Inside Apple’s and Samsung’s Supply Chain Shift Away From China | WSJ
ฝัง
- เผยแพร่เมื่อ 14 พ.ค. 2024
- China has long been the manufacturing hub for tech giants like Apple and Samsung. But now, a range of geopolitical factors are pushing technology companies to spend billions to relocate their operations to places like India, Vietnam and Latin America.
WSJ takes an inside look at the strategies behind Apple and Samsung’s manufacturing moves from China amid shifting global supply chains.
0:00 Tech companies diversifying operations
0:38 Why Apple and Samsung are moving
3:08 Vietnam and India strategies
5:36 Supply-chain shifts
News Explainers
Some days the high-speed news cycle can bring more questions than answers. WSJ’s news explainers break down the day's biggest stories into bite-size pieces to help you make sense of the news.
#Apple #Samsung #WSJ
This is likely the start of how global manufacturing works. That is, in about 20 years, when India and Vietnam no longer have very cheap labor and no longer have a need for large scale manufacturing, these companies are going to find other countries. Then, more countries, And on and on.
Depends on what is made. Labor is a big component of things like clothing. When you make computer chips or machinery, its actually the price of equipment, technicians, and electricity that matter a lot more. Look at a car factory today, a newer one--many robots, few workers. To prove my theory, find the lowest cost country in terms of dollars per hour--how many chips, computers, cars, steel are they making? China's advantage was never only in cheap labor--it was cheap labor, cheap electricity, and tons of infrastructure investment--airports, ports, railways, highways, and quick import/export.
Vietnam will never get trade war with USA, manufacturing long time in Vietnam is smart 😊
China is still numbe one because of well oiled supply chain and high skilled workers, cheap labour is no more a big factor
@@nguyenquang3194Vietnam is also a communist country, which the USA doesn't like. So never know what could happen in the future.
It's all just a tax and labour costs...
It’s good to diversify productivity stations. I think it’s a forward thinking mentality. Hopefully prices can still remain cheap and inflation is not a major problem.
It might not be cheap iPhone anymore, since ship outside of China a single screw might cause $1 instead of $.001 within China. Just a example, there is no country is big as China can has everything/supply chains that cover everything. So the shipping cost will go up add to the material costs. iPhone will sell more expensive over time. Time will tell my hypothesis
Prices in manufacturing will remain cheap, resell only companies knows.
Yessir, let the iPhone be cheaper and let the labor die of hunger from cheap and unequal pay from a trillion dollar company, YAY gotta have the iPhone at all cost
Who cares, when does manufacturing come back to USA? Why would I now want it to go to Vietnam or India?
@@jie1379 I have been paying more for ‘not made in China’ for years. Means I can sleep easy knowing I don’t support slavery, organ harvesting, Communism in general.
There's no mention in this video about another major reason why foreign companies getting out of china, namely it's increasingly militarily aggressive buildup and tone, talk of war with America and invading Taiwan. Who'd have thought that harassing and threatening your business partners would result with them leaving to do business elsewhere? Duh ...
Retiring in 20 years? Due to inflation, you may need upwards of $2.6 million to maintain your existing lifestyle, with the ongoing effects of high inflation, lower forecasted stock market returns, and stagnant wages, achieving a secure early retirement could be more challenging than ever before
An obvious way to invest for a recession is to buy shares in businesses that are likely to experience steady demand even in a downturn. Typically, those are consumer staples, utilities, and healthcare companies, but off course such decisions cannot be made by an average Joe, a financial advisor is important in making this decisions
@@LeonardoScott Such considerations can certainly have a role when I think about whether I ought to buy into a share. But I never purchase purely on that basis, i always have to seek the adv!ce of my financial-planner who has helped me gain $985k in a well-diversified portfoIio that has experienced exponential growth
@@KangMinsu122 Personally I work with Viviana Marisa Coelho a registered Investment advisr. Quite renowned, search her name to get in touch
2.6 million is a ludricous amount of money from my PoV.
Two main reasons, 1) their cheap labor is no more 2) everyone expected a globalized China to be more transparent and liberal but the exact opposite is happening
Well summarized
Yep President Bush said a richer China would be altruistic. He was wrong
@@again5162 It is more altruistic. China actually does help alot. It is just not reported by western media... and debt trap? Loans from China come at 2-3% interest rate.. western loans come at 12-25% interest rate. Want to beat China.. offer a better deal.
@@nickl5658 Yes, China is honestly the most competitive and that's why countries choose China. Debt Trap diplomacy is fake, it's just propaganda on West's side.
