WSJ: It is not possible for Apple to manufacture outside China

Posted on Wednesday, March 04 2020 @ 13:52 CET by Thomas De Maesschalck
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A new report from the Wall Street Journal argues that it's not possible for Apple to leave China. Besides the cheap labor costs, the supply chain and the high degree of flexibility that comes with it is one of the main reasons why so many products are produced in China these days.

The article highlights several reasons why it's not possible to manufacture consumer electronics elsewhere. Moving significant production to Vietnam for example is not possible because of a lack of migrant workers, and India lacks the necessary infrastructure:
Speaking with experts such as researchers and former Foxconn executives, the article argues what others have previously argued: it's simply not possible for Apple to make the change frustrated investors and employees want it to make. For one example why, the article says:

The population in China has allowed suppliers to build factories with a capacity for more than 250,000 people. The number of migrant workers in China, who do much of Apple's production, exceed Vietnam's total population of 100 million. India is the closest comparison, but its roads, ports, and infrastructure lag far behind those in China.
Via: ARS Technica

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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