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Major iPhone Supplier Planning Further Push Into India as Apple Looks to Diversify Supply Chain
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I'd like to see Mexico improve it's tech manufacturing position. If not Mexico, somewhere in South America.
Many components are manufactured here in the US. It would be difficult to do final assembly for various reasons. That's why I'm always advocating doing more in Mexico, including final assembly. Doing so would improve our ability to get more component suppliers operating in the US as well due to proximity.
Finally Foxconn's iPhone production site in India will ship the new 6.1" iPhone 14 almost simultaneously with China for the first time in 2H22 (India being one quarter or more behind in the past). according to Ming-Chi Kuo.
It's better to diversify apple production from China. Future it will be very risky to all foreign companies in China and to Taiwan.
I think between lockdowns and whatever is brewing with Taiwan, China's golden years have come to an end because nobody will want to deal with them. Diversification is never a bad idea anyway for manufacturing. I remember when Thailand had a flood and as it was a large source for hard drives it was impossible to get a cheap drive for a year or so after as the supply was affected.
Thailand, Indonesia, Malaysia yes?
No, Thailand, Malaysia, and Indonesia people are very slow, religious, minimalistic, non-competitive and laid back. They don't have the same work ethics and STEM inclination as the East Asians and the Vienamise.
Also, you must share a land boarder with China or have very easy to access sea ports with China for the free flow of equipments and materials to be successful.
For low-tech manufacturing such as low-end textile, Sri Lanka and Parkistan are the best alternatives to China. China still dominates high-end textile manufacturing though. Luxury brands would still choose China for high-quality textile or leather work. The perception of Made in China products are of low quality is because you get what you pay for. If you pay top dollars to get things manufactured in China, the qualities are far better than you can get anyway else.
A good option would be Singapore, but it's too expensive. It's as if you want all your stuff to be manufactured in Shanghai or Tokyo.
Indonesia and Thailand manufactures a lot of cars and used to make a lot of hard drive. Why are those South East Asian countries more religious and non competitive with less STEM, etc, than Vietnam?
I see, having land border with China is a plus on that end for sure and I agree with Singapore being too expensive.
Because you have to analyze demographics and ethnic origins. If a country is predominantly Buddhist, then they will be very slow (Thailand). If a country is predominantly Islam, then they will be very very religious, which impacts modern productivity (Indonesia).
Vietnam is heavily influenced by China, they were a part of China some of the time in the past 1000 years or so. With the exception of North Myanmar and Vietnam, none of the SE Asian countries were apart of China culturally or ethnically.
Myanmar is not stable enough for industrial FDI. They export raw material to China and they are an important link in the BRI.
Thank you! This is very interesting! A very insightful way of seeing how value evolves.
In your knowledge/opinion, what is it that East Asia have that makes them very productive, origins wise?