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Iphone Businesses China United States Apple

Apple's US iPhones Can All Be Made Outside of China If Needed, Says Foxconn (bloomberg.com) 126

Posted by BeauHD from the say-the-magic-word dept.
A senior executive at Foxconn says they have enough capacity to make all iPhones bound for the U.S. outside of China if necessary. Bloomberg reports: China is a crucial cog in Apple's business, the origin of most of its iPhones and iPads as well as its largest international market. But President Donald Trump has threatened Beijing with new tariffs on about $300 billion worth of Chinese goods, an act that would escalate tensions dramatically while levying a punitive tax on Apple's most profitable product. Hon Hai, known also as Foxconn, is the American giant's most important manufacturing partner. It will fully support Apple if it needs to adjust its production as the U.S.-Chinese trade spat gets grimmer and more unpredictable, board nominee and semiconductor division chief Young Liu told an investor briefing in Taipei on Tuesday. "Twenty-five percent of our production capacity is outside of China and we can help Apple respond to its needs in the U.S. market," said Liu, adding that investments are now being made in India for Apple. "We have enough capacity to meet Apple's demand."

This is particularly noteworthy because the U.S. market accounts for one in every four iPhones sold worldwide, "so it represents a huge portion of Foxconn's manufacturing business inside China," Strategy Analytics analyst Neil Mawston said.
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Apple's US iPhones Can All Be Made Outside of China If Needed, Says Foxconn More

Apple's US iPhones Can All Be Made Outside of China If Needed, Says Foxconn

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  • Bet they can't make dupes as fast as /. (Score:5, Informative)

    by TigerPlish ( 174064 ) on Wednesday June 12, 2019 @05:08AM (#58748916)

    Dupe de dupe dupe dupe dup dup

    Who says you have to go overseas for volume manufacturing?

    • Who says overseas volume manufacturing needs to be in China?

      Just because it isn't made in China, it doesn't mean it is going to be made in America.

      We will just be paying more for our devices, without bringing in any additional jobs to the States.

      • Re: (Score:2, Insightful)

        by Anonymous Coward

        I agree that no manufacturing will happen in the US, but no, we won't be paying more for our devices. If you pay attention to international markets, you'd know that wages in China have been rising fast. And there's not a huge advantage in price of labor in China any more. Still cheaper than the US, but now it's like 1/3rd or 1/4th the price, not 1/100th the price. Because of this, a few years ago manufacturers started ramping up in cheaper markets. I in fact made a killing in either 2016 or 2017 bettin

        • . I in fact made a killing in either 2016 or 2017 betting on a manufacture ramp up in Vietnam.

          Your unnecessary and redundant addition of the word "either" reveals unconscious embellishment and betrays the fact that you're lying.

          • Your unnecessary and redundant addition of the word "either" reveals unconscious embellishment and betrays the fact that you're lying.

            Not everyone has impeccable memories (just so we are clear: I'm not the AC.) I don't even remember what I did last year, nevermind three or four years ago.

        • Re:Bet they can't make dupes as fast as /. (Score:4, Insightful)

          by caseih ( 160668 ) on Wednesday June 12, 2019 @09:15AM (#58749642)

          Labor costs haven't been a real factor in companies placing manufacturing in China for some time. The real advantage to manufacturing in China is the supply chain. Every possible component, electronic or mechanical, is readily available there. Not so here in North America. And although labor is cheap in Vietnam, they still would have to ship all the parts from China. It's been quite fascinating to watch the "Strange Parts" YouTube channel about this sort of thing.

          • The real advantage to manufacturing in China is the supply chain. Every possible component, electronic or mechanical, is readily available there.

            Shipping around the world is so cheap that if you know what parts you need in advance, every possible component is readily available anywhere.

    • Re: (Score:2)

      by gtall ( 79522 )

      From what I recall of the article, Foxconn mentioned their facilities in India. They aren't moving any production back here no matter what lies *some* have publicized.

  • The question isn't if they can or not, It's if they are willing to pay for it and how much of that will they pass on or absorb.

  • Final Assembly (Score:5, Insightful)

    by LarryRiedel ( 141315 ) on Wednesday June 12, 2019 @05:19AM (#58748936)
    They're talking about final assembly of the iPhone, not the manufacturing of the constituent parts. Either way, the "trade spat" is giving everybody more leverage over the PRC Politburo Standing Committee.