SIR MY INDIA IS THE REAL SUPERPOWER 🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN CHINA PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳
The iMac I bought last week says it was made in Thailand. Was surprised to see that.
why they have more factories. i have a razer mouse thats made in China. but the exact same mouse is also made in Vietnam. nothing surprising about any of this
Assembled maybe. The design was done by the company.
The US is trying to block China from any advanced chips.
Likely to last longer !
@@Rusty_Gold85 and here we have a nother sinophobe. 90% of your stuff in your house or that you buy is made in china. you buy it because you think its good quality right? so stop crying about china.
Due to the strong demand to Chinese local brands, almost nobody buying Samsung in China, sales volume of Samsung phones is really low, there's no reason for it to stay in China.
also because there are much more affordable options.... fashion is expensive.
If govt bans the product its doom for apple 😂😂😂😂
which are why copied models after internal workings plans and software is copied and created . Even the stores look like Apple stores
중국인들은 애플은 구매하지만 삼성은 절대 구매하지 않는다. 중국인들은 테슬라는 구매하지만 현대,기아자동차는 절대 구매하지 않는다. 그들은 미국과 싸우는척을 하지만 전세계에서 잘 팔리고있는 한국의 제품들은 최대한으로 절대 구매하지 않는다. 😅 😂 😊
아주 역겨운 이중성을 가진 민족이다. This is fact.
Great reporting and just the beginning.
Samsung is the largest investors in Vietnam.
Vietnam politics is stable and reliable compare to China.
Many young Vietnamese are learning Koreans and Japanese because they see a stronger business relationship in the future.
still a communist country.. btw with the surge of manufacturing in vietnam, they had to borrow electricity from china
Also, Vietnam is an attractive country for Korea because Korea and Vietnam are culturally close.
@@AhKaSoom😂😂Is Vietnam culturally close to South Korea? 😂 Are they all unable to understand the history of their own country?
stable？reliable？ really？😮
great job dragging out a headline into a full blown 6 minute, while sounding serious. BSing those essays in college was spot-on preparation for this job.
Boohoo 6 minutes 😢😢 my attention span can’t handle 6 minutes 😢😢😢😢
Although India and Vietnam have their own set of issues internally, they are very neutral countries.
India has a very, very protectionist regime in place and it has the habit of harassing foreign companies when they run afoul of Indian sensitivities. They usually harass those companies (examples being Nokia, Xiaomi, OPPO all of which with substantial investments there) with tax probes or FX repatriation matters. That's besides terrible red tape plus lousy logistics and efficiency. Vietnam is somewhat better due in part of its proximity to supply chains in Guangdong, China where many of the original factories were based to start with.
Neutral?
@Omy Haby indeed neutral .
@@omyhaby1912 Yes he said neutral.
Yes, neutral in terms of _they are not enemies._
For over a decade, China has been at war with the USA (and much of the rest of the world) in every way except militarily.
That is a smart move, since the trade war, people in China are starting to support their local brands, both Samsung and Apple has been losing their market share in China, so it is reasonable for these 2 companies to move production else where and just focus selling their products on western markets.
🤡🤡 apple phones still represented almost 23% of the market share in China
I once saw a survey on Chinese consumer preferences. Its shows that other than electronics, Chinese prefer western brands, especially vehicles and clothing.
@@sengwesetogile6054 German cars are very popular in the Chinese market, but in recent years, Chinese brands have caught up. A significant portion of the best-selling cars in the Chinese market this year are from domestic brands, with the BYD Qin Plus being the sales champion.
@@sengwesetogile6054 that statement could be true years ago but not anymore
samsung only assembles in india . not manufacture
Great news for India
This is a very good video. It shows why companies must diversify in order to survive, while not pulling out . Its not really human rights but governments policies, high taxes and labor shortages are just a few reasons why companies must source from many other places and find the possible route to lower costs and earn a profit. Samsung and Apple made some smart choices
It’s never about human rights. It’s always about government stability and how they can ensure there will be no strikes every 2 months. Very difficult to see this in India. Nam, maybe more possible.
这是骗傻子的，三星从中国已经撤退十年了。前两年完成最后的搬离，三星是被抵制才搬离的。
>>Samsung and Apple made some smart choices
@@suryaprasanth9105 If you mean Modi always and do everything he says, then yes, the Indian government is stable. Modi is simply playing the same game Xi in China is doing, promoting nationalism. It definitely is a big market, but possibly will be the next country to into conflicts with Western democratic principles.
