This video explains Apple's continued reliance on China for iPhone manufacturing, despite pressure to relocate production. The main reasons highlighted are not just lower labor costs, but China's unique ability to produce iPhones on a massive scale to meet Apple's high standards [02:05].
The video also points to the volatility of demand for iPhones, with sales peaking between September and Christmas [03:34]. Apple's strategy of holding minimal inventory requires a flexible workforce that can be quickly scaled up or down, which China's labor system provides [03:56]. China's hukou system creates a large pool of migrant workers who are available for temporary factory jobs, making it easier for manufacturers like Foxconn to adjust their workforce as needed [07:19].
Furthermore, the Chinese government actively supports Apple's manufacturing with incentives like tax breaks and dedicated infrastructure [13:21]. This has resulted in efficient industrial clusters where suppliers and expertise are concentrated, making production faster and more cost-effective [11:35]. The video concludes that Apple's business needs are well-aligned with China's economic goals, as the government is willing to go to great lengths to support the company's manufacturing in the country [15:13].
TACO Trump no balls to tariff Apple products to make them reshore.
Let's face it, no way this type of manufacturing will US citizens want to be working! Damn repetitive, mindless and no security. Only few months of intense work then kick you out! Flexible workforce!
It's impossible to match PRC tooling skill and production efficiency, certainly not the angmoh who has grown lazy throughout the years. If u want them to work and deliver equally, be prepared to pay at least double the labor cost today.
No businesses in their right mind will pay for this.
China cant be supplying labours forever. It will get harder n harder to find workers willing to work long hours, lots of instructions n rules, yet very low pay. They will eventually replace the workforce w robotics.
This could potentially change the manufacturing location
India and vietnam, but will require years to build the infra, train ppl etc. MNC dun got time for delay. Even want setup in DC take years until they decide to build elsewhere.
Let's face it, no way this type of manufacturing will US citizens want to be working! Damn repetitive, mindless and no security. Only few months of intense work then kick you out! Flexible workforce!