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

Depends on what is made. Labor is a big component of things like clothing. When you make computer chips or machinery, its actually the price of equipment, technicians, and electricity that matter a lot more. Look at a car factory today, a newer one--many robots, few workers. To prove my theory, find the lowest cost country in terms of dollars per hour--how many chips, computers, cars, steel are they making? China's advantage was never only in cheap labor--it was cheap labor, cheap electricity, and tons of infrastructure investment--airports, ports, railways, highways, and quick import/export.

Vietnam will never get trade war with USA, manufacturing long time in Vietnam is smart 😊

China is still numbe one because of well oiled supply chain and high skilled workers, cheap labour is no more a big factor

​@@nguyenquang3194Vietnam is also a communist country, which the USA doesn't like. So never know what could happen in the future.

It's all just a tax and labour costs...

It might not be cheap iPhone anymore, since ship outside of China a single screw might cause $1 instead of $.001 within China. Just a example, there is no country is big as China can has everything/supply chains that cover everything. So the shipping cost will go up add to the material costs. iPhone will sell more expensive over time. Time will tell my hypothesis

Prices in manufacturing will remain cheap, resell only companies knows.

Yessir, let the iPhone be cheaper and let the labor die of hunger from cheap and unequal pay from a trillion dollar company, YAY gotta have the iPhone at all cost

Who cares, when does manufacturing come back to USA? Why would I now want it to go to Vietnam or India?

@@jie1379 I have been paying more for ‘not made in China’ for years. Means I can sleep easy knowing I don’t support slavery, organ harvesting, Communism in general.

@Leonardo Scott Such considerations can certainly have a role when I think about whether I ought to buy into a share. But I never purchase purely on that basis, i always have to seek the adv!ce of my financial-planner who has helped me gain $985k in a well-diversified portfoIio that has experienced exponential growth

@Kang Minsu Personally I work with Viviana Marisa Coelho a registered Investment advisr. Quite renowned, search her name to get in touch

2.6 million is a ludricous amount of money from my PoV.

@@guisampaio2008it’s a bot

why they have more factories. i have a razer mouse thats made in China. but the exact same mouse is also made in Vietnam. nothing surprising about any of this

Assembled maybe. The design was done by the company.

The US is trying to block China from any advanced chips.

Likely to last longer !

@@Rusty_Gold85 and here we have a nother sinophobe. 90% of your stuff in your house or that you buy is made in china. you buy it because you think its good quality right? so stop crying about china.

also because there are much more affordable options.... fashion is expensive.

If govt bans the product its doom for apple 😂😂😂😂

which are why copied models after internal workings plans and software is copied and created . Even the stores look like Apple stores

중국인들은 애플은 구매하지만 삼성은 절대 구매하지 않는다. 중국인들은 테슬라는 구매하지만 현대,기아자동차는 절대 구매하지 않는다. 그들은 미국과 싸우는척을 하지만 전세계에서 잘 팔리고있는 한국의 제품들은 최대한으로 절대 구매하지 않는다. 😅 😂 😊

아주 역겨운 이중성을 가진 민족이다. This is fact.

Well summarized

Yep President Bush said a richer China would be altruistic. He was wrong

@@again5162 It is more altruistic. China actually does help alot. It is just not reported by western media... and debt trap? Loans from China come at 2-3% interest rate.. western loans come at 12-25% interest rate. Want to beat China.. offer a better deal.

@@nickl5658 Yes, China is honestly the most competitive and that's why countries choose China. Debt Trap diplomacy is fake, it's just propaganda on West's side.

SIR MY INDIA IS THE REAL SUPERPOWER 🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN CHINA PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳

still a communist country.. btw with the surge of manufacturing in vietnam, they had to borrow electricity from china

Also, Vietnam is an attractive country for Korea because Korea and Vietnam are culturally close.

@@AhKaSoom😂😂Is Vietnam culturally close to South Korea? 😂 Are they all unable to understand the history of their own country?

stable？reliable？ really？😮

🤡🤡 apple phones still represented almost 23% of the market share in China

I once saw a survey on Chinese consumer preferences. Its shows that other than electronics, Chinese prefer western brands, especially vehicles and clothing.

@@sengwesetogile6054 German cars are very popular in the Chinese market, but in recent years, Chinese brands have caught up. A significant portion of the best-selling cars in the Chinese market this year are from domestic brands, with the BYD Qin Plus being the sales champion.

@@sengwesetogile6054 that statement could be true years ago but not anymore

samsung only assembles in india . not manufacture

Tech recycling is already centered in Indonesia and Malaysia, so this is already built-in to some extent.

"and would provide additional diversification." That's adding cost, not diversification.