Companies move from China to Vietnam facing infrastructure issue. VN can't support large scale of manufactures, frequent power outage causing many interruption, slow down production output. It is a headache for them.
This is common knowledge at this point. This video should have come out 2 years ago or more.
I hope they are also developing recycling capabilities at these locations. If not, that should be a priority and would provide additional diversification.
Tech recycling is already centered in Indonesia and Malaysia, so this is already built-in to some extent.
"and would provide additional diversification."
That's adding cost, not diversification.
@@wisenber not if they can use the recycled materials, that’s generating their own supply chain. Also could sell recycled materials…
@@RealMattHaney They don't make that, as it's much lower margin.
Lowering your profit margin isn't the sort of diversification anyone wants to invest in.
India is the second worst polluter in the world. So we should work on that.
Good.
Vietnam welcome you ❤
in the factories you go, nguyen
Brand, chip market competition is changing the supply chain game as well...
" thats a very good & very wise move "!
As an Indian I fully support deepening cooperation b/w India and America. 🇮🇳♥️🇺🇲
The best way to secure component is having facilities closer to home. Economically speaking, this isn't the best deal for those larges companies.
China is and will remain one of the biggest manufacturer for Apple and Samsung, even though they chose to move their facilities from China, needed components are still manufactured there.
Moreover, logistic wise China has a big advantage if you compare to India or Vietnam, China has airports, seaports, roads. It is very convinient to order from China and Chinese workers are very used to ship goods across the world.
India and Vietnam need to catch up on this level. Sourcing from these countries will be another level (I work in the supply chain area and trust me when I have to order goods from China and India, it is not the same)
It would be interesting to follow how this will grow.
I agree, supply chain is what's keeping everyone trapped in China
Also, the Taiwan company Foxcon moved there manufacturer in India. The company profits cannot leave India.
That why Apple are still hesitate opening the manufacturing in India. 😂
My Samsung robot mop is made in Korea
The biggest problem with manufacturing in China is corruption although almost no one is discussing that.
India is addressing the connectivity issue . It will be a thing of past in a matter of three to 5 years
Interesting
GOOD.
The world needs to wake up.
When they were told to bring their manufacturing to America they said it was impossible because of "highly specialized and delicate supply chains in China". Why can they easily relocate to other Asian nations then....?
ASK TESLA.
because war in Ukraine or COVID. pick one 😂
@@BLITZKRIEG1 excuse me, what?!
It's called supply CHAIN. And they are only one dot in this chain.
@Terryzn then whats the issue with making the iPhone in the USA? (I know the answer, just curious what you think)
Apple and Samsung’s bigger problem is not operation in China, but the competition from Chinese phones. They too will move to India and Vietnam to compete.
They already existed and dominated Indian market for almost a decade, but Geopolitics has meant their share is going down steadily.
xiaomi and vivo has been in India for many years and they even have local factories there
Samsung's problem is not Chinese competition, but China's protectionism. Samsung (global smartphone #1), Hyundai (global auto #3), LG Chem (EV battery, outside China, #1) and many other South Korean companies were forced out by the CCP to make room for domestic counterparts. It's China's plan to forced out all foreign companies ultimately, and replace them with their own. Nobody is under illusion that China is all about fairness, competition, or innovation.
China is home to world's most complete supply chain and largest consumer market. Moving manufacturing facilities out of China would be suicidal for any company who wants to suvive competition
this is a must
I watch WSJ everyday, when getting up, resting mid day, doing housework, sleeping. ❤🎉.
Samsung was out competed by Huawei. For similar Android phones, the Chinese would choose Huawei Android smartphones over Samsung.
Thnx for showing correct map of my country.
it took TEN years for Samsung to completely moved its production from China to Viet-Nam.
One major problem with outsourcing is security. Imagine what would happen if war broke out between America and China and most of America’s industry is in China.
So basically American manufacturers need to exit China fast because they will tank this global economy down to the ground. Mexico Latin America Africa would be a better solution
Then ask yourself why are the WSJ describing China as the number one enemy?
Those go first! Remember the U.S. pull out in Afghanistan... EVERYONE says it was bad, they left equipment blah blah blah. Meanwhile, in reality, THE TALIBAN HAS NOTHING, and no one even speaks on it, lol.
That imaginary war will never happen, there would be no gain no matter which side wins.
@@xiawilly8902 People said that before WW1 started.
Funny thing is that a lot of the factory in Vietnam are owned by the Chinese. Its their strategy for the trade war that's taking place right now. WSJ got to do a better job for getting the truth to the public. Any manufacturer in South East Asia will understand what I'm saying. 😉
Exactly, many companies in Southeast Asia are interlinked via ASEAN. Going to these countries for 10% income tax is simply playing into Chinese hands.
