Apple depends on a small number of very large factories in China and Taiwan for much of its product assembly. But, harsh CCP-imposed COVID lockdowns in China are spawning pushback and protests, jeopardizing iPhone, Mac, and other products’ production, leaving Apple with few options in the near term.
Timothy Green for The Motley Fool:
In mainland China, Foxconn’s assembly lines churn out Apple products at an immense scale. Foxconn’s main plant in Zhengzhou employs 200,000 people, and the company is ultimately responsible for around 70% of global iPhone production.
There have always been massive risks associated with Apple’s manufacturing strategy, and they have been well known for years. For one, depending on such a small number of suppliers for something as critical as iPhone assembly puts Apple at risk of major disruption if something goes wrong at one of those massive plants.
That concentration risk is supercharged by the fact that these plants are largely located in China and Taiwan. Relations between the U.S. and China are tense, and Taiwan is caught in the middle of that souring relationship…
The fragility of Apple’s approach to manufacturing didn’t matter until it suddenly did… Apple’s profits have surged over the past two years, but there’s a real chance that some of those gains will be unwound as the company grapples with challenges posed by its extreme dependence on China.
MacDailyNews Take: Yup.
See also: Tim Cook firmly latched Apple onto China’s CCP teat. What’s his plan for weaning it off? – MacDailyNews, November 2, 2022
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All the more reason to shift production to other countries.
No easy task. It would likely mean a squabble with China getting the production line disassembled, or more likely having to start anew. Doable, but not quickly. A big gap in production will hit them quite hard even if they can weather it. It will push the price of second hand items through the roof.
Apple are a cunch of bunts – and are turning into their own No1 Hayter – applecyntnic
Maybe some more virtual signaling will help.
Corporate M&As with junk bonds.
Exodus of US companies to China.
Taking in the religious right along with their prejudices.
Trickle down economics.
Making “liberal” a bad word.
All under Reagan, which brought us to today.
Ah, applecyntnic, the biggest cynt on MDN.
“Corporate M&As with junk bonds.”
Agreed.
“Exodus of US companies to China.”
The vast exodus took place under Clinton after passing NAFTA greatly accelerated interest in China.
“Taking in the religious right along with their prejudices.”
I’ll take in religious right any day, at least they worship a higher power. While you take in the radical left HATE groups BLM & Antifa killing people, assaulting police, burning federal buildings, police stations and minority businesses. Damages in the billions criminals mostly walking scot free or never charged. No comparison, like comparing a serial killer to a traffic violation.
“Trickle down economics.”
Trickle down government putting citizens on a dependency short leash.
“Making “liberal” a bad word.”
Liberals did that to themselves and not exclusive to Reagan started decades before, certainly WOKE WORST under Biden and the squad.
“All under Reagan, which brought us to today.
Bull crap! Guilt by association and worse, inference doesn’t cut it. I could write VOLUMES listing Reagan’s amazing accomplishments mainly pulling us out of malaise recession and Iran hostages freed. Biden made Jimmy look good and you can’t compare either one to the HISTORICAL GREATNESS of Ronald Reagan!!…
The religious right is a blight to society. Pick a lane, religious or right. Live your life and leave others to live theirs.
China exodus started, Began to snowball, but did not peak under Reagan.
Citizens in a dependency short leash, and corporations and the wealthy on a long one. All corporate welfare.
Constitution is liberal. A good thing.
“The religious right is a blight to society. Pick a lane, religious or right.”
The woke fanatic extreme left is worse than blight and right — removing and defacing historic statues, burning down cities coast to coast — their INTOLERANCE the greatest threat out to destroy our Republic and Constitution from WITHIN.
“Live your life and leave others to live theirs.”
Agreed.
“China exodus started, Began to snowball, but did not peak under Reagan.”
“In 1982, U.S. multinationals had 30 percent of their labor forces abroad; in 2014, the share had doubled to 60 percent. None of these foreign sites was more popular than China.”
— ForeignPolicy.com
“Citizens in a dependency short leash, and corporations and the wealthy on a long one. All corporate welfare.”
I have a problem with BOTH. Biden just created the largest GREEN corporate welfare bill in the history of planet Earth. You know, you’re Blue Team and not a peep out of you. Remember Solyndra?
“Constitution is liberal. A good thing.”
If the Constitution written by 100% white males was liberal, then why are ONLY liberals out to destroy it and replace with Socialism?
Me thinks you are addicted and adept at slinging quick quips and LABELS. Take some time to think things through. Brevity is brilliant only when it takes all sides and history into account…
Poetic Justice is coming for Leftist BIG BUSINESSES. Sporting sanctimonious virtual signaling 24/7 on the outside, but on the inside turned out greedier and more irresponsible to country and workforce.
Once upon a time Democrat unions through media mouthpieces painted ALL corporations big bad greedy Republican. NYT, 60 minutes and media outlets nationwide in the 70s and 80s exposes of slave labor in China and elsewhere reporting active company boycotts over human rights abuses.
Child’s play compared to abuses going on today. Yet with Democrat systemic hypocrisy at an all-time HIGH, the Leftist activists and Big Media remain erringly silent.
Seems virtue signaler CEOs and their companies are just as greedy, but in Apple’s case, Cooked into the business plan with no clear way out.
If Apple was run by conservative Republicans in pursuit of profits at all costs, would the media and Democrat Party maintain their silence as they do now?
Bottom Line: What goes around, comes around eventually and paybacks are hell…
Let’s face it, you’re a culture warrior. As is your right, what is t your right is imposition of culture.
Woke is when people stop shopping at DICK’S over stopping gun sales, or stop supporting the NFL over protest kneeling. Again, it’s their right, but it’s hardly left.
Woke and cancel are people voting with their money. At all times, then and now, the fault lies with corporations choosing money over people. That’s why we have regulations.
“It isn’t so much that liberals are ignorant. It’s just that they know so many things that aren’t so.”
― Ronald Reagan
“Let’s face it, you’re a culture warrior. As is your right, what is t your right is imposition of culture.”
Technically correct, but incomplete. What I am is a Patriot DEFENDER of the U.S. Constitution and American way of life.
I don’t impose anything on anyone! I defend anything to do with Life, Liberty and the Pursuit of Happiness. Reads like you have all people on the right seriously confused by your penchant for leftist labels and stereotypes.
“Woke is when people stop shopping at DICK’S over stopping gun sales”
You could not have picked a WORSE example. You’re not woke by boycotting a legitimate successful business and the Second Amendment. You’re DUMB. The same ill informed idiots should be boycotting Apple over slave labor profits and removing Airdrop in China working with the Communists to SILENCE their citizens. Hello?
“Stop supporting the NFL over protest kneeling.”
Interesting that Joe Q. Citizen with other mom and pops protest against a self righteous leftist NEBULOUS protest. I’m for players protesting whatever they can’t define, OUTSIDE the game. I’m against kneeling during the national anthem TOTALLY DISRESPECTING the flag, but more importantly veterans who died for their country. Players are not paid to protest during a game. That’s just WRONG.
“Woke and cancel are people voting with their money.”
Woke is the disease and Cancel is the diagnosis.
“At all times, then and now, the fault lies with corporations choosing money over people.”
Apple the Gold Standard…