone's major factory is setup in India, is not new to mobile manufacturing and there is ample local talent with experience. Nokia had one of its biggest plant at the exact same place and had bussed people from the nearby city. Ericcson too had a plant during its heyday and even recently Motorola had a plant there and Moto's first flip phone was made there. That town has the potential and resources, but lacks infrastructure. Example - An expressway (connecting the plants to port) which must have been ready in 2014 is still stuck in limbo due to local politics. The plans are now back to drawing boards, with hazardous half constructed pillars just creating accidents. Politics in development is India's major bane. China with it's one party system doesn't have this.
@@Realitycheck18 True but several states in India will have an Iphone factory. Tamil Nadu, Karnataka, Andhra Pradesh, Uttar Pradesh, Maharashtra and Gujarat. They will have in-house accommodation so that the don't have to bus in local workers from a 50 mile radius.
@@truethat7681 And if my memory serves correct Foxconn sriperumpudur is building the accommodations or at least going to do it soon. But, this place isn't a brand new place created just for iphone / phone making. This place is an industrial area with a lot of local population already (it has a huge Hyundai plant as well) near a big city (Chennai). That is one of the 6 major cities of India and is a software industry and automobile industry hub. There isn't a clear place the where the city ends as the city's suburbs line up one after another and this place looks and feels more like another suburb of the big city. That city has almost 10 million population, and many who work here prefer to stay in the city as their spouse may work at a different part of the city and hence bussing is common. But creating accommodations specifically for iphone plant employees can be enticing and encourage more talented resources to join.
One thing is for sure In case of India, that is that the govt is gonna force apple to source more parts from local business. and this pressure will grow each year.
Lol, then what's the problem in it. As it's better for Apple and India that Sourcing parts from local business will be cheaper and easier. And it will create an eco system for other manufacturers. 🥴
>> ... govt is gonna force apple to source more parts from local business. That's what Apple was doing in China anyway.. Tim Apple in fact committed $270+B to train young, unskilled peasants from rural China and prop up China's young chip industry in 2016. As late as last November, Apple was backing a lesser-known Chinese memory chip start-up YMTC until the company was blacklisted by the US department of Commcerce.
Rome wasn't built in one day, It was built a little every day. Supply chains need to be diversified rather than completely eliminated. It's impossible to remove China totally. It needs to be diversified to ensure safety.
Meanwhile China is moving up the ladder. EV vehicles is the next revolution and China is already leading. So for China thats not a big deal if Apple start moving away
It's impossible to move out of china, Vietnåm, india needs high skilled workers(both countries), cheap labor,huge population(in case of Vietnåm and high manufacturing buildings which is impossible to make it.
Apple never said they would move out of China. They are setting themselves up for the next China incident where supply chain will be disrupted. They will continue to have capacity in other locations so they can meet demand.
Yes, you've been drinking too much Tim Apple outsourcing Kool-aid. You don't need a PhD in mechnical engineering to assemble iPhones -- likewise the average age of Foxconn workers putting together iPhones is only 23 -- they are young, unskilled, destitute laborers from rural China. Most of the high-tech, high-value manufacturing is still done outside China by Samsung, Qualcomm, SONY, TSMC, Micron, etc in the US, South Korea, Japan and elsewhere. China's domestic tech companies barely produce 10% of all chips produced globally, but imported to tune of $400B of chips last year for this reason
Samsung has been basing its production in Vietnam since 2008 and Vietnam's Thai Nguyen province is the biggest Samsung manufacturing site where flagship S series are made. It has just opened a new over 200 Mil R&D facility in Hanoi, if Samsung can do it in Vietnam then can Apple.
Are ab chhod yaar, har western media ke har video mein wo log Aksai Chin aur Gilgit Baltistan ko hata ke hi map dikhate hai. Ab bol bol ke chhod di maine to ummeed.
I hope so. Why wouldn’t you want nets? It stops people from committing suicide which is important. These people can leave at any time it’s not like they’re slaves, so I don’t see why they feel the need to commit suicide when they could just leave if they want too.
Ya Apple! Is there? I volunteer Sam makes our iPhones here in America for 2 Penny a phone! No nets needed! Besides Americans don’t jump, we shoot ourselves to commit suicide. I’m sure Sam will do it properly!
