iPhone Maker Foxconn Says China's 'Days as the World's Factory Are Done'

[MacRumors]

China will no longer be the world's manufacturing epicenter going forward, according to Apple's largest supply chain partner Foxconn, which has been gradually expanding its operations in other countries amid the U.S.-China trade war.

"No matter if it's India, Southeast Asia or the Americas, there will be a manufacturing ecosystem in each," said Foxconn chairman Young Liu, according to Bloomberg. Liu boldly proclaimed that while China will continue to be a key location for Foxconn's factories, the country's "days as the world's factory are done."

The report claims that Foxconn's manufacturing capacity outside China is now 30 percent of its total, up from 25 percent last June. Foxconn is one of several Apple suppliers that has expanded operations in India and Vietnam in particular.

Earlier this week, it was reported that Foxconn has commenced its seasonal hiring spree to assist with iPhone 12 production. Apple is widely expected to announce four ‌iPhone 12‌ models this year, including a 5.4-inch model, two 6.1-inch models, and a 6.7-inch model, all with OLED displays, 5G connectivity, and a new flat-edged design.

While new iPhones usually begin shipping in late September, Apple recently indicated that supply will be available "a few weeks later" this year. Foxconn expects a dip in its third quarter earnings results as a result of this delay.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: iPhone Maker Foxconn Says China's 'Days as the World's Factory Are Done'

 

[steve333]

I was just about to mention this on another thread.
China needs to learn a lesson and The West needs to stop propping up a country that is run by tyrants who want to achieve world domination.
Next step is to ban any internet companies associated with China until they allow Google, Facebook, and other companies to operate in their country unfettered by censorship. Like that would ever happen.

 

[calzon65]

Foxconn is a huge manufacturer ... this is a big deal.

China (i.e., the CCP) blew it and are now paying the price.

 

[Mansu944]

I was just about to mention this on another thread.
China needs to learn a lesson and The West needs to stop propping up a country that is run by tyrants who want to achieve world domination.
Next step is to ban any internet companies associated with China until they allow Google, Facebook, and other companies to operate in their country unfettered by censorship. Like that would ever happen.

We need to make sure those companies are open and not censored also.

 

[Agit21]

Next step is to ban any internet companies associated with China until they allow Google, Facebook, and other companies to operate in their country unfettered by censorship. Like that would ever happen.

I want to say I'm with you on this one but seeing those tech companies being bias against Trump there is NO WAY other countries will allow these companies doing what ever they want. They'd mess up every government that is not hard left.

 

[lixuelai]

China has been trying to go up the value chain for years. Not exactly a new trend. Foxconn is near the bottom of that chain. Also, Foxconn say one thing and does another, just look at Wisconsin.

 

[Woochoo]

China needs to learn a lesson and The West needs to stop propping up a country that is run by tyrants who want to achieve world domination.

That may seem exagerate but it's just the way it is, and if you think about it the whole situation is ludicrous

 

[iReality85]

It's a shame in the end, as all it will do is hurt the Chinese people and their economy. But the CCP has no one to blame but itself for its economic policies and aggressive posture over the last several years.

 

[JM]

Politics VERY very far aside, it's always a good idea to diversify in business and investing.

 

[kaycrystal626]

So what, the jobs are not coming back to the US anyway!

 

[EugW]

Hopefully they are successful, because it's always best not to have everything in one basket, but the various companies that have been been trying to diversify in this fashion have run into serious problems. This has been true of places like India and Thailand for example, due to corruption, political instability, and lack of infrastructure.

As much as we all love to hate China's policies, you have to give them credit for emphasizing stability and infrastructure support for industry, precisely to attract this type of investment.

 

[NBAasDOGG]

This means another $49 price increase for all iPhones this year!

 

[satchmo]

In other words, the remaining poor countries will now do the cheap labour.

 

[cocky jeremy]

Anything that hurts China is a win for everyone else.

 

[aplnub]

If I were Foxconn, I wouldn't have said that out loud unless they are wanting help from their customers to expand operations outside China at a faster rate and then I don't think I say that out loud until I'm gone.

 

[sgtaylor5]

Wonder what brought this decision to a head...