@@wisenber not if they can use the recycled materials, that’s generating their own supply chain. Also could sell recycled materials…

@@RealMattHaney They don't make that, as it's much lower margin. Lowering your profit margin isn't the sort of diversification anyone wants to invest in.

India is the second worst polluter in the world. So we should work on that.

in the factories you go, nguyen

It’s never about human rights. It’s always about government stability and how they can ensure there will be no strikes every 2 months. Very difficult to see this in India. Nam, maybe more possible.

这是骗傻子的，三星从中国已经撤退十年了。前两年完成最后的搬离，三星是被抵制才搬离的。

>>Samsung and Apple made some smart choices

@@suryaprasanth9105 If you mean Modi always and do everything he says, then yes, the Indian government is stable. Modi is simply playing the same game Xi in China is doing, promoting nationalism. It definitely is a big market, but possibly will be the next country to into conflicts with Western democratic principles.

Companies move from China to Vietnam facing infrastructure issue. VN can't support large scale of manufactures, frequent power outage causing many interruption, slow down production output. It is a headache for them.

Boohoo 6 minutes 😢😢 my attention span can’t handle 6 minutes 😢😢😢😢

I agree, supply chain is what's keeping everyone trapped in China

Also, the Taiwan company Foxcon moved there manufacturer in India. The company profits cannot leave India. That why Apple are still hesitate opening the manufacturing in India. 😂

My Samsung robot mop is made in Korea

The biggest problem with manufacturing in China is corruption although almost no one is discussing that.

India is addressing the connectivity issue . It will be a thing of past in a matter of three to 5 years

India has a very, very protectionist regime in place and it has the habit of harassing foreign companies when they run afoul of Indian sensitivities. They usually harass those companies (examples being Nokia, Xiaomi, OPPO all of which with substantial investments there) with tax probes or FX repatriation matters. That's besides terrible red tape plus lousy logistics and efficiency. Vietnam is somewhat better due in part of its proximity to supply chains in Guangdong, China where many of the original factories were based to start with.

Neutral?

@Omy Haby indeed neutral .

@@omyhaby1912 Yes he said neutral.

Yes, neutral in terms of _they are not enemies._ For over a decade, China has been at war with the USA (and much of the rest of the world) in every way except militarily.

Better in India, China uses Vietnam as proxy nation.

ASK TESLA.

because war in Ukraine or COVID. pick one 😂

@@BLITZKRIEG1 excuse me, what?!

It's called supply CHAIN. And they are only one dot in this chain.

@Terryzn then whats the issue with making the iPhone in the USA? (I know the answer, just curious what you think)

I have been to Malaysia. It was a great nation to travel & stay for a period of time, but not a nation to produce goods in. People are laidback there, just compare Malaysian & Singaporean, Malaysian be like taking holidays every day.

@@karlk7070 to be honest I think that is too over generalized. If Malaysia is incompetent and too laidback, there will be no industry that could survive there. Furthermore, one of the Malaysian major exports is electronics and recently there are a lot of existing MNCs in Malaysia increasing their investment into the country expanding their plants, operation and services. Moreover, to compare with Singapore, haven't you realised that, there are 350,000 Malaysians who are willing to cross the border to Singapore daily just to support their family. How is that supposed to be laid-back?

@@Q-oy4dw yeah you are right, mostly cuz I stayed not for long as a traveller. I mean, the government officers gave me bad impressions of them being laid back, but I definitely shouldn't comment it as the characteristics of Malaysian people... Sorry for my wrong comment. After all, Malaysians are pretty happy and the living standard is good for its economy, which made me believe in it being a travel hub. For manufacturing, idk but it's a country with potentials.

They'll go where ever people are so desperate that they will work for almost nothing = bigger profits. China has moved beyond that and are trying to improve things for their wo

Market size is one of the key factor

They already existed and dominated Indian market for almost a decade, but Geopolitics has meant their share is going down steadily.

xiaomi and vivo has been in India for many years and they even have local factories there

Samsung's problem is not Chinese competition, but China's protectionism. Samsung (global smartphone #1), Hyundai (global auto #3), LG Chem (EV battery, outside China, #1) and many other South Korean companies were forced out by the CCP to make room for domestic counterparts. It's China's plan to forced out all foreign companies ultimately, and replace them with their own. Nobody is under illusion that China is all about fairness, competition, or innovation.

One phone would cost 3k 😂😂😂

​@@sov19871987 more like 10k if not 30k

No one want to get sued when something went wrong

The labor in the U.S. is expensive and plus America one iPhone will go for at least 2K or 3K.

Not very smart are ya

Apple has strict control over its vendors. The actual manufacturers can be easily replaced if need be. Apple already incorporated 2 new local vendors to do assembly in india recently.

Can't imagine that African countries do not come up during these meetings when deciding, I just wish the countries had leaders that are serious about it's potential and worked towards progress and growth.

