Apple Reportedly Seeking to Move Significantly More Production From China to India

[Regbial]

Maybe someone should just forcibly take down or arrest all top CCP members and have China create like 3 parties out of necessity, and go from there. It's the CCP that unleashed the virus unto the world (due to not wanting to create panic before a massive festival), it's the CCP that killed millions of Chinese people (lol, don't believe the numbers). It's the CCP who must pay and be abolished. Winnie the Pooh should be arrested. CCP and Winnie the Pooh (And Trump and other world leaders yeah, but they especially) have oceans of blood on their hands. Just a reminder.

 

[justperry]

Apple scheming again to pay as little as possible for manufacturing while increasing prices.

Don't you think there are other reasons than that, like not depending on (mostly) one country to make their iPhones, you see what happens(ed).
In an ideal world iPhones should be made in a factory next door to a customer, this though costs way too much, a better solution would be to have one on every continent, but even this would make things more expensive.

Look what we have now with Covid, masks and the like are mostly manufactured in China, this wasn't a good idea and it seems likely that more factories are being opened locally, for good reasons.

 

[I7guy]

Looking at all of Apple's recent releases... what R&D?

I agree. Apple doesn't need R&D, just produce products that people want to buy. /s

...It's ruining peoples lives.

What people's lives? Specifics?

I know right? It's crazy to think that they can come up with the same phone with minor improvements year after year, then charge more than any competitor and then blame it on R&D. Do you know how long it takes to come up with new emojis all while keeping 64gb storage a standard option? CRAAAAZY!!!

Must be dumping all of Apple's vast resources into emoji development and none into hardware development. /s

 

[pweicks]

Less business for the commies.

 

[xyz01]

Great to see an American company invest in America.

Given the risk of US getting involved in more and more trade wars, it's not a place I'd consolidate manufacturing.

Given the volatility the last year or so, I'd probably try to spread it around to reduce risk if at all possible.

 

[ilikewhey]

Pretty sure Apple is treading carefully and trying not to piss off the ccp, after all the Chinese market accounts for 15% of Apple revenue. While India accounts for way less, even the cheapest iPhone cost way more than a mid range android.

 

[nvmls]

Discretion os the better part of valor.

I'm just amazed. India seems to be a new hell hole that business has found to exploit the natives, and extract huge profits. It's sad... I bought Aleve, and it's 'made in India'. Why? Why would a drug company make something we take in our bodies in hell holes like India, China, and elsewhere. The drive of profit above all has to stop. It's ruining peoples lives.

People buying are the ultimate responsible of this.

 

[nylonsteel]

good idea - dont keep all your eggs in one basket

 

[ipedro]

Good. I’d rather see Apple’s massive employment and buying resources go into raising the world’s largest democracy from poverty than propping up a dictatorial super power.

 

[mozumder]

I know right? It's crazy to think that they can come up with the same phone with minor improvements year after year, then charge more than any competitor and then blame it on R&D. Do you know how long it takes to come up with new emojis all while keeping 64gb storage a standard option? CRAAAAZY!!!

Indeed. As usual, the first 90% is easy. The last 10% is the hard part. You are learning how expensive R&D actually is for incremental gains. It's always much harder and more expensive to improve something that's virtually perfect like the iPhone.

Nothing in life is free. Being smart costs money.
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Good. I’d rather see Apple’s massive employment and buying resources go into raising the world’s largest democracy from poverty than propping up a dictatorial super power.

Unfortunately the world's largest democracy has turned into an autocracy. There is an entire state under complete censorship right now, sorta like what happened to the Uighurs in China.

 

[Marli]

Im not sure if many have read Tim Cooks book, but I have, And profit wasnt actually the main reason.. It was more about supply Chain and logistics. China and Foxconn was the only place that could done what needed to be done. You cant today build the smartphone without people (machines cant do it), and a lot of them, and you need them to be extremely flexible. Thats can only happen in a place like China, where they live at the factory. India could probably do the same.. But its not going to happen in a western Country thats for sure.

 

[ksec]

One fifth in the next few years is still very little. That is basically all non FaceID iPhone.

 

[Stevie jobz 2.0]

It’s almost as though there are many other factors that add to the final cost of the product, such as R&D.

R&D costs? What's the price to reverse engineer what the leading android phones were doing last year?

 

[tipoo]

Excellent. India has it's own problems but at least it's a democracy that generally over time moves in the right direction, momentary setbacks are just that. Far rather them than totalitarian China.

It's a shame that that relationship was soured early on, seemed like an easy alliance, but you can thank Nixon and Kissinger for sending them into Soviet hands for a few decades there, tl;dr when Pakistan was committing a genocide in then-East Pakistan (now Bangladesh), India stepped in to try to help, and got threatened for it by the US of all things, because Nixon was so paranoid about that region going communist that apparently it was better to side with the genocide. The Soviets warded off the US ships, setting the stage for the relationships for the next few decades.

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Handled a better way, India would have been a much better ally than Pakistan, and a much better counterweight to China.

 

[ingambe]

People who thinks it's because of the wage cost that product are not made in the US/Europe doesn't know a clue about this issue
For the final product, the labor cost is a tiny tiny percentage of the final cost (a few dollars) even with US/European wage these product would not cost more
BUT, in Europe and US you need to respect some rules, worker have way more right and you need also to respect the environment way more

 

[tavsingh]

The import tax on iPhones currently is more than 40% in India. The $399 iPhone SE is launching here for $562

This move will reduce the taxes and help apple gain much more market in India.

