Inside Apple’s and Samsung’s Supply Chain Shift Away From China | WSJ 

It’s good to diversify productivity stations. I think it’s a forward thinking mentality. Hopefully prices can still remain cheap and inflation is not a major problem.

This is likely the start of how global manufacturing works. That is, in about 20 years, when India and Vietnam no longer have very cheap labor and no longer have a need for large scale manufacturing, these companies are going to find other countries. Then, more countries, And on and on.

Retiring in 20 years? Due to inflation, you may need upwards of $2.6 million to maintain your existing lifestyle, with the ongoing effects of high inflation, lower forecasted stock market returns, and stagnant wages, achieving a secure early retirement could be more challenging than ever before

The iMac I bought last week says it was made in Thailand. Was surprised to see that.

Great reporting and just the beginning.

There's no mention in this video about another major reason why foreign companies getting out of china, namely it's increasingly militarily aggressive buildup and tone, talk of war with America and invading Taiwan. Who'd have thought that harassing and threatening your business partners would result with them leaving to do business elsewhere? Duh ...

Two main reasons, 1) their cheap labor is no more 2) everyone expected a globalized China to be more transparent and liberal but the exact opposite is happening

Due to the strong demand to Chinese local brands, almost nobody buying Samsung in China, sales volume of Samsung phones is really low, there's no reason for it to stay in China.

Good.

Great news for India

Samsung is the largest investors in Vietnam. Vietnam politics is stable and reliable compare to China. Many young Vietnamese are learning Koreans and Japanese because they see a stronger business relationship in the future.

That is a smart move, since the trade war, people in China are starting to support their local brands, both Samsung and Apple has been losing their market share in China, so it is reasonable for these 2 companies to move production else where and just focus selling their products on western markets.

I hope they are also developing recycling capabilities at these locations. If not, that should be a priority and would provide additional diversification.

This is a very good video. It shows why companies must diversify in order to survive, while not pulling out . Its not really human rights but governments policies, high taxes and labor shortages are just a few reasons why companies must source from many other places and find the possible route to lower costs and earn a profit. Samsung and Apple made some smart choices

Brand, chip market competition is changing the supply chain game as well...

" thats a very good & very wise move "!

great job dragging out a headline into a full blown 6 minute, while sounding serious. BSing those essays in college was spot-on preparation for this job.

Vietnam welcome you ❤

This is common knowledge at this point. This video should have come out 2 years ago or more.

this is a must

Although India and Vietnam have their own set of issues internally, they are very neutral countries.

When they were told to bring their manufacturing to America they said it was impossible because of "highly specialized and delicate supply chains in China". Why can they easily relocate to other Asian nations then....?

Good Thinking

Thnx for showing correct map of my country.

Great move to manufacture in Vietnam

I watch WSJ everyday, when getting up, resting mid day, doing housework, sleeping. ❤🎉.

Interesting

*Watching this on my amazing HUAWEI P50 Pro.*

The best way to secure component is having facilities closer to home. Economically speaking, this isn't the best deal for those larges companies. China is and will remain one of the biggest manufacturer for Apple and Samsung, even though they chose to move their facilities from China, needed components are still manufactured there. Moreover, logistic wise China has a big advantage if you compare to India or Vietnam, China has airports, seaports, roads. It is very convinient to order from China and Chinese workers are very used to ship goods across the world. India and Vietnam need to catch up on this level. Sourcing from these countries will be another level (I work in the supply chain area and trust me when I have to order goods from China and India, it is not the same) It would be interesting to follow how this will grow.

Hopefully Samsung and Apple would consider Malaysia as the best destination for their semiconductor manufacturing. Malaysia has a lot of expertise in the industry with the industry already been in the country for over 50 years

My samsung S22 ULTRA was made in Korea, this video Is so interesting

respect

Apple and Samsung’s bigger problem is not operation in China, but the competition from Chinese phones. They too will move to India and Vietnam to compete.

Japanese co. also moving out and given huge incentives in doing so.

Bing chilling moment.