Africa is like 54 different countries with different currencies, laws etc. It's the exact opposite of what you get with a huge country like India & China.

As you say, automation may mean manufacturing is brought back to the West. Double or trebling productivity with AI and robotics will outweigh any gains made by cheaper employees.

Too unstable and too much corruption. Well, I'm not saying all of African countries but majority and even if there is no domestic instability in some, just having an unstable neighboring country is a turn off.

Not happening atleast before 100 yrs.

foxconn is making two very big components manufacturing plants in india. in next 3-5 years, we can reach level of china in terms of value addition. vietnam lags in value addition. they are just focusing on assembling.

Report the channel and video for propagating the Chinese version of Indian map

Southeast Asian countries have all suffered a history of colonial invasion. Although some Southeast Asian countries have conflicts with China, when Western colonialism deployed military forces to East Asia, they knew very well that the only option left was China (Russia) The strength is far inferior to that of China), and no Southeast Asian country is willing to let Western colonists dominate its own national destiny and future.

>>Most facilities in Vietnam are actually owned by Chinese companies.

So basically American manufacturers need to exit China fast because they will tank this global economy down to the ground. Mexico Latin America Africa would be a better solution

Then ask yourself why are the WSJ describing China as the number one enemy?

Those go first! Remember the U.S. pull out in Afghanistan... EVERYONE says it was bad, they left equipment blah blah blah. Meanwhile, in reality, THE TALIBAN HAS NOTHING, and no one even speaks on it, lol.

That imaginary war will never happen, there would be no gain no matter which side wins.

@@xiawilly8902 People said that before WW1 started.

That's true. Nobody is stopping companies making dirty chemical or minerals from leaving China b/c China is one of the few countries that do not care about their environmental or workers' health/rights.

Samsung trying to make cpus pfffft. We all know how that turned out. Look at overheating Snapdragon and rtx 3000.

@@fynkozari9271 🙃

Assembling then Manufacturing of Certain Electronics products Step by Step Mexico Vietnam Brazil and India beating China

surely, those who can't compete in chinese market will leave. those who succeed will stay to enjoy their profit.

AND WHEN WILL IT COME BACK TO USA? I DON'T CARE NOR DO I WANT IT TO GO TO VIETNAM OR INDIA.

no american company will leave china. China is too big of a market for them. if all western companies will leave china the western world will collapse fast. really really fast. learn about things first before you make a stupid comment like this.

@@leethal59 if they would make their products in the US you will pay at least 3 times as much for an iPhone. you dont want that now do you

New companies entering china will be more than leaving china.

samsung only assembles in india . not manufacture . apple production is producing very low qualifty products in india .

​@@Q_QQ_Qmy s23 ultra was made in india (samsung has its display plant in noida). So not just assembly. Only chips come from taiwan and korea (same was in china, it was assembling only)

​@@Q_QQ_Q😂 its only chips now ! Samsung build world's largest Mobile factory in India ! From display to battery now all made in India! Exception only chips which will soon coming to India !

Greatness doesn't happen overnight.

Exactly, many companies in Southeast Asia are interlinked via ASEAN. Going to these countries for 10% income tax is simply playing into Chinese hands.

The video should have also mentioned that India has been increasing tariffs on cellphone and electronics imports, thereby encouraging companies to set up local production to keep and grow that market.

@@poppinc8145 they took deliberate regulations to fine china brands as well. very unfair, not a good move

@Sed yes we Indians did that and we are happy that our govt did it

@@sss2005sunil1 smear the normal technology licensing fees that manufacturers give to Qualcomm as foreign exchange outflows ??? stupid or malicious？

Apple will not maintain a big portion of their production in communist China. They don't have to and people will stilll buy because it is an iPhone

in 2015, South Korea was forced by USA to setup American air defence system against North Korean Nuke Missiles. China didn't like that, and retaliated against South Korea, and started boycott against South Korean products, and companies. That's why South Korean companies left China and moved their faciliites to other countries. China was afraid of USA, so they could not retaliate against USA, and only able to bully South Korea. what a cowardly thing to do.

>>Samsung smart phones have no market in China anymore

They are moving all their assembly plants out which will mean they lose a lot of sales in China.

@@davidlazarus67 : except that Apple has no plan or desire to move -- 85% of more of their manufacturing will remain in China for at least next 10 years.

because as long as everything goes fine it is cheaper not to diversify production. And businesses/managements are rewarded for short term success.

Nice try. When they try new locations, to the manufacturer horror things are worst than in China. Vietnam and India does not stand out due to political interference, poor logistic and poor worker training methods and lousy downstream sources.

Maintaining supply chain in multiple locations will trememdously increase cost of production, leaving room for competitors.

What’s the difference between Vietnam and China or even India Or has the media not yet brainwashed you about the other two 😄

is vietnam a western liberal democracy lol?