 

[1rottenapple]

Unless we are all willing to spend mucho bux on carp we manufacture overseas it’ll never come back. I work in management and with labor laws, lawsuits, benefits etc, it’s expensive here in the USA. Unless 80% is automated like tesla, manufacturing is not feasible in the USA. So quit blaming China or India or other overseas country and look at our selves, our spending habits and unwillingness to pay up to the American worker. You think this smart phone revolution would have happened if iPhone s cost $2k in 2006? Lol please. Yah will buy one every 5 yrs if that’s the case and innovation will slow.

Look at small cars manufactured in Mexico across the border. The manufacturers cannot break even producing small low margin cars. So should they produce them at a loss? That’s not capitalism and the free market which goes against our countries beliefs.

 

[EugW]

If I were Foxconn, I wouldn't have said that out loud unless they are wanting help from their customers to expand operations outside China at a faster rate and then I don't think I say that out loud until I'm gone.

Fortunately, you're not Foxconn.

 

[hagjohn]

I want to say I'm with you on this one but seeing those tech companies being bias against Trump there is NO WAY other countries will allow these companies doing what ever they want. They'd mess up every government that is not hard left.

They are literally allowing foreign influence into our election and country for the benefit of the right to spread lies and mistruths and you say they are bias against the right... 😂

I think Foxcon is right. I wish it would have taken less time and less of a toll on many of our countries.

 

[xxray]

The Chinese government is going to love hearing this.

 

[1rottenapple]

Politics VERY very far aside, it's always a good idea to diversify in business and investing.

Agreed it’s impossible to buy American on certain products. I tried to buy a similar hydro flasks water bottle and it was impossible. It’s really dumb for the USA government to allow USA companies to rely on one country for items like our mask, PPE, many of our vital meds all come from China. Thanks capitalism. They should have intervened but of course intervene and you’ll be called a socialist.

 

[DocMultimedia]

Supply chain is getting less expensive elsewhere. Wherever a company gets the best deal, that is where they go. Very simple.

 

[BGPL]

Better stock up on $19 headphones while you can. Amazon won't be the same.

I wonder if China will pay the multi-trillion dollar tab for Corona, or if they'll quietly slip away to the "bathroom" one at a time?

 

[Expos of 1969]

Unless we are all willing to sound mucho bux on carp we manufacture overseas it’ll never come back. I work in management and with labor laws, lawsuits, benefits etc, it’s expensive here in the USA. Unless 80% is automated like tesla, manufacturing is not feasible in the USA. So quit blaming China or India or other overseas country and look at our selves, our spending habits and unwillingness to pay up to the American worker. You think this smart phone revolution would have happened if iPhone s cost $2k in 2006? Lol please. Look at small cars manufactured in Mexico across the border. The manufacturers cannot break even producing small low margin cars. So should they produce them at a loss? That’s not capitalism and the free market which goes against our countries beliefs.

So this ridiculous obsession with smart phones and the zombie populations they have created could have been avoided if Apple had kept manufacturing in the US. Damn shame they looked abroad and found their nirvana.

 

[routine_analyst]

While diversification is good, it comes a bit too late with signs that China has become an antagonist in that region from years of collecting paychecks from acting as the world's factory.

Recent battles with India on the Indian border, building out a vast network of disputed war islands as platforms for military dominance, Hong Kong treaty violations, Muslim + Catholic internment camps, COVID disappearances, recent talks about forced "reunification" of Taiwan and threats toward sovereignty of Vietnam + South China Sea territory... Japan rearming navy in response to China becoming a blue waters navy...

China ain't going nowhere. This and very little mention in the news about China and Russia partnering to replace US dollar currency in the region... gotta love the media and it's hype over little ****, meanwhile all this and a bag of chips on the edge of WW3.

Great! Move the manufacturing to smaller platforms in a region that will soon be up in smoke.

Biden/Harris will most certainly reverse all of the trade war elements and we'll be soon funneling cash back into the Chinese economy. A country The Washington Post recently praised, stating communism promises "a better future" for it's youth.

Trump views China’s Communist Party as a threat. Young Chinese see it as a ticket to a better future.

Potential members are using twin crises of coronavirus and floods to prove their allegiance to the party.

www.washingtonpost.com