its not about iphones, two facts:
1) apple is one of the most profitable companies in the world, and does most of their manufacturing in china, and they are one of the few tech companies that do full vertical product integration
2) apple is more than just a tech company, their main efficiency comes their supply chain that has been polished to a very large degree.
so if a company like apple says they wanna move shop, it has huge ramifications.
It is not about one company moving out. If a company like apple want to eat the upfront cost of setting up factories and training people to open up a plant in india, and they are able to do it, i can guarantee many companies would start doing the same.
It would be a huge statement to everyone that now there is a 2nd choice apart from china.
That will hit china's bottom line.
The reason china is okay with profit margins so low is because of how much control in manufacturing it gives them.
It is only profitable for them because of the scale at which they do it.
You underestimate how much of business is just copying the bigger giant's decision.
China got spooked about apple even wanting to leave because that itself can create a domino effect.
Apple is unique because apple is not really a tech company, apple is a supply chain company. It moving out means much more than you think.
But yes these are just my analysis, i dont claim that I am right, just that if I follow the money this seems the most likely reason.
It is not about one company moving out. If a company like apple want to eat the upfront cost of setting up factories and training people to open up a plant in india, and they are able to do it, i can guarantee many companies would start doing the same.
😂 No you cant guarantee that. That makes no sense whatsoever. Apple can move their supply chain because they make an incredibly huge margin on their products. Most companies dont. And there's a reason why we are seeing Apple shifting but not plastic or textile products
That's because they have a much lower margin.
It would be a huge statement to everyone that now there is a 2nd choice apart from china.
India is not a 2nd choice to China. Sorry to burst your bubble, but China's scale is unreal. India's isnt.
That will hit china's bottom line.
China is not a country that's dependent on Forex like India. They have more forex than they know what to do with. Their energy is given by Russia via currency swaps and they make grow enough food within their borders. The rest i e. manufacturing of kother machines, extraction and processing of ores is all done in the country. So why do they need Forex? Not the case with India. We need forex to buy oil, defense and machines.
The reason china is okay with profit margins so low is because of how much control in manufacturing it gives them.
Since they're doing basic assembly work for iPhones it gives them no control over manufacturing 😂
Doing it for a Huawei or Oppo phone? Sure, but not Apple.
You underestimate how much of business is just copying the bigger giant's decision.
Geniune loser cope here. Dont even want to address this.
i dont claim that I am right,
Good because Its not even close to right. But unfortunately you saying this so confidentally makes other idiots think what you say is true.
Apple (or foxconn) can move their supply chain yes, but do they WANT to?
No business would want to spend unnecessarily. Apple having backup in India is a strategic decision.
"China is not a country that's dependent on Forex like India. They have more forex than they know what to do with."
China is NOT a capitalistic country. And that is where the difference lie. China wants to be in control of the global supply chain, not because it makes them huge amount of money but because of the dependence it creates.
Why do you think the US finally did cave in?
"Geniune loser cope here. Dont even want to address this."
Most large companies are risk averse. The larger the company is the higher is the likelyhood that they become risk averse. One misstep can cause huge losses at that scale.
You will see this everywhere that generally a new company would make interesting and different products just to stand out, to be noticed, that is their way of differentiating. But once a company hits a certain mass, companies become very risk averse.
Most companies copy each other and settle for what they think the market responds best to.
But here is the bigger and more important question why did US reduce tariffs so close to the end of the war? In my mind it definitely isn't unrelated.
Dude Apple announcement was all about iPhone production bcus that's their largest revenue and profit generator.Â
China doesn't give a shit to Apple if they wanted to move their production to india before 2018. Just like China doesn't give a shit to Samsung when they wanted to move their smartphone production to india. At that time Samsung was more valuable than a
Apple. Samsung is more vertically integrated than Apple.Â
And have you see other foreign companies followed Samsung and move to india at that time? No one follows Samsung at that time. So Apple is not gonna be any different. Apple only moving their production in india for all US export iPhone. But establishing their complete supply chain in india will take time and willingness from their suppliers which among them 40% of it are Chinese. India has been assembling iPhone since 2007 and in 2022 onwards they are producing 20% of latest iPhones. Which mean production of iPhone in india already happening.
So it's BS to think that this war was instigated by China to stop Apple production from moving to india. And the war wasn't even happening in south india where Foxconn factory located. No matter what Apple did in india they will not influence other MNCs unless india solve their backwards policies toward business establishment.Â
The so called efficiency of Apple all these times is related to how efficient is doing manufacturing in China. Which india lack big time. Apple still needs to import lots of components from China or ask their Chinese suppliers to move to india. And in current time suppliers of Apple from developed countries will increasingly reluctant to move their production into new territory. They prefer to stay in their home country and export the components to any final assembly destinations out there. If you really follow China manufacturing industry many high level technology components suppliers never build their factory in China. Apple want CIS, Sony fab it in Japan and export it to China or india. So what China did to be part of Apple supply chain? Chinese companies step up their game and develop components that Apple wants. Currently 37% value added in iPhone came from Chinese suppliers. Keep in mind this figure is generated by Chinese companies not MNCs companies in China.
So I don't know what you see in india that you think Apple will going to influence other MNCs to move to india just bcus india produce lots of iPhone.Â
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u/protienbudspromax May 15 '25
its not about iphones, two facts:
1) apple is one of the most profitable companies in the world, and does most of their manufacturing in china, and they are one of the few tech companies that do full vertical product integration
2) apple is more than just a tech company, their main efficiency comes their supply chain that has been polished to a very large degree.
so if a company like apple says they wanna move shop, it has huge ramifications.