I think it would be nice If these countries could benefit from the diversifying. However, it took China years to achieve what they have now and their efficiency can be partly attributed to their government efficiency; both for good and bad. These countries can achieve these things but it would happen much slower because of their unique challenges which is non existent in China. Hate or love China; the people and the government gets things done, that’s why these Western companies keep flocking there
>> However, it took China years to achieve what they have now and their efficiency can be partly Apple needs to look at how Samsung pulled out of China to Vietnam. Vietnam didn't have much infrastructure or any existing supply-chain when Samsung started moving in. Vietnam ramped up quickly -- Vietnam's main exports were textfiles and food in 2015; by 2019, Samsung's output in Vietnam alone accounted for about 25% of their entire export. Samsung also contributes 25% of Vietnam's GDP. All this trainsition in 4-5 years.
Fun fact, China is Vietnam's number one import country Which means, whatever assembly factories you move out of China, will simply have to buy parts from China
@@malikkelly Yes because their plan is to diversify from China not to completely phase out China. The logic behind the original comment still makes no sense. Vietnams trading habits have nothing to do with Apples plan for parts sourcing.
If you are poor, you get rich by either making things or doing things, for folks who are richer. China has pretty much taken out the making things option by the sheer scale and efficiency of their manufacturing. Doing things usually involves immigration, which while beneficial financially to individual families, does not benefit the nation as a whole. A real bind for developing countries today.
Doesn't international offshoring , global capability centres and remote work buck this trend tho I mean you can still work for folks by still sitting in your home country .
Immigration has mostly benefitted receiving countries lol, New York is the most powerful city in the world bc of immigration. Immigration only leads to downsides if the immigrants are ideologically opposed to national values.
So these Chinese workers must be demanding actual, decent working conditions and actual working wages. I wonder if they still have those nets on the sides of the buildings the workers live to keep them from killing themselves.
Yes, please share the wealth to more of other platforms by bankrupt Apple Inc. Free market competition between multiple app store is good, which does not allowed by North Korea-esq Apple Inc.
Just to give everyone a cold shower. China is simply moving up the supply chain. In other words, instead of occupying assembly of Apple products, China is now occupying the supply of advance components such as chips and memory.
They are trying. But they have limited experience with advanced components and more importantly, not a lot of goodwill in terms of major international markets for their advanced products.
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BOE will be Apple's largest LED screen supplier and YMTC will be a major NAND memory chip supplier for IPhone. Both are Chinese companies. Apple is actually getting more and more dependent on China.
Apple is definitely trying to justify their stay in China by throwing more money at Chinese suppliers and sourcing more parts from China. I guess it's an extension of Tim Apple's $270+B "investment" made in 2016? or has he made other commitments to please Xi?
Why they couldn’t recreate that in the USA? That would help create more jobs. But I guess the products will be more expensive since they will have to pay more the workers here. In Asia, it’s way more cheaper to produce things.
They had its manufacturing in the US & Ireland in the 80s and 90s. They replaced those jobs with highly paid versions since. We should honestly be happy that happened. China won't get these highly paid alternate jobs.
The point of making it abroad is to cut costs and outside of US labor Laws. Domestic labor costs more which mean you have to pay more. ... and if you hate inflation then you'll hate domestic products
Every iPhone would cost about 8,000 dollars if they stopped using Chinese slave labor. They pay these people subhuman wages and work them like dogs. They also mine metals like cobalt for their batteries in Africa under child slave labor. Look it up if you don’t believe me. It was recently on Joe Rogan’s podcast. A guy went to the actual mine and filmed the kids all mining by hand for cobalt. People in Africa are shot or beaten if they don’t mine. And we all know the poverty level and slave wages in India. The poor class there is so beneath the higher classes like the middle class, that it’s considered dirty to even touch them or be in their neighborhoods. They are kept separate from other classes, or castes.
That might actually work. But Mexican labor I'd say is more skilled than chinese. Plus labour costs and the supplier base would havr to be built from scratch. Costly but I'd say worth it esp. in the long run.
The correct way of saying that is NOT "other countries simply can't math", anyone can have slave labor. The proper way of saying that is "other countries simply WON'T match for the health of their populace".
@@Arjun-ge1hi Indians are among the most lazy and entitled workers in the world There is a reason why the world chose China before India, in fact the world is currently choosing South East Asia over India
Foxconn is building hostels for approx 60,000 workers in addition to what they already have. But still it will be 1/4 in size as compared to China if we assume they already have 15000 workers. I expect that factory complex to produce more than 10% of all iphones in a few years. More than half of those produced will also be sold in India as India will become their third biggest market in this decade. There are also other iphone factory complexes in the line-up in India.
