But she has the desire to do so.
The Wall Street Journal shared the views of participants in the process initiated by Apple – the company has set a course to reduce dependence on manufacturing enterprises in China. Contractors have been tasked with making more Apple products in India and Vietnam. If such migration develops, it will not be so easy.
Image Source: Bloomberg News
First, if the share of Indian and Vietnamese enterprises reaches a significant value, they will inevitably have to master new models of Apple products. This is not the easiest process, which has traditionally been supervised by seconded specialists from Apple itself. Now the expansion of the company’s staff for new projects of contractors is hindered by the economic crisis.
However, this is hardly the main problem. Vietnam, for example, cannot offer the same number of workers as China, because no more than 100 million people live in the first of the countries. India, while rich in human resources, makes doing business difficult with unpredictable bureaucratic hurdles that vary from state to state. The Chinese authorities, for all their contradictions with Taiwan and the United States, were very loyal to foreign investment, which allowed Foxconn to become one of the largest exporters in the country – last year, this Taiwanese giant provided 3.9% of China’s export earnings.
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An alternative to moving enterprises outside of China could be their dispersal within the country. Apple is simply trying to attract more smaller contractors than Foxconn that have or are building factories in China. According to this principle, Pegatron, Luxshare and Wingtech Technology can expand cooperation with Apple. From problematic Zhengzhou, Foxconn employees also removed equipment this year to be placed at the company’s enterprises in Shenzhen, according to sources. This made it possible to at least partially compensate for the loss of production volumes in Zhengzhou.
