I would have done it earlier, but the pandemic prevented it.
As the publication explains The Wall Street Journal, Apple intended to start a big move of its electronics contractors from China to neighboring countries at the beginning of 2020, but then the pandemic prevented the process from initiating. The Shanghai lockdowns, which could cost the company $8 billion in lost revenue this quarter alone, have spurred it to step up efforts in this area now. According to the source, Apple contractors were advised to start increasing their presence in other countries in the region, among which India and Vietnam were mentioned.
Image Source: Reuters
In principle, if we talk about India, Foxconn and Wistron are already operating there to produce Apple smartphones, but last year they produced only 3.1% of all iPhones, and even this year their share is unlikely to exceed 7%. Over 90% of Apple products are made in China. The migration of enterprises to India from China may be complicated by political contradictions between the two countries, but it is India that has both a sufficient amount of labor and a growing sales potential in the domestic market. The Chinese market allows Apple to receive up to a fifth of all revenue, and the company does not want to completely transfer its production from this country.
announcements and advertisements
3070 Ti for a penny – you have to take
RTX 3070 for 80tr in Citylink
RTX 3050 cheaper than 40 tr in Citylink
3090!! Ti!! in Citylink – see price
RTX Ti 3070 under $90 at XPERT.RU
3080 Ti Gigabyte Gaming cheaper than 150tr
Price of i5 12400 dropped by one and a half times
3070 Ti MSI Gaming – 82tr XPERT.RU
3060 Ti Aorus Elite – 61tr in XPERT.RU
i7 12700Kf fell in price one and a half times
3080 Gigabyte Aorus for 100tr in Citylink
3060 Ti from 50 tr in XPERT.RU
Rival Samsung Electronics has managed to scale up smartphone production in Vietnam while minimizing its dependence on China, but it’s not certain that Apple’s contractors will be able to do the same. Luxshare already has a production facility in Vietnam that assembles Apple AirPods wireless headphones, and the company was recently approached by a major customer to consider launching a new product category outside of China. It will take years and a lot of money, but Apple’s business is so large that even such migrations can eventually justify themselves.