 

[dazz87]

CCP really mess up with these virus..............

 

[lunarworks]

This whole thing has been a big lesson not to have all your eggs in one basket.

The jobs didn't HAVE to go to China. The jobs went to China to make more profit.

One of the big drivers of offshoring work was that if your competition moved their manufacturing to China, you couldn't afford not to. It gave them airspace to strategically undercut you. It was a chain reaction, unfortunately.

 

[Abazigal]

R&D costs? What's the price to reverse engineer what the leading android phones were doing last year?

Such as?

iPhone designs are typically locked 1 year in advance to give Apple logistics enough time to source for parts. So the iPhone would have been locked in by the end of last year, so it’s really not possible for Apple to see what the competition was doing last year, and attempt to copy and force fit it in within such a short period of time.

If the iPhone comes out with a similar feature this year, it makes more sense that they already stated working on it years ago, and the apparent later release date is because it takes more time to refine and integrate it properly with the OS, as opposed to just throwing it out there.

 

[steve333]

Everywhere but here, huh Timmy?
Better than China though

 

[4487549]

I ran a computer company for over 40 years. You want to lecture me on 'business'?

It's funny, I remember when 'business' meant helping your employees to have a better life. Employers cared about the people they employed. When a business announced massive layoffs, their stock took a hit. Back then, that meant the company was struggling, back then it meant that the end could be near. Then something changed. I remember watching CNBC, and major corporations announced massive job cuts, and their stock went up. Investors knew those jobs were going to China, or elsewhere, and the corporation would start reaping higher profits. The products didn't get better, the production of them got drastically cheaper. To go from a high labor cost to an almost literally zero labor cost is why these corporations were making huge profits, and the investor class lined up at the capital gains trough. My company used to sell to the residential market, and that ended. We sold to the business market and that ended too. Clients and customers went bankrupt because of the drive for profit.

Profit above all is evil. Profit above all is inhumane. Corporations were not started to enrich the investors, they were started to enrich the workers, and the areas they were located. Things changed, and not for the better. But, by all means, keep trying to lecture me on 'business'. This could prove humorous...

This also perfectly sums up the divide in the MacRumors comments section:

• Those who want the best products from Apple to make their lives better
• Those who defend how much Apple is profiting as a business

 

[VictorTango777]

I know right? It's crazy to think that they can come up with the same phone with minor improvements year after year, then charge more than any competitor and then blame it on R&D. Do you know how long it takes to come up with new emojis all while keeping 64gb storage a standard option? CRAAAAZY!!!

R&D is the new "it's a matter of National Security".

 

[ajfahey]

The jobs didn't HAVE to go to China. The jobs went to China to make more profit.

The jobs went to China because of competition. Certainly many did not for any number of reasons. What is certain is that we aren't talking about them now because they no longer exist. You see, that's what happens when you try to fight tide like forces like global competition. You relearn the theory of evolution and the survival of the fittest where you adapt or die.
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This also perfectly sums up the divide in the MacRumors comments section:

• Those who want the best products from Apple to make their lives better
• Those who defend how much Apple is profiting as a business

I want Apple to develop the best products and be successful, profit, as a business. Neither is possible for long without the other. An unprofitable company doesn't have the resources necessary to innovate, to develop the best productions.

Your response suggests that a great deal of sociopolitical emotion underpins your opinions. You don't seem to understand the healthy and, in fact, necessary connection between innovation and profit that comes from business success.

 

[H2SO4]

I ran a computer company for over 40 years. You want to lecture me on 'business'?

It's funny, I remember when 'business' meant helping your employees to have a better life. Employers cared about the people they employed. When a business announced massive layoffs, their stock took a hit. Back then, that meant the company was struggling, back then it meant that the end could be near. Then something changed. I remember watching CNBC, and major corporations announced massive job cuts, and their stock went up. Investors knew those jobs were going to China, or elsewhere, and the corporation would start reaping higher profits. The products didn't get better, the production of them got drastically cheaper. To go from a high labor cost to an almost literally zero labor cost is why these corporations were making huge profits, and the investor class lined up at the capital gains trough. My company used to sell to the residential market, and that ended. We sold to the business market and that ended too. Clients and customers went bankrupt because of the drive for profit.

Profit above all is evil. Profit above all is inhumane. Corporations were not started to enrich the investors, they were started to enrich the workers, and the areas they were located. Things changed, and not for the better. But, by all means, keep trying to lecture me on 'business'. This could prove humorous...

It's difficult to be a stand up guy and put your money where your mouth is/was, (not directing this at you).
We've all for decades had the option to buy our goods locally, be that consumer electronics or food. We chose not to. We blame corporations and then buy shares in them.
We may be blaming China now but I suspect every country has done terrible things to its citizens and foreigners but we forget about those and find a way to justify it to ourselves when it's convenient to do so. I hope we're all as even handed the next time one of our own does something terrible.
Something that on the surface appears benign is GM crops and I'm of the opinion that we'll only really 'reap the benefits', (problems in the natural ecosystem), in a good few years. I hope you'll all then slate the western governments, (amongst others), for unleashing it on the world.

We need the courage of our convictions.

 

[marco114]

Apple has huge margins on their products. At least 5-6x. They aren't inventing new stuff and still reaping benefits. They need a new visionary that doesn't just look at the bottom line.