
Does Tim Cook have a Plan B in China? - edward
https://www.economist.com/business/2019/05/30/does-apples-boss-have-a-plan-b-in-china
======
nabla9
> “Designed by Apple in California. Assembled in China”.

More accurately: "Designed by Apple in California. Components from Taiwan,
South Korea, Japan, USA and China. Assembled in China."

If you count the value added in China, only $8.50 of the cost of iPhone comes
from China. Chinese import components to assemble iPhone.

Slapping $160 tariff to iPhone assembled in China is indirect tariff to the US
allies in the region and even to the US itself. Foxconn can move their iPhone
assembly to Vietnam but it takes time.

[http://theconversation.com/we-estimate-china-only-
makes-8-46...](http://theconversation.com/we-estimate-china-only-
makes-8-46-from-an-iphone-and-thats-why-trumps-trade-war-is-futile-99258)

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taobility
why I just ask someone to repair my iPhone screen, it would cost me $50 to
$100? should not less than $8.50 as that actually assembly the whole phone.

~~~
NullPrefix
1) Assembly and repair are completely different tasks.

2) You're paying for repair in different country with different wages.

3) Economies of scale. How many identical phones with identical problems are
you bringing in to be repaired using identical steps? One million or just one?

~~~
taobility
You provide some reasonable explanation, but that still overlooked the value
for China's manufacture provided. For the folks of supporting Made in USA, do
you think they would accept the price tag that assembly whole iPhone would
just charge less than $10?

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maz1b
Is the Economist really implying that Cook, the CEO of Apple, one of the
world's largest publicly traded corporations, has not thought about forming a
future facing outlook that is comprehensive in its strategy and planning?

A cursory glance at Apple's leadership page shows that Isabel Ge Mahe is vice
president and managing director of Greater China [1], which to me indicates
that yes, Apple definitely is thinking about China at a high level, by
formally naming an executive specifically to focus on strategy in China. This
is further indicated in their recent highlighting of Chinese-centric features
on OS products at events such as WWDC.

As far as the trade war is concerned, I think it's a little premature to
assume that it will drag on and increase in its scope and scale. Apple has
pull in D.C., and the interconnected nature of the global economy will likely
ensure that there will be a resolution to this at some point in the near
future.

[1] [https://www.apple.com/leadership/isabel-ge-
mahe/](https://www.apple.com/leadership/isabel-ge-mahe/)

~~~
albertshin
> As far as the trade war is concerned, I think it's a little premature to
> assume that it will drag on and increase in its scope and scale. Apple has
> pull in D.C., and the interconnected nature of the global economy will
> likely ensure that there will be a resolution to this at some point in the
> near future.

Alibaba just decided to IPO (again) in Hong Kong -- as opposed to offering
more shares through their existing US exchange. Given the timing of this
decision, it sounds like at least their leadership think this trade war may go
on for a while.

~~~
ksec
There is another reason for that. Alibaba has always wanted to be listed in
HK. But system in places requires all shares has equal right, you don't get
those A B C Shares in US where they have little to zero voting right. Jack Ma
said the these rules are old and US way of cooperate ownership is the way
going forward. Which leads to Alibaba went to US to be listed.

Now HK has relaxed its rules a little bit. So this is the major reason why
Alibaba is coming back to HK.

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AFascistWorld
I feel the worker expertise is overblown by Cook to justify his business
decisions, Samsung basically doesn't produce any cellphone in China now, do
Samsung phones require little expertise to make?

Since Apple production employs cities of people, and the unempolment rates in
China likely are at alarming levels, to further lock in Apple and Foxconn
should be the reasonable move for Chinese govs, while angling for more
cooperation from Apple.

~~~
nabla9
Samsung's market share in China is below 1 percent.

Maintaining market share and the brand in massive Chinese markets is important
for the long term. Just 5-10 percent can be good enough for a luxury brand
like Apple.

Apple might be willing to eat the cost of tariffs if it helps them to avoid
political backlash that can shut them out from the markets completely. Keeping
China as the part of the value chain may be condition for the market access.

~~~
Shivetya
to be honest why as consumers do we not object to Apple pursuing China profits
from both sales and manufacture when China's human right abuses keep coming
right and left and their never ending threat toward Taiwan?

Apple touts their stance on human rights at every opportunity in the West but
looks away in the East and this hypocrisy is something they need to be called
to the carpet on. They need to move manufacturing out of China as the rest of
world should until China ends the threat towards Taiwan and end the
persecution of Hindu and Muslim citizens, if not others.

~~~
selimthegrim
Which Hindus is China persecuting?

~~~
belltaco
He probably meant Buddhists.

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rado
I guess the answer is no? Can’t tell outside the paywall.

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donarb
Here's a link using outline.com

[https://outline.com/ajm9j7](https://outline.com/ajm9j7)