SUPER 😊👍

While India's contribution has increased it still falls really short in terms of manufacturing the important components such as chips and that is a problem that these companies and the Indian govt need to address in order to exploit the cheap Indian labor market. 6:32

As an Indian I fully support deepening cooperation b/w India and America. 🇮🇳♥️🇺🇲

GOOD. The world needs to wake up.

What do i need to learn so that i can be able to make stuff like this

I said this in 2014-2015 in supply chain class when they were teaching us to go sole source for economy of scale. I was like shouldn’t you have competition and risk mitigation? But my teacher just said you save money going sole source. Well here we are. Sole source in climate chain and political instability is not smart. I specifically said to move to India because they respect intellectual property. Although China is having conflict with India on the boarder who knows what will happen in the next decade. They are just chasing low labor costs ie Vietnam. I guess the building costs are low enough that just moving every 10-20 years chasing low labor the math adds up. Pretty soon climate change is going to disrupt a lot of shipping. Shipping won’t be as cheap.

End of the day it’s about more profits and cheaper labor 😅

it's interesting that there's no mention of the OEM/ODM companies that are the actual manufacturers for these companies, and that they also manufacturer for companies like Sony, LG, Asus, MSI, Lenovo, Philips, HP, etc...

Nice

Samsung was out competed by Huawei. For similar Android phones, the Chinese would choose Huawei Android smartphones over Samsung.

Funny thing is that a lot of the factory in Vietnam are owned by the Chinese. Its their strategy for the trade war that's taking place right now. WSJ got to do a better job for getting the truth to the public. Any manufacturer in South East Asia will understand what I'm saying. 😉

Smart move

Oh😮

One major problem with outsourcing is security. Imagine what would happen if war broke out between America and China and most of America’s industry is in China.

Why not move manufacturing back to the USA ! Print the US dollar and keep it too and for the first time after a CENTURY you get to have a reliable MADE IN AMERICA product via robots and AI, that way Americans get free money on behalf of USA Machines Corp..

Good

Also how much % of NAND capacity of Samsung is in China

It is interesting to think why it took them so long to realize that they should have their manufacturing facilities in different locations.

Labour costs are also going up rapidly in China. Most facilities in Vietnam are actually owned by Chinese companies. Future manufacturing cheap goods will all be made in south east Asia for cheaper labour

Best out of it.

i did not expect WSJ to be correct but just FYI ... wrong map of india

What you didn’t share was Samsung losing market share in China

Not just Apple and Samsung, other International Brand names are moving out of PRChina, to avoid Sanctions and Higher Tariffs. But there are many still International Companies have decided to stay in China and even increased investments into PRCHINA, esp. those involved in Chemicals Manufacturing and Chemicals Processing, as many such industrial products manufacturing would find it difficult to be re-located & be accepted elsewhere nor even back to their own countries of Origins, as manufacturing such products, due to their potential risks of pollution and environment degradation issues can no longer be tolerated, except in PRChina.

Just 15 years later? Come on, that's a long time in the tech world.

Except the OEMs moving to Vietnam are Chinese companies now using local labour to reduce cost...

India is on the path to more per capital income and prosperity. Apple's brand prestige can serve it lot in india

I have stopped purchase of any Korean products in my household. One after another failed or stopped functioning long before similar products of Japanese makes would last. At this rate, I will even use Chinese makes as they will at least last as long but are cheaper.

4:12 - wow why did they build it so wavy? 😭

As it should be!

I wonder when Africa will be the manufacturing hub of the world. In the 2050's? The 2070's? Even with automation probably eventually negating geographic differences, Africa seems like a potential huge focal point for future manufacturing industries.

Isn't this the strategy of the United States? Apple and Samsung are both forced to do so.

Good luck

This is quite normal as i read this new before when they moved their US and korea factory to China. After 10 years i will read them moved their factory again out of south east asia to africa or other country.

WSJ giving a part of India to china and Pak as saying sorry ig... (Indian map is incorrect!)

As a consumer, I hate purchasing products from China. I would definitely prefer to buy products from Viet Nam, India, and many other countries.

Why this background music? People with hearing impairment are not able to hear the dialogue.

Looks like top VPs have seen the movie Train to Busan...