Apple has been enjoying ridiculous amounts of profits in over a decade straight, time for it to actually invest it in its own improvements like we expect a business should.
Apple has been "investing" in China for decades. In 2016, Tim Apple committed to spend about $270+B to train young, unskilled slave-wage earners from rural China and to prop up China's young chip industry -- as late as last year Apple sent American engineers to help design advanced flash chips for young Chinese startup YMTC until the company was blacklisted by the Biden administration.
Look at Zhenzhou's location, you have the shortest wait times for input components manufactured in south Korea & Japan, and you're also a central connection point within China's transportation network. It all sounds good, but show me an 'meaningful' alternative
This country seemed to prosper before Tiananmen Sq's massacres. We can do it again and find partners because China can't do anything without the support of the West. They spread propaganda to sound as if they're indispensable, no one is indispensable.
"show me an 'meaningful' alternative". Well, before Zhengzhou there was Shenzhen, so that is one alternative. Companies will move where it makes most economic sense.
South America is not as poor as you think it is. Africa has too much political instability i.e. your investment might just disappear due to riots or a new government.
@@spacetoast7783 US cannot decouple from China if they are scared to invest in other countries, all political instability comes from CIA America , so they need to stop attacking poor countries
Workers in Foxconn China have committed suicide because of working hours and housing.. it’s depressing how people are forced to live in small places just so the manufacturing plant can produce more units
Now if it only had the competency to put it together, which would mean enraging its bloated public sector bureaucracies from the national to city district level.
India lacks the specialized labour necessary to make this work on a large scale and in the short run. If it is resigned to importing components from China or elsewhere then these countries may deliberately supply defective or low-quality parts to eventually get Apple to move away from these destinations and return to China. India even needed to utilize foreign labour, including Chinese labour to help build the largest statue, Statue of Unity - to highlight it as an achievement by the ruling party.
@@hirenmehta9371 lol manufacturing iPhone and that don't require a degree in rocket science. Btw if india lacks according to you then ISRO is also a joke for you. Chuman indian hoke Indians ko hi downgrade kar raha hai Apple toh chu hai jo bina research me india me factory open Kiya hai multiple locations pe
After 2 years, this aged like fine wine. Hostels similar to china are being built at india at very rapid pace. Even state government is providing funds for them
Why can't we build these 'iPhone Cities' within the US? I think we have the resources for it and a lot of people would jump on board for a job and some housing accomodations.
In my opinion, American civilization should be preserved because it has a great impact on the development of science, culture and world civilization. This is a fact, although some countries may not like it. But unfortunately, America, which is the sum of all the races and civilizations of the world, has recently been threatened by a country like China, so the Americans must seriously advance themselves for years in terms of science, technology, economy, and military in order to stay away from these threats. How do you think Einstein was killed at a young age by a bully thief? In my opinion, a country like America is useful to the world and should be preserved. Of course, this is just my opinion.
Instead of trying to create a new iPhone city asap, why not focus on the management there and improve their conditions while slowly building the new cities.. maybe just me being immature and can’t see the whole picture
@@30250623 Plenty of countries want our mighty dollar. We are not stupid and won’t be bringing basic shops on minimum wage to our shores. India, Vietnam, Malaysia etc etc. You think we don’t have options where we get our products made.
@@jules263 yet all the parts still come from china. Don’t start complaining when “made in USA” costs u 5times the price and then go around the world whining. Can’t believe someone is more immature than me Funny really funny
@@30250623 Typical arrogance of the Chinese. You think we can’t source additional supply and labour lines without China. It takes time but alternatives will be found. Plus who are you going to sell these parts to? We own all the international patents. 🤙
China is a risky place to do business. Apple has been "talking" about diversifying their production for years. Foreign companies and foreign investors and bond holders are finally waking up to the risks of production in China. They are moving production to India, Viet Nam or back to their home countries.
Greetings from India Could u please show the right map, especially the Arunachal Pradesh, it is not a disputed territory , it autonomously belongs to India , way back from date India got independence.
Apple better move quickly to India and Vietnam to take advantage of the very cheap labour compared to China's labour cost. They will need the cost savings as Tesla new phone Pi will blow a big hole in Apple smartphone sales for sure.
Hey WSJ you should use correct map of India make changes. Hello Indian people please report this video so our voice is heard by these publication, make your move!!
If iPhone relocate manufacturing from China it will experience a decline in its share in the Chinese phone market. And it will regret for it will leave a market vacancy for Huawei and other Chinese phone brands
