Recently, Apple CEO Tim Cook's seven-day trip to China has attracted the attention of many netizens. He not only clocked in Sanlitun, Wangfujing and other places, but also donated 50 million yuan to the China Development Research Foundation, and the Lao Ku, which frequently showed goodwill, showed "cooperation sincerity", making people feel that Apple is inseparable from China and still attaches importance to the domestic market.
In any case, Cook's visit to China does show a bit of sincerity. However, not long after Cook returned, lawmakers from both parties in the United States organized a group to meet him.
According to foreign media Axios, just after Cook returned from his trip to China, a group of US lawmakers from both parties will visit Hollywood and Silicon Valley for three days, and lawmakers will meet Apple CEO Cook. As for what to talk about, there is no specific report, but I can guess a little.
This scene has long been a lesson from the past, Apple considered purchasing Yangtze River storage NAND chips last year, which was opposed by US lawmakers of both parties. In desperation, Apple responded that it is evaluating the purchase of NAND chips from Changjiang Storage, and does not consider using Changjiang Storage's chips in mobile phones outside the Chinese market.
Therefore, for the lawmakers to meet Cook, an important part of the conversation may be to "accelerate the relocation of Apple."
Does it mean that Apple can't stay?
Apple has called on domestic suppliers to expand into markets outside the country and increase their own production lines to increase overseas capacity, such as Vietnam and India. The key is that Apple has already moved production capacity, and in June last year, Apple moved part of its iPad production line to Vietnam, aiming to improve the resilience of the supply chain.
In addition, Apple's pace of transferring some of its production capacity is still moving forward, and recently, Apple negotiated with Pegatron to open a second foundry in the southern city of Chennai, Tamilnadu province, India, mainly responsible for assembling the latest iPhone. When completed, the plant will further expand iPhone production capacity in India.
In fact, Apple wants to boost production at its Indian factory, which accounts for 25 percent of its total production. Under Apple's strong promotion, iPhone India manufacturing has achieved certain results, according to statistics, in 2022, India-made iPhone shipments increased by 65% year-on-year, and the output value of Indian factories increased by 162%.
To expand its presence in India, Apple has also opened its first official retail store in India, which will open later in April. Apple also plans to open a second retail store in New Delhi. This approach is not mainly to sell iPhones, but to lay the market foundation for capacity migration.
After all, 80% of Apple's production and assembly lines are located in China, and the supply chain is too concentrated is what Apple does not want to see, so it is inevitable that it will make changes.
Of course, this is not the only reason, nor is it the most important. Because, compared with India and Vietnam, the domestic business environment, manufacturing capacity and labor costs are in line with expectations and are very cost-effective. For example, the production efficiency of the Indian factory is only 40% of ours, and the yield rate is far less than ours.
Apple's first store in India
From this point of view, Apple does not need to be iron-hearted to migrate production capacity, after all, Cook also said: Apple and China grow together and enjoy the symbiotic relationship with China.
From this point of view, Apple's withdrawal is more due to the policy of the old United States, in fact, Apple's situation is also very embarrassing.
Facts have also proved that production in China is much stronger than India and Vietnam, but the helpless thing is that the US authorities just don't want Apple to rely too much on us. Therefore, there will be cards everywhere, and whenever there is a wind, it will actively interfere with Apple's decision-making, and the migration of the industrial chain is also an inevitable move.
Of course, Apple is an American company after all, and naturally will not consider it from our point of view. Whether it is from a subjective reason or an objective reason, Apple's migration of production capacity is an inevitable thing. Apple can't stay, what we need to do is multi-field, multi-directional layout, so as to get rid of "apple dependence".
What is your opinion on this?