MORE COMPANIES ARE GOING TO LEAVE CHINA

Samsung smart phones have no market in China anymore , so they moved out all their phones factories . Apple will maintain a big portion of their production facilities in China if they still want to sell their phones in China .

3:57 20%

Their market shifted away too;)

Anticipate a future where mobile device prices are expected to soar twofold, while our earnings, impacted by inflation, will command only half of their current buying power. Despite these economic shifts, it's unlikely that corporations will compromise on their profit margins. This could potentially lead to a decline in sales for major players like Apple and Samsung.

Past: Apple was known as the innovator. Present: Apple is now known as playing copycat.

🎉🎉🎉

There were quality issues with Iphone manufactured inVietnam.

The Indian map is wrong . Please use the correct one which includes Kashmir .

India's map is not correct... Please take action...

Political stability needed for econok8c growth

Decoupling is happening by default , slowly but surely. And it may be for the better for both sides🤔

Vietnam , Thailand , Indonesia , India , Mexico , Czech Republic , Poland & certain Africa nations are much safer , reliable , IP respected & smoother supply chain manufacturer bases to be consider! 🌏

Fast forward to 2050: Apple and Samsung moving to Nigeria because of Indian government's stance against USA.

Go Samsung 📈👌

They don't even say China's side of the production. Although Samsung had a 70% decrease in employees, 50% of production is still in China, sounds like an increase in efficiency as well with some politics that decided this. A 25% increase of suppliers for Vietnam looks cute on paper but China is listed as more than 152 of those suppliers of 200, that's a decrease in China's eyes of 3% in 4 years, and while those 4 years there were shutdowns. In reality though, all the infrastructure must be complexly put together in 1 area to work efficiently and smoothly, it will take them decades and decades to build that infrastructure in other locations while the market for those countries do not support that investment. And while at that, China has the infrastructure already there with the market to support it; as long as China is able to stay reliable for the next 5 years without interruptions, there will be little reason to actually go elsewhere without it continuing to cost them billions and billions of dollars to build infrastructure elsewhere. India also forces companies to produce within their country to sell in their country, hence the 2% market share there. With China investing heavily in AI, robotics, and automation; while largely leading in manufacturing infrastructure innovation, China will have quite an edge for the decades to come. While India & Vietnam are looking to increase workers and expertise (For example, 4 years of engineering + Another 4 - 10 years for mature competency inside the field), China is already working on a process to automate most of it and mass implement with the most expertise already there. India & Vietnam have quite a mountain to climb against a competitor like China.

I love my Samsung products…sadly tho imo with each new update Samsung doesn’t seem to be as great as they were years ago

i believe Samsung not only has factory in CHina, India, Vietnam, but also Indonesia, Brazil and their hometown South Korea

❤️

India’s cellphone market is for $199 and I think Tim Cook is just shifting the focus a bit. Moving 3% of manufacturing out of China to India is helping the politician fulfilling the promise to derisk. Right save 3% risk from made in China 🎉

What the WSJ is not telling you is that labour is no longer cheap in China so semiconductor manufacturers have moved to cheaper countries like India. China is transitioning to a middle class domestic economy so they don't need to export as much.

Yaaaaaay 🤸🤸🤸🤸

Just do it

It is not surprising at all that Samsung lost the Chinese market. Previously, Samsung held nearly 20% market share in the Chinese mobile phone market. However, in 2017, due to widespread quality issues with the Galaxy Note 7 batteries catching fire, Samsung initiated a global recall to address the problem. All of them? Yes. Except, of course, in China! This ultimately dealt a significant blow to Samsung's market share in the country.

Might be misleading to say the phones are manufactured in China, India, and Vietnam. The phones are 𝘢𝘴𝘴𝘦𝘮𝘣𝘭𝘦𝘥 in those countries. Components come from elsewhere.

WSJ didn’t say is Samsung’s China market share disappeared

Companies and goverments both moves forward but only civil people only have to suffer

Apple for sure can build massive factories in India but to capture market shares from other manufacturers especially Samsung is impossible for them at the moment or in the future if we looked at Apple devices prices. Unless if in the future Apple start to release budget Apple devices,maybe then they can capture more than half market share.But for now,impossible😂