Vietnamese workforce is not reliable. They only very good in tailoring. That's all

Then you should stop buying electronics in general. After all, at least one component will be made in China.

​@@levelaznIndia, l doubt this guy even heard of the Manipur incident to have the liking for India.

That's why they are pivoting into AR/VR. Their cash cow is in the intangible products and APP store.

Did you miss the part where they said that manufacturing was cheaper in other Southeast Asian countries like Vietnam? And that labor costs had soared in China? These are business decisions, not just geopolitics. If Vietnam can manufacture phones more efficiently than China, then companies will move to Vietnam. Simple as that.

More likely they will drop in half ... just like TVs or computers.

because China wasnt even a significant market for Samsung. Samsung still holds the largest market share in the world and recently, has taken a huge share of the market share in Japan for the first time in 15 years. While Samsung lost market share there, it still holds the largest market shares in most countries globally

My company is selling cosmetics lamer, bobbi blown, estee ect..., net sell from China biger than net sell from global 3 time 😅. We cannot leave China

@@dachochiyo3992 yep after seeing your other comments i can tell your not a troll and definitely not lying👍🙂 lol

SIR MY INDIA IS THE REAL SUPERPOWER 🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN CHINA PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳

1:26

Report the channel and video

WSJ only america propaganda😂😂

Do you want WSJ to say that the Chinese gov't's forced out foreign business as part of Xie's state industry policy starting 2013? Samsung, along with Hyundai and LG Chem, were forced out of China as part of Xie's state industrial policy to protect and nurture domestic competitors. Samsung's 20% Chinese market share in 2013 dropped to 1% while they maintained #1 global top smartphone seller; Hyundai also had 10% of the Chinese auto maker in 2013; now down to 1%, but now they are top #3 global automaker. LG Chem also had 50% of the Chinese EV battery market in 2014, but was forced out by highy discriminatory and anticompetitive illegal subsidy, forced IP transfer and other practices by the Chinese gov't to exclude them from the Chinese market. LG is likewise the largest battery maker outside China. All South Koreans businesses are hyper competitive leaders in their respective field -- China can't hold a candle without the Chinese gov't protecting their market from them.

It hasn't disappeared, but its market share is very small

There are no innovators in cellphones.

😂so smart

What is the top cell phone market share in the world? Perhaps look up this statistic before commenting. Samsung and Apple are both at the top, despite selling expensive phones.

True, I very much doubt Apple could take a foothold in the Indian market given that they didn’t really have first-mover advantage like they did in the US. Their current market share in India is abysmal to say the least.

Apple only needs to capture the premium smartphone division which they already lead in India. They're not interested in competing in the budget category.

@@stevens1041 The majority of samsung phones are mid range and low end devices. Samsung even has a special product line of mid range phones sold in China. Not only that, but the only samsung phones in the top 10 best selling 2022 smartphones in the world were midrange devices. Perhaps look up this statictic before commenting.

having iphones is a requirement to land a date in every country now. because pretty girls only use iphones, and they don't talk to guys whose text bubble is green (android). if you want to date a girl in India, you need an iPhone too. it's not an option

samsung is becoming more and more apple everyday. they saw those dollar signs and went blind

Why were you a Samsung fan all this time as opposed to apple if I may ask?

A friend of mine working in samsung disclosed that samsung knowingly pushes updates to slow down the phone as well as increase battery consumption using bloatwares in order to sell newer models. They want everyone to upgrade or atleast change the phone every couple of years specially in budget section smartphones. This business strategy is used by all the leading android smartphone manufacturers except with the phone having android one which is android in it's pure form. All the UI integrated with android such as MIUI, OneUI , ColorOS etc are used specifically for this purpose only.

​@@asianstud7 because Samsung is better than Apple very simple lol

​@Rohit Kumar you're mistaken that's apple not samsung

>>they can’t bring in the most advanced EUV equipment from ASML in the country. ...> This will probably lead to a decline in sales to China as well, ...> Lower end memory chips which do not require the most advanced technology nodes would be made by local Chinese companies.

Samsung has an one year exemption+extension that allows them bring equipment into China

Yes Pok and aksai chin are also parts of India

The map is correct punk

​@@SanjivKumar-cw3oq Report the channel and video .

By 2025, Apple is expected to raise its production to 25% of the global iPhone share in India. As of now, it stands at 7%.

It's already 7% at the end of 2022, and will go to 25% by 2025. You are delusional

@@ignashi7plays401 7% in India so roughly 93% in China. 2025 huh? Guess many things will change by then. Huawei is sure to come back and completely face to face with apple 🍏

@@unclesam8565 It's 85% in China. Who knows what's gonna happen till 2025, may be Huawei can go bankrupt by then.