The video should have also mentioned that India has been increasing tariffs on cellphone and electronics imports, thereby encouraging companies to set up local production to keep and grow that market.
@@poppinc8145 they took deliberate regulations to fine china brands as well. very unfair, not a good move
@Sed yes we Indians did that and we are happy that our govt did it
@@sss2005sunil1 smear the normal technology licensing fees that manufacturers give to Qualcomm as foreign exchange outflows ??? stupid or malicious？
Good Thinking
Hopefully Samsung and Apple would consider Malaysia as the best destination for their semiconductor manufacturing. Malaysia has a lot of expertise in the industry with the industry already been in the country for over 50 years
I have been to Malaysia. It was a great nation to travel & stay for a period of time, but not a nation to produce goods in. People are laidback there, just compare Malaysian & Singaporean, Malaysian be like taking holidays every day.
@@karlk7070 to be honest I think that is too over generalized. If Malaysia is incompetent and too laidback, there will be no industry that could survive there. Furthermore, one of the Malaysian major exports is electronics and recently there are a lot of existing MNCs in Malaysia increasing their investment into the country expanding their plants, operation and services. Moreover, to compare with Singapore, haven't you realised that, there are 350,000 Malaysians who are willing to cross the border to Singapore daily just to support their family. How is that supposed to be laid-back?
@@Q-oy4dw yeah you are right, mostly cuz I stayed not for long as a traveller. I mean, the government officers gave me bad impressions of them being laid back, but I definitely shouldn't comment it as the characteristics of Malaysian people... Sorry for my wrong comment. After all, Malaysians are pretty happy and the living standard is good for its economy, which made me believe in it being a travel hub. For manufacturing, idk but it's a country with potentials.
They'll go where ever people are so desperate that they will work for almost nothing = bigger profits. China has moved beyond that and are trying to improve things for their wo
Market size is one of the key factor
Why not move manufacturing back to the USA ! Print the US dollar and keep it too and for the first time after a CENTURY you get to have a reliable MADE IN AMERICA product via robots and AI, that way Americans get free money on behalf of USA Machines Corp..
One phone would cost 3k 😂😂😂
@@sov19871987 more like 10k if not 30k
No one want to get sued when something went wrong
The labor in the U.S. is expensive and plus America one iPhone will go for at least 2K or 3K.
Not very smart are ya
Feel bad for the people who were mistreated by Apple and Samsung
*Watching this on my amazing HUAWEI P50 Pro.*
Great move to manufacture in Vietnam
Better in India, China uses Vietnam as proxy nation.
I said this in 2014-2015 in supply chain class when they were teaching us to go sole source for economy of scale. I was like shouldn’t you have competition and risk mitigation? But my teacher just said you save money going sole source. Well here we are. Sole source in climate chain and political instability is not smart. I specifically said to move to India because they respect intellectual property. Although China is having conflict with India on the boarder who knows what will happen in the next decade. They are just chasing low labor costs ie Vietnam. I guess the building costs are low enough that just moving every 10-20 years chasing low labor the math adds up. Pretty soon climate change is going to disrupt a lot of shipping. Shipping won’t be as cheap.
Bing chilling moment.
My samsung S22 ULTRA was made in Korea, this video Is so interesting
Japanese co. also moving out and given huge incentives in doing so.
Samsung trying to make cpus pfffft. We all know how that turned out. Look at overheating Snapdragon and rtx 3000.
@@fynkozari9271 🙃
While India's contribution has increased it still falls really short in terms of manufacturing the important components such as chips and that is a problem that these companies and the Indian govt need to address in order to exploit the cheap Indian labor market. 6:32
foxconn is making two very big components manufacturing plants in india. in next 3-5 years, we can reach level of china in terms of value addition. vietnam lags in value addition. they are just focusing on assembling.
Report the channel and video for propagating the Chinese version of Indian map
respect
Except the OEMs moving to Vietnam are Chinese companies now using local labour to reduce cost...
I wonder when Africa will be the manufacturing hub of the world. In the 2050's? The 2070's?
Even with automation probably eventually negating geographic differences, Africa seems like a potential huge focal point for future manufacturing industries.
Can't imagine that African countries do not come up during these meetings when deciding, I just wish the countries had leaders that are serious about it's potential and worked towards progress and growth.
Africa is like 54 different countries with different currencies, laws etc. It's the exact opposite of what you get with a huge country like India & China.
