HP, Microsoft, Google, others plan China production reduction

Cheng Ting-Fang, Lauly Li, Coco Liu, Shunsuke Tabet for Nikkei:

The decision by some of the world’s biggest computer and game console brands to shift production — mainly of products destined for the U.S. — follows manufacturing reviews by other tech companies.

Apple is exploring the cost implications of moving up to 30% of its smartphone production, Nikkei reported last month. Elsewhere manufacturers of servers, networking products, and some key electronics components are shifting out of China, often at the request of U.S. customers.

The moves will be a blow for China’s electronics exports, which have powered the country’s decades-long growth. China is the world’s biggest producer of PCs as well as smartphones.

Total Chinese imports and exports in the electronics segment ballooned 136 times to $1.35 trillion in 2017 from just over $10 billion back in 1991, according to Chinese data provider QianZhan.

MacDailyNews Take: Apple’s share price continues stable over $200, despite trade war uncertainties and the departure of Jony Ive – though hopefully a US-China pact is coming.


  1. Trump acquiesced on Huawei so China would purchase more agricultural products in an attempt to save his butt in the farm states. So much for Huawei being an existential national security threat. In essence, this means the trade war is essentially over.

  2. Maybe we can have them built in El Salvador, Honduras and Guatemala? Then these people will have jobs and we dont have the long shipping issues and it solves our immigration issue.. but lets just move to India instead.. or Ireland??? WTF? Its baffling why we go half way around the world for cheap labor when its only 1000 miles to the south and they aren’t even Communists! Mexico is another alternative with a higher education level than even Central America and still cheaper labor.. its obvious the government and the companies in this country can’t see what’s right in front of them!

  3. Well good luck to them.

    Foxconn with big fan fare and Apple urging set up a plant in Brazil to make Apple products years ago.

    It was supposed to have 100,000 workers. It never ever achieved anything like that , huge areas are undeveloped , worker numbers shrunk until by 2017 it had 2500 workers (vs some Foxconn sites in China withb 250,000)

    article quote:
    “When Terry Gou, the founder and chairman of Foxconn, discussed Brazilian labor in the past, his take was withering.
    “Brazilian workers’ wages are very high. But Brazilians, as soon as they hear ‘soccer,’ they stop working. And there’s all the dancing. It’s crazy,” he told the Wall Street Journal in 2010.”

    I posted elsewhere on MDN some reasons why the new MP is being built in China. various articles showed Apple couldn’t get workers in USA to work there and they couldn’t get parts from associate companies. Causing delays. Remember an assembly plant does not work in isolation, there’s a whole eco system needed with hundreds of associate companies providing parts. The situation was so bad one ridiculous incident showed the CEO of a specialist USA screw factory delivering 28,000 screws desperately by himself in batches in his LEXUS SEDAN!

    I believe the new MP was so delayed because Apple was trying desperately to figure out how to build in the USA. They knew it would be a big political hit if they closed it and went to China. Blogs showed how Apple engineers complained they couldn’t do what they could with the USA MP design as with their other products like the complicated iMacPro built in China (as are most PCs)

    i know i’m going to get down voted because people simply hate china. I’m not excusing things like IP theft, I’m just quoting facts . Go research what i’ve said yourself.

    I live on the West Coast in small high tech town with thriving small scale manufacturing. They make drones, underwater robots , buoys with advanced electronics , yachts and other watercraft etc. These are the types of manufacturing that North American blue collar workers want, not turning (the Same) screws sitting on a bench building thousands of iPhones day in day out.

      1. Apple and Steve Jobs tried manufacturing in USA. Early Apple’s and Macs and Next computers were built in USA. Next computers had the most advanced OS at the time Nextstep (which became OS X).

        (Job’s Next computers were built in Fremont california in one of the most modern factories in the world designed by Jobs himself.}

        but when they came out Nobody would buy them when PC makers sold cheaper overseas made Windows PCs. The government wouldn’t buy Next machines even Jobs himself was the salesman and begged, everybody complained Macs. Next machines were too expensive.

        From Apple’s 30% PC market share dropped to 10%. and kept falling.
        Apple had superior hardware software, the issue was PRICE.

        Very few said buy Macs or Next PCs because although more expensive were made in USA.

        when jobs returned to Apple he hired Cook from IBM/Compaq IPC makers) to fix the supply chain and cook improved the China, Korea etc operations . Today iPhones are about the same price as high end Androids and Apples success is legend.

        what i’m saying you’re blaming corporations but not consumers who just want cheap or value for their buck.

      2. Flamers, people who keep screaming at Apple building in China…

        How many articles in Zdnet, Techcrunch, ComputerWorld, etc etc have said that Apple’s Cylinder Mac Pro is overpriced for it’s power vs PC counterparts ? (Cylinder built in USA vs PCs from Asia btw).


        How many articles have regardless of this ‘overpricing’ have argued consumers should STILL buy the Mac as it is built in USA?

        Zero ?

        have you seen Zdnet say “We urge our readers to buy the Cylinder Mac regardless of price performance as it’s built in USA ” ?

        I’ve personally never seen one but I’ve seen countless articles comparing PRICE of Cylinder vs PCs and the Cylinder coming off worse, i.e USA publications telling people NOT to buy the Cylinder (and buy that cheaper Samsung, Acer, Lenovo etc instead).

        Have many politicians and activists now complaining about manufacturing in China have you heard say BUY the CYLINDER MAC, it’s MADE IN USA !! Does the Senate, Congress, Pentagon etc have thousands of Cylinder Made in USA Mac Pros ?


        1. Hey down voter:

          here’s a typical Article I just copied after 10 second search:

          “Cylinder Mac Pro Vs PC

          If we normalize the average of our results to the Mac Pro, you get a great idea of how it compares to either of our PC workstations. To make it short: a PC can be significantly faster than the Mac Pro at a much lower price. Depending on the task, we saw on average a 22-37% performance gain with the Core i7 6950X workstation and a 31-66% performance gain with the Core i7 7700K system”

          I can find dozens if not hundreds of articles and videos like this.
          As Apple couldn’t update their USA made MP fast enough due to limitations of the USA factory and eco system (see above posts) PCs overrun the Cylinder. (this is simple fact)

          ON other hand how many articles can you find saying buy the Cylinder regardless simply as it’s Made in USA ?

          At the end of the day consumers and tech sites don’t care, regardless of how much they pretend to flag wave.

          (I’m typing this on Cheese Grater Mac Pro so I’m a Mac Pro USER. So I’m not biased against apple computers. I’m just saying regardless of the patriotic spiel at the end of the day Joe consumers value price performance. ).

  4. People will say they want Made in the USA.. but when they purchase they buy the cheapest product at the same performance level.. We are now at the point where an iPhone is 1K.. if they made it in the USA the iPhone wouldn’t exist! Let me take a poll.. how many people will pay more because its made in the USA vs. made in a cheap labor company.. lets make it fair. If Apple made an iPhone in the USA and it costs 1500.. and made in china and it costs 1K.. the same parts and everything is the same.. How many will pay 500 more to BUY USA? LMAO!!

  5. Currentinterest,

    This trade war is far from over. Trump through a bone over a small part of Huawei and Xi threw a small bone over some agricultural purchases. That’s it! And what is the result? The two sides have agreed to go back to the negotiating table.

    To be frank, I don’t think either side will give in in the short to medium term and the result of all of this is a gradual slowing of the international economy. That’s the downside and the upside is that it’s better to have the U.S.A and China talking than fighting each other.

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