    • Re: (Score:2, Insightful)

      by AmiMoJo ( 196126 )

      This gives no leverage at all. If it goes on long enough it will just force China to retaliate further.

      It will be the usual Trump "victory", like the recent Mexico deal. Undefined goals, so no way to measure success or failure, and eventually a little deal is done that allows him to claim victory. The question is how much pain will you have to endure before it happens.

      • Re: (Score:2, Insightful)

        by Anonymous Coward

        Undefined goals, so no way to measure success or failure, and eventually a little deal is done that allows him to claim victory. The question is how much pain will you have to endure before it happens.

        It is far worse that that. He is not accomplishing anything, and in the process he is hurting the economy by placing a large tax that mostly goes to those at the bottom, so basically he is making things worse. Also, a tariff policy with metrics and goals designed to do one thing, such as tariff goods higher that are produced in countries that pollute more, as a way to reduce pollution might have had a positive impact, since the tariffs could have been automatically reduced as environmental controls improv

        • Re: (Score:3, Interesting)

          by AmiMoJo ( 196126 )

          I'd love to know what goes on in his head. Take the recent claims that China pays the tariffs. White House staff claim that it's what Trump actually believes, but it seems so ludicrous I find it hard to accept, even from him.

          When he does stuff like re-stock the swamp with his own people, does he believe he is actually doing something else, something better, or is he fully aware? When he lies about random, trivial things, is that a conscious decision or does it work on some subconscious level where things th

          • Re:Final Assembly (Score:4, Interesting)

            by JustAnotherOldGuy ( 4145623 ) on Wednesday June 12, 2019 @10:27AM (#58749938) Journal

            Take the recent claims that China pays the tariffs. White House staff claim that it's what Trump actually believes, but it seems so ludicrous I find it hard to accept, even from him.

            He's so ignorant of everything, I wouldn't be surprised to find out that he does actually believe that China is paying the tariffs.

            It's obvious he doesn't know anything about business, how the government works, basic civic administration, and a host of other things. He's a gold-plated moron who grew up wealthy and as a result never had to learn anything.

            I honestly doubt Trump could figure out how to buy car insurance, compare prices in a grocery store, or change a tire.

            He's never had to overcome a challenge or figure anything out- he's always had someone else to do the miscellaneous day-to-day tasks that you and I do all the time.

            Remember, this is a guy who thinks that windmills cause cancer and that you need ID to buy groceries. I literally know of no one else who's that uninformed.

            • Re: (Score:3)

              by AmiMoJo ( 196126 )

              I wonder what he thinks about his failed casinos. Does he consider them to be some kind of success? Or blame someone else?

      • Trump is a moron but the problem remains. (Score:2, Insightful)

        by Anonymous Coward

        Actually unlike the Mexico non-deal and unnecessary threatening for no actual gain, it's necessary to hold China's feet to the fire. It has nothing to do with Trump, he's obviously the most senile American businessman since 1985-1994.

        With China there's no hope that Trump will convince anyone of anything they don't already know or scare them into a position. What will happen is he'll do his usual junk yard dog barking act, acting crazy, being crazy, saying stupid shit constantly, and eventually China's eco

      • Re: (Score:1)

        by gtall ( 79522 )

        The Mexico Deal is actually a bit more shaky than even that. Mexico is promising 6000 National Guard troops to the Guatemala border. That the National Guard they don't currently have but are promising to stand up....soon...any day now, in fact....right nigh tomorrow...in the fullness of time.... Trump bargained for a hill of beans and declared Victory with Honor, in honor of Richard Nixon.

      • Re: (Score:2, Troll)

        by drinkypoo ( 153816 )

        The recent Mexico deal isn't a personal victory for Trump anyway. The important details were ironed out by his outgoing head of DHS. Then he claimed that the threat of tariffs was responsible. What a disingenuous dickbag.

      • This gives no leverage at all.

        Well, shit... if it's you saying it, its got to be true.

      • Re: (Score:2)

        by AHuxley ( 892839 )
        Winning. All that US tech returns from a Communist nation :)

      • Re: (Score:2)

        by jwymanm ( 627857 )
        Because we shouldn't care about the long game at all, right? We should worry about MONTHS of "suffering" (look out your window nothing is bad) instead of years down the line when we have zero production of rare earth metals, our own metal, textiles, damn near all electronics, relying on oil elsewhere, etc etc. Yeah that makes great sense. Why does the news focus on the now so much to try to discredit ANY change?!? It's like HEY THOSE TARIFFS put in last wednesday are killing America? WTF. You literally cann
  • There is a popular idea among less informed American voters that a trade war with China would destroy the Chinese economy. This is preposterous. Not only do Chinese exports make up about 20% [snbchf.com] of the Chinese economy, but exports to the US consist of only 20% [worldstopexports.com] of that. So if the US and China completely stopped doing business it would immediately hurt the Chinese economy... four percent!