As you say, automation may mean manufacturing is brought back to the West. Double or trebling productivity with AI and robotics will outweigh any gains made by cheaper employees.
Too unstable and too much corruption. Well, I'm not saying all of African countries but majority and even if there is no domestic instability in some, just having an unstable neighboring country is a turn off.
Not happening atleast before 100 yrs.
End of the day it’s about more profits and cheaper labor 😅
it's interesting that there's no mention of the OEM/ODM companies that are the actual manufacturers for these companies, and that they also manufacturer for companies like Sony, LG, Asus, MSI, Lenovo, Philips, HP, etc...
Apple has strict control over its vendors. The actual manufacturers can be easily replaced if need be. Apple already incorporated 2 new local vendors to do assembly in india recently.
4:12 - wow why did they build it so wavy? 😭
It is interesting to think why it took them so long to realize that they should have their manufacturing facilities in different locations.
because as long as everything goes fine it is cheaper not to diversify production. And businesses/managements are rewarded for short term success.
Nice try. When they try new locations, to the manufacturer horror things are worst than in China. Vietnam and India does not stand out due to political interference, poor logistic and poor worker training methods and lousy downstream sources.
Maintaining supply chain in multiple locations will trememdously increase cost of production, leaving room for competitors.
What you didn’t share was Samsung losing market share in China
because China wasnt even a significant market for Samsung. Samsung still holds the largest market share in the world and recently, has taken a huge share of the market share in Japan for the first time in 15 years. While Samsung lost market share there, it still holds the largest market shares in most countries globally
My company is selling cosmetics lamer, bobbi blown, estee ect..., net sell from China biger than net sell from global 3 time 😅. We cannot leave China
@@dachochiyo3992 yep after seeing your other comments i can tell your not a troll and definitely not lying👍🙂 lol
SIR MY INDIA IS THE REAL SUPERPOWER 🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN CHINA PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳
1:26
What do i need to learn so that i can be able to make stuff like this
Just 15 years later? Come on, that's a long time in the tech world.
Greatness doesn't happen overnight.
Labour costs are also going up rapidly in China. Most facilities in Vietnam are actually owned by Chinese companies. Future manufacturing cheap goods will all be made in south east Asia for cheaper labour
Southeast Asian countries have all suffered a history of colonial invasion. Although some Southeast Asian countries have conflicts with China, when Western colonialism deployed military forces to East Asia, they knew very well that the only option left was China (Russia) The strength is far inferior to that of China), and no Southeast Asian country is willing to let Western colonists dominate its own national destiny and future.
>>Most facilities in Vietnam are actually owned by Chinese companies.
India's map is not correct... Please take action...
Yes Pok and aksai chin are also parts of India
The map is correct punk
@@SanjivKumar-cw3oq Report the channel and video .
Also how much % of NAND capacity of Samsung is in China
Decoupling is happening by default , slowly but surely. And it may be for the better for both sides🤔
MORE COMPANIES ARE GOING TO LEAVE CHINA
surely, those who can't compete in chinese market will leave. those who succeed will stay to enjoy their profit.
AND WHEN WILL IT COME BACK TO USA? I DON'T CARE NOR DO I WANT IT TO GO TO VIETNAM OR INDIA.
no american company will leave china. China is too big of a market for them. if all western companies will leave china the western world will collapse fast. really really fast. learn about things first before you make a stupid comment like this.
@@leethal59 if they would make their products in the US you will pay at least 3 times as much for an iPhone. you dont want that now do you
New companies entering china will be more than leaving china.
India is on the path to more per capital income and prosperity. Apple's brand prestige can serve it lot in india
samsung only assembles in india . not manufacture . apple production is producing very low qualifty products in india .
@@Q_QQ_Qmy s23 ultra was made in india (samsung has its display plant in noida). So not just assembly. Only chips come from taiwan and korea (same was in china, it was assembling only)
@@Q_QQ_Q😂 its only chips now ! Samsung build world's largest Mobile factory in India ! From display to battery now all made in India! Exception only chips which will soon coming to India !
i did not expect WSJ to be correct but just FYI ... wrong map of india
Looks like top VPs have seen the movie
Train to Busan...
Samsung smart phones have no market in China anymore , so they moved out all their phones factories .
Apple will maintain a big portion of their production facilities in China if they still want to sell their phones in China .
Apple will not maintain a big portion of their production in communist China. They don't have to and people will stilll buy because it is an iPhone
in 2015, South Korea was forced by USA to setup American air defence system against North Korean Nuke Missiles.
