What happens when Apple gets kicked out of China?

[Tekguy0]

While I suppose this thread could also go in the Politics Forum, I think that it also belongs here since this question will (In my view) apply to most of the US tech industry at some point.

Anyways, given the increase in tension between the two countries and tit-for-tat actions being taken against western companies by China and chinese companies by the US (and allies), I think it is likely that at some point, Apple will get kicked out of China as they want their consumers to buy Huawei, Oppo, Vivo, ZTE, etc. Essentially, there will be a decoupling in the tech world. Will Apple have to reorient to India? What about manufacturing, since that is all in China? Obviously, Apple's stock price will fall significantly, but what is next for Apple when this happens?

 

[0128672]

Apple Suppliers Plan Major Production Move to India

An unspecified Apple supplier is planning to move a significant amount of production operations to India, according to The Times of India. The...

www.macrumors.com

 

[Madhatter32]

They'll look at other cheap labor countries. India and Vietnam for assembly I would think.

 

[ian87w]

Apple won't be kicked out of China as the factories are employing a lot of Chinese workers. If Apple left, the volume Foxconn need will be less, and thus less workers, and that won't look good for China on their numbers. China will still want Apple make stuff in China. The Chinese government is very sensitive in making sure that China look great and growing economically from the outside.

As for the consumer end products, if the ban goes, Apple will be basically a tiny player in China, akin to Samsung is now in China(maybe even smaller). There will still be people buying iPhones, but marketshare will definitely drop.

Imo it's time for Apple to shift their focus on SE Asia. Eg. in my country Indonesia, there are actually a lot of Apple users, more than I would expect. But Apple's pricing is extremely ridiculous. A base iPhone 11 64GB is around USD $900+. The new Samsung Galaxy Note 20 Ultra is actually cheaper than the iPhone 11 Pro Max over here. Pricing wise, Apple is nowhere near competitive with the likes of Samsung. They basically riding on their own brand image. If Apple can put some effort to ensure their pricing to match their own original positioning, I can see Apple being highly competitive. One can argue about affordability, but that doesn't even stop Samsung from releasing their most expensive Galaxy Fold and Z Flip in the country. So that means there are plenty of room for iPhones. Apple just need to work on the stupid pricing.

 

[2984839]

I hope they do. When you make a deal with the devil, don't be surprised when he comes to collect.

The amount of dependence the tech industry has on China for manufacturing is unacceptable and dangerous to the market. It's high time that supply chain became diversified.

 

[TiggrToo]

I hope they do. When you make a deal with the devil, don't be surprised when he comes to collect.

The amount of dependence the tech industry has on China for manufacturing is unacceptable and dangerous to the market. It's high time that supply chain became diversified.

Apple are already doing just that. And they’re not alone.

 

[Tech198]

They'll look at other cheap labor countries. India and Vietnam for assembly I would think.

Just as long as the quality doesn't decline as well, I don't care where they assemble.

https://www.nytimes.com/2019/01/28/technology/iphones-apple-china-made.html

I wouldn't wanna priority screws over my device.