    • Re: (Score:1)

      by Anonymous Coward

      China's currency is propped up quasi-exclusively by owning American T-notes. It's a "you've got my throat but I'm cupping your balls" maneuver. Nobody wants to do anything real rash as a result, both parties would be damaged.

      If the US decided to go to full economic war with China, it would hurt the Chinese economy... 100 percent. Their pink asswipes wouldn't hold 50% value after a week.

    • There's plenty of "US" products - like the iPhone - being manufactured in China and exported to the rest of the world, not just the US. If Apple starts producing its phones for the US markets outside of China, they may well find it convenient to move all production out of China. Also, when the US expressed concerns over Huawei spying on the US and issued a ban, allies and other countries quickly followed suit. The American influence on China's economy well exceeds 4%.

      • 100% of those devices are currently made in China, and it's questionable whether foxconn actually has that much capacity online in the US yet. Virtually all the stuff they're made from also comes from China, like most of the components. The tariffs will still affect iDevices.

    • However historically many US Allies tend to mirror US policies. So while China can weather the economic impact of US trade, but if its allies get on board and match then there are more problems.

      That said, The Trump Administration hasn't done a really good job keeping its Allies inline with the US.

      • Re: (Score:2)

        by gtall ( 79522 )

        Trump has been actively kicking allies in the knees, why should they following down the rat hole?

        • That is the worst part about being the Adult in the room. If they dump the US right now, and in luckily a year and a half, or less then luckily 5 1/2 years in the future there is new leadership who is back to making America the standard of power and influence. They don't want to start from step one to rebuild their relationships.

  • Seriously underestimated how long this show would go on, what are we on now season 11?
  • and we will tell you daily!

    • Re:We can still build them (Score:5, Insightful)

      by AHuxley ( 892839 ) on Wednesday June 12, 2019 @08:58AM (#58749602) Journal
      That can go to Indonesia, Malaysia, Taiwan the real China, Vietnam, Cambodia, India, Thailand.
      The new robots and more advanced production lines are ready.
      Smaller parts no longer need what China had to offer.
      What once would have been the next upgrade in China can be done for less outside China.
      No Communism needed.

  • I am sure others have already commented on this, but this being Slashdot I won't bother checking.

    So ...
    this story is a duplicate of one posted yesterday.

    https://mobile.slashdot.org/st... [slashdot.org]

  • "Apple's US iPhones Can All Be Made Outside of China If Needed, Says Foxconn"

    Sure they could be made here, they'd just cost twice as much.

    The only way they could be made here at any reasonable price point is if the manufacturing was done 100% through robotic assembly, testing, and packaging.

    But then Apple expects people to pay $1000 for a monitor stand (!!), so maybe the suckers would be happy to stand in line to buy an iPhone for $3000.

    • Re: (Score:2)

      by jwymanm ( 627857 )
      The labor would cost twice as much. Not the product. Labor is what, 1/1000th the price? This race to the bottom for corporate maximum profit taking should be hated by liberals yet it's the opposite because what? What is your endgame about supporting China production? Tell me. You want to help China that bad? Move there and tell me if you want to keep helping them. Every dollar you send over there is two dollars used against us.

      • Labor is what, 1/1000th the price?

        Wrong. Labor is one of the most expensive parts of most manufactured goods.

        For example, do you know what the most expensive part of most vehicles is? It's not the engine or the body or the drive train, or even the interior. It's the worker's health care and pension plan (if any). Look it up.

        Ever wonder why there are virtually no phones made in America? (And I don't mean "sold", I mean actually made and assembled.) I'll tell you: it's because the labor costs are prohibitive.

      • IIRC a study said the difference in labor would add $5. But that's before the Apple Tax, which is defined by the maximum amount they think they can possibly add for the small improvement they offer. So even if $5 or 1/1000 was right, you know Apple would blow it up to "we have to add $500 or $1000 to the price because of this massive extra cost to us!!"
  • It's good to know something I'll never buy can be made outside of China. Will these "other places" also have suicide nets under their windows? Oh ya, FUCK APPLE.

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