China didn't like that, and retaliated against South Korea, and started boycott against South Korean products, and companies.
That's why South Korean companies left China and moved their faciliites to other countries.
China was afraid of USA, so they could not retaliate against USA, and only able to bully South Korea. what a cowardly thing to do.
>>Samsung smart phones have no market in China anymore
They are moving all their assembly plants out which will mean they lose a lot of sales in China.
@@davidlazarus67 : except that Apple has no plan or desire to move -- 85% of more of their manufacturing will remain in China for at least next 10 years.
As a consumer, I hate purchasing products from China. I would definitely prefer to buy products from Viet Nam, India, and many other countries.
What’s the difference between Vietnam and China or even India
Or has the media not yet brainwashed you about the other two 😄
is vietnam a western liberal democracy lol?
Vietnamese workforce is not reliable. They only very good in tailoring. That's all
Then you should stop buying electronics in general. After all, at least one component will be made in China.
@@levelaznIndia, l doubt this guy even heard of the Manipur incident to have the liking for India.
This is quite normal as i read this new before when they moved their US and korea factory to China. After 10 years i will read them moved their factory again out of south east asia to africa or other country.
Oh😮
Not just Apple and Samsung, other International Brand names are moving out of PRChina, to avoid Sanctions and Higher Tariffs. But there are many still International Companies have decided to stay in China and even increased investments into PRCHINA, esp. those involved in Chemicals Manufacturing and Chemicals Processing, as many such industrial products manufacturing would find it difficult to be re-located & be accepted elsewhere nor even back to their own countries of Origins, as manufacturing such products, due to their potential risks of pollution and environment degradation issues can no longer be tolerated, except in PRChina.
That's true. Nobody is stopping companies making dirty chemical or minerals from leaving China b/c China is one of the few countries that do not care about their environmental or workers' health/rights.
I have stopped purchase of any Korean products in my household. One after another failed or stopped functioning long before similar products of Japanese makes would last. At this rate, I will even use Chinese makes as they will at least last as long but are cheaper.
Smart move
SUPER 😊👍
WSJ giving a part of India to china and Pak as saying sorry ig... (Indian map is incorrect!)
Isn't this the strategy of the United States? Apple and Samsung are both forced to do so.
WSJ didn’t say is Samsung’s China market share disappeared
WSJ only america propaganda😂😂
Do you want WSJ to say that the Chinese gov't's forced out foreign business as part of Xie's state industry policy starting 2013? Samsung, along with Hyundai and LG Chem, were forced out of China as part of Xie's state industrial policy to protect and nurture domestic competitors. Samsung's 20% Chinese market share in 2013 dropped to 1% while they maintained #1 global top smartphone seller; Hyundai also had 10% of the Chinese auto maker in 2013; now down to 1%, but now they are top #3 global automaker. LG Chem also had 50% of the Chinese EV battery market in 2014, but was forced out by highy discriminatory and anticompetitive illegal subsidy, forced IP transfer and other practices by the Chinese gov't to exclude them from the Chinese market. LG is likewise the largest battery maker outside China. All South Koreans businesses are hyper competitive leaders in their respective field -- China can't hold a candle without the Chinese gov't protecting their market from them.
Best out of it.
Past: Apple was known as the innovator.
Present: Apple is now known as playing copycat.
There are no innovators in cellphones.
Anticipate a future where mobile device prices are expected to soar twofold, while our earnings, impacted by inflation, will command only half of their current buying power. Despite these economic shifts, it's unlikely that corporations will compromise on their profit margins. This could potentially lead to a decline in sales for major players like Apple and Samsung.
That's why they are pivoting into AR/VR. Their cash cow is in the intangible products and APP store.
Did you miss the part where they said that manufacturing was cheaper in other Southeast Asian countries like Vietnam? And that labor costs had soared in China? These are business decisions, not just geopolitics. If Vietnam can manufacture phones more efficiently than China, then companies will move to Vietnam. Simple as that.
More likely they will drop in half ... just like TVs or computers.
3:57 20%
Nice
What the WSJ is not telling you is that labour is no longer cheap in China so semiconductor manufacturers have moved to cheaper countries like India. China is transitioning to a middle class domestic economy so they don't need to export as much.
1:14
You partly true ,but there’s a bunch of people poor af in China rural areas, some just earn $10 per day, I know it’s crazy but it’s true
Chipmakers build more fabs in US, Korea, Japan and Taiwan. Not in India
China is becoming incredibly hostile to the west. That is the absolute biggest reason because having a presence in China gives them access to the largest market.
