Unwinnable
Trade War
There's the politics, for one, and that's a massive factor. Unless things clear up, there's the potential for a big tariff and a hefty price increase which Apple seems likely to subsidize, as it's worried about extra costs now. Maybe this is politics to placate China's government, especially after the reports that Apple was getting ready to move some manufacturing out of China to countries in Southeast Asia
Apple plans to move some manufacturing out of China, reports Nikkei
Apple is exploring moving between 15 and 30 percent of its hardware production out of China, according to a new report by Nikkei. The company reportedly has a growing team looking into moving production, and has asked key manufacturing partners like Foxconn, Pegatron, and Wistron to evaluate the available options.
The catalyst for the shift is the ongoing trade war between China and the US, which is expected to intensify at the end of this month with the introduction of 25 percent tariffs on devices including phones, laptops, and tablets. However, Apple reportedly wants to shift production regardless of whether the trade dispute gets resolved.
”A lower birthrate, higher labor costs and the risk of overly centralizing its production in one country. These adverse factors are not going anywhere… with or without the final round of the $300 billion tariff,” one executive, apparently from an Apple supplier, told Nikkei.DYI: Anyone thinks that outsourcing is over by Trump’s trade war with China is deluded. Now that China is far more expensive manufactures are looking and many have already moved operations to lower labor cost countries such as Vietnam. The only time manufacturing will return to our shores is with extreme levels of automation cutting out labor costs. The days of vast employment for America in manufacturing are long since over just as farming once was a huge employer but machines/automation replaced vast farms hands. Get used to it outsourcing is here to stay.
DYI
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