Monday, March 2, 2020

Foreign media: Apple cannot micro-depend on China's electronics industry chain in the short term

Apple CEO Cook traveled to India around 2016, hoping to establish another production base, but there are currently a few low-end products that can be produced in India
iSimu iPhones

Sina Digital News March 3 morning news, foreign media 9to5mac quoted a Wall Street Journal article today, reported Apple's dependence on China's electronics supply chain, and led to the view that this dependence is unlikely to change in the short term.
Apple's chief of operations is said to have advised Apple as early as 2015 "to move the assembly of at least one product to Vietnam." They believe that this could allow Apple to restart "many years of training workers and create a new component supply", but Apple executives rejected the idea, it seems because this transformation is too challenging to implement.
They also produce some old iPhones in India, such as the iPhone SE, because India has a higher tax rate on non-locally manufactured products. Apple does this more to give its products a price advantage in the local Indian market. They also have iPhone11 planned to be produced in India. Originally, this approach marked a major shift in Apple's strategy. If successful, the iPhone 11 would become the first new iPhone of the year to be manufactured outside China.
But when the Indian production line for the iPhone 11 was actually established, Apple stopped this effort. People familiar with the matter said that India was unable to provide skilled workers at the time and was not ready to provide the robust infrastructure that Apple expected.
This makes Apple still have to choose to produce iPhone in China. Of course, when it comes to production issues, Apple always stands out that the iPhone is "made around the world" and not in China.
Therefore, even if China's new coronavirus epidemic continues, once Apple's supply chain has an impact, it is still unlikely that Apple will transfer its iPhone flagship products outside of China.
A person familiar with Foxconn's overseas business said that Apple is unlikely to shift its most expensive iPhone production to India later this year. The person said that the supply chain has not yet been established and Indian workers are not yet ready for training to produce high-end products.
Recently, Apple suppliers and production partners have been affected in China, South Korea and other countries due to the impact of the new coronavirus epidemic. Some have even begun to worry about whether the development and trial production of the iPhone 12 will be completed as scheduled.

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