@@kenyup7936 there is more than 50% population in India who don't earn 10$ every day
Vietnam , Thailand , Indonesia , India , Mexico , Czech Republic , Poland & certain Africa nations are much safer , reliable , IP respected & smoother supply chain manufacturer bases to be consider! 🌏
Location is also a very importen factor here, since India - contrary to the other possible locations like Taiwan, Vietnam, Indonesia and Philippines - since they are all located inside 'the eye of the storm'(Conflicted area, in the 'Chinese sea') and they could all be hit by consequences(due to their close location to China), from a coming conflict(China vs. Taiwan/Western World) in near future.
TL;Dr : yes they moved some out. but 80 percent of the supply still remains in China so yea~
This is not new. Nokia had manufacturing in India, Vietnam and other countries. Samsung took advantage of early developments kicked by Nokia. A tale long before 2011
The Indian map is wrong . Please use the correct one which includes Kashmir .
Report the channel and video
I'd like to think these companies were moving out of China due to well-considered ethical reasons, such as human rights concerns. Obviously, it's only naked self-interest and they're doomed to make the same mistakes again and again.
Yep, companies should all moved to America: The most ethical country in the world😂
@@fuleinist 😂😂😂😂😂😂😂
@@fuleinist lol, at least the Americans have ethics.
@@bakuninRogers ethics: kidnapping Huawei's owner's daughter, invade iraq based on fabricated facts, blockade cuba for 6 decades and counting because they have different country system, building military base in oil rich areas in middle east so they can safely loot the oil. and countless more.
@@fuleinist 😂
Now the Chinese labour cost is very expensive and the policy is not friendly for foreigners. Better cooperate with diverse developing countries.
i believe Samsung not only has factory in CHina, India, Vietnam, but also Indonesia, Brazil and their hometown South Korea
Fast forward to 2050: Apple and Samsung moving to Nigeria because of Indian government's stance against USA.
Maybe 2035
lol,true
Timbaktu
Apple for sure can build massive factories in India but to capture market shares from other manufacturers especially Samsung is impossible for them at the moment or in the future if we looked at Apple devices prices. Unless if in the future Apple start to release budget Apple devices,maybe then they can capture more than half market share.But for now,impossible😂
What is the top cell phone market share in the world? Perhaps look up this statistic before commenting. Samsung and Apple are both at the top, despite selling expensive phones.
True, I very much doubt Apple could take a foothold in the Indian market given that they didn’t really have first-mover advantage like they did in the US. Their current market share in India is abysmal to say the least.
Apple only needs to capture the premium smartphone division which they already lead in India.
They're not interested in competing in the budget category.
@@stevens1041 The majority of samsung phones are mid range and low end devices. Samsung even has a special product line of mid range phones sold in China. Not only that, but the only samsung phones in the top 10 best selling 2022 smartphones in the world were midrange devices. Perhaps look up this statictic before commenting.
having iphones is a requirement to land a date in every country now. because pretty girls only use iphones, and they don't talk to guys whose text bubble is green (android). if you want to date a girl in India, you need an iPhone too. it's not an option
Political stability needed for econok8c growth
India’s cellphone market is for $199 and I think Tim Cook is just shifting the focus a bit. Moving 3% of manufacturing out of China to India is helping the politician fulfilling the promise to derisk. Right save 3% risk from made in China 🎉
By 2025, Apple is expected to raise its production to 25% of the global iPhone share in India.
As of now, it stands at 7%.
It's already 7% at the end of 2022, and will go to 25% by 2025.
You are delusional
@@ignashi7plays401 7% in India so roughly 93% in China. 2025 huh? Guess many things will change by then. Huawei is sure to come back and completely face to face with apple 🍏
@@unclesam8565 It's 85% in China.
Who knows what's gonna happen till 2025, may be Huawei can go bankrupt by then.
I love my Samsung products…sadly tho imo with each new update Samsung doesn’t seem to be as great as they were years ago
samsung is becoming more and more apple everyday. they saw those dollar signs and went blind
Why were you a Samsung fan all this time as opposed to apple if I may ask?
A friend of mine working in samsung disclosed that samsung knowingly pushes updates to slow down the phone as well as increase battery consumption using bloatwares in order to sell newer models.
They want everyone to upgrade or atleast change the phone every couple of years specially in budget section smartphones. This business strategy is used by all the leading android smartphone manufacturers except with the phone having android one which is android in it's pure form. All the UI integrated with android such as MIUI, OneUI , ColorOS etc are used specifically for this purpose only.
