Adam Kos At least in the country, on the packaging of the vast majority of Apple products you will find "Designed by Apple in California, Assembled in China," because even though everything is developed in the USA, the assembly lines go elsewhere. Although there may be several reasons, one prevails - price. And this is exactly what Apple has ended up with, at least with the production of iPhones.
When you move the production or assembly of anything to a country where labor is cheap, you obviously benefit by reducing your production costs and thereby increasing your margin, that is, how much you make. You save billions, and as long as everything works, you can rub your hands. The problem is when something goes wrong. At the same time, the assembly of the iPhone 14 Pro went wrong, it cost Apple billions of dollars, and it will cost billions more. At the same time, not enough was enough. It was enough not to have money in the first place.
Unboxing iPhone 14 Pro Max
Zero tolerance for covid
After the introduction of the iPhone 14 Pro, there was a huge interest in them, and Foxconn's Chinese lines went into overdrive. But then came the shock, because the COVID-19 claimed its word again, and the production plants were closed, iPhones were not being produced, and thus were not being sold. Apple may have calculated these losses, we can only guess. In any case, it was a lot of money that the company was losing by not being able to supply the market with its most advanced iPhones during the peak Christmas season.
Tim Cook visiting the Foxconn factory
With the cross after the funus, it can be well advised now, but everyone knew it a long time ago that China is yes, but only from here to there. Apple relied too much on it, and paid for it. In addition, he is always paying extra for it and will continue to pay extra for a long time. By not diversifying his chain early enough, it is now costing him billions and billions more that he is practically throwing down the drain.
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A promising India?
We certainly do not want to call India a county. It is rather meant that the money that is now hastily invested in the transfer of production from China to India has a different value than it could have had a few years ago. He could adjust everything gradually, slowly, with balance and, above all, quality, which he does not have now. Everyone is learning, and the Indian races cannot be expected to meet the known standards immediately. All production optimization costs not only money, but also time. Apple has the first, but doesn't want to release it, and nobody has the second.
Gallery
But what will society solve by transferring everything to one country again? Of course nothing, because unpredictable situations can also happen in India due to the fact that it is the most populous country in the world after China. Apple is also aware of this, and reportedly outsources only 40% of production from China, to a certain extent betting on Vietnam, older models of iPhones have been produced in India for a long time, as well as in Brazil, for example. But now everyone just wants news.
But Indian production lines produce a lot of scrap because they simply can't (yet) do it better. Throwing away every other piece is a little sad, but when you have to complete an iPhone production contract "at all costs," you don't deal with the amount of waste if you have a knife to your neck. But Apple learns from its mistakes, which we can also see in terms of various design decisions that it eventually backtracked on. As soon as the production of iPhones stabilizes and optimizes, the company will stand on such a solid basis that nothing will finally topple it. Of course, not only the shareholders want you, but also us, the customers.