@@asianstud7 because Samsung is better than Apple very simple lol
@Rohit Kumar you're mistaken that's apple not samsung
Good
There were quality issues with Iphone manufactured inVietnam.
*Love how WSJ shows Taiwan as part of China in the Thumbnail must be getting very well paid by their Chinese Masters*
PS :- Editing this comment *SPOILERS* You are late they already changed the thumbnail now it only shows Hong Kong 😂
Technically speaking Taiwan is part of China. But I don't think any western news outlet intentionally show Taiwan as part of China. It's by mistake I guess
you should ask your Indian government since your own country india recognize Taiwan as part of china.
@@kypronite even USA doesn't recognise Taiwan
The thumbnail doesn't include Taiwan in China's highlight??
Brother I hope you check the thumbnail again and go on google to verify your knowledge of where taiwan is
Samsung still produces a lot of chips in China and they can’t bring in the most advanced EUV equipment from ASML in the country. As long as the US’s chip sanctions against China continue, they have no choice but to move their fabs out of there. This will probably lead to a decline in sales to China as well, one of their largest markets for chips. Lower end memory chips which do not require the most advanced technology nodes would be made by local Chinese companies.
>>they can’t bring in the most advanced EUV equipment from ASML in the country. ...> This will probably lead to a decline in sales to China as well, ...> Lower end memory chips which do not require the most advanced technology nodes would be made by local Chinese companies.
Samsung has an one year exemption+extension that allows them bring equipment into China
Why this background music? People with hearing impairment are not able to hear the dialogue.
They don't even say China's side of the production. Although Samsung had a 70% decrease in employees, 50% of production is still in China, sounds like an increase in efficiency as well with some politics that decided this. A 25% increase of suppliers for Vietnam looks cute on paper but China is listed as more than 152 of those suppliers of 200, that's a decrease in China's eyes of 3% in 4 years, and while those 4 years there were shutdowns. In reality though, all the infrastructure must be complexly put together in 1 area to work efficiently and smoothly, it will take them decades and decades to build that infrastructure in other locations while the market for those countries do not support that investment. And while at that, China has the infrastructure already there with the market to support it; as long as China is able to stay reliable for the next 5 years without interruptions, there will be little reason to actually go elsewhere without it continuing to cost them billions and billions of dollars to build infrastructure elsewhere. India also forces companies to produce within their country to sell in their country, hence the 2% market share there. With China investing heavily in AI, robotics, and automation; while largely leading in manufacturing infrastructure innovation, China will have quite an edge for the decades to come. While India & Vietnam are looking to increase workers and expertise (For example, 4 years of engineering + Another 4 - 10 years for mature competency inside the field), China is already working on a process to automate most of it and mass implement with the most expertise already there. India & Vietnam have quite a mountain to climb against a competitor like China.
excellent summary,
Well excellent comment but don't you think if automation takes place then these companies would produce in their own home country or some other developed countries which are also focusing on ai, robotics as much as china is focusing or may be even more.
@@AryanArora-xr4pw so which "developped" countries except the US,
can have better AI, Internet, super computers, civil drones, 5G telecom equipment, quantum computing than China?
what Musk does is to continuing investing in China, and China has just successfully tested its C919 passenger plane and send its first civilian to Space,
so if other developed or developping natins want to compete with China, they are welcomed, but if they pretend that they can replace Chija with ease, it sound like daydream,
China is the only worthy opponent of the Us in almost every high-tech fields, even the US can defeat China in a total tech war, it will take several decades and even century,
@@AryanArora-xr4pw The supply chain, infrastructure, innovation, technological advancement, competent expertise, subsidies and logistical advantages are just not comparable.
There are several major problems of manufacturing in China: the workforce is no longer cheap, China is increasing its regulation and the political situation is harsher and harsher, China's economic environment has proven to be unstable recently - its has introduced some unexpected changes, the relationship between China and the Werst is becomming more problematic wich means unsure future for business, huge portion of the Chinese workforce is going to retire soon.... All that means that staying in China is increasingly risky.
I think also the rise of the Chinese Smartphone brand at home and abroad has also played a huge role in this transition.
Brands like Oppo, Xiaomi, Huawei, Vivo, Lenovo, OnePlus and many others just got more competitive phones for a very good price which would sell really well in underdeveloped countries with a huge middle-to-lower class demographic that simply can't afford the premium price that the likes of Samsung and Apple charge for their devices.
@@avalon5536 Read what I said again.
Underdeveloped countries.
@@avalon5536 Europe had not viable smart phone brand