Cook was caught off guard, Apple s supply chain was on fire, and the road out of China was bumpy

Mondo Technology Updated on 2024-01-29

ApplesAs the most influential in the worldTechnology companiesThe success of its manufacturing industry is inseparable from China, a major manufacturing country. However, the rise of India in recent years has triggeredApplesExecutives' thoughts: Should we gradually end our "special relationship" with China and instead see India as a new manufacturing base?Especially the rise of Huawei, rightApplesThe share of the Chinese market poses a huge challenge, which prompts:ApplesThe top seeks to reduce the pairManufacturing in Chinadependence.

However, India is not a perfect alternative. First of all, although the labor cost is lower, the product quality and manufacturing of the Indian foundryEfficiencyThere is still a big gap compared with China. The pass rate is only about 50%, which is far lower than the level in China. This means:ApplesWhen transferring manufacturing, it will face the dilemma of uneven quality.

ApplesTurning to India, we hope to improve profit margins by reducing manufacturing costs and rebuild our competitiveness in the Chinese market. Although this is a beautiful idea, a recent fire at the Foxlink plant in India resulted in the destruction of nearly half of the equipmentApplesThe progress of the transfer to India has brought a major setback.

This timeFireNot only has it had a serious impact on the production capacity of Indian foundries, but it has also punctured the illusion that India is the perfect alternative. In fact, India still faces huge challenges in order to replace China, including product quality and manufacturingEfficiencyandChainstability and other issues.

AlthoughApplesExecutives are actively seeking to reduce pairsManufacturing in Chinabut found that the overall transfer is much more difficult than imagined. Outside experts point out that even ifApplesIt will take up to 8 years to successfully transfer 10% of the production capacity to other countries by deciding to withdraw from the Chinese market. This is enough to prove that China is inApplesThe manufacturing status in my mind is unshakable.

China not only has a mature manufacturing system and efficient worker quality, but also a completeChainInternet. These advantages make it:ApplesIn the course of long-term development, it is difficult to completely give up the "special relationship" with China. Although the Indian market has huge potential, it is almost impossible to achieve the status of a perfect alternative to China in a short period of time.

Overall, despite India's advantages in terms of labor costs, its product quality and manufacturingEfficiencyThere is still a certain gap compared with China. ApplesOver-relianceManufacturing in ChinaThe problem cannot be ignored, but it will take time and effort to find an alternative that can completely replace China.

In the long run, China will continue to playApplesThe role of the most important manufacturing base. Despite the transferChainThere will be certain risks, thoughApplesThere are also product quality, worker quality, and the overall need to be consideredChainstability and other issues. Therefore, it is almost impossible to break off the "special relationship" with China in the short termApplesThere is a need to be prudent and cautious in the process of shifting manufacturing.

In the context of globalization,ApplesThe layout of the manufacturing industry is also a challenging and confusing proposition. As a global manufacturing power, China has a mature production system andChainnetwork, forApplesIt provides a stable and reliable manufacturing base. But with the rise of emerging countries such as India,ApplesYou need to think about how to diversify your risk while remaining competitive and prepare for future growth.

AlthoughApplesThe top management is full of expectations for the transfer of manufacturing, hoping to improve profit margins by reducing costs, but the reality is always cruel. IndiaFireThe occurrence not only brokeApplesThe beautiful illusion of India has also made it realize that the "special relationship" with China is difficult to part. Manufacturing in ChinaThe advantages and strength of letApplesIt's hard to find a completely alternative option. So, in the next developments,ApplesIt is still necessary to be cautious about its manufacturing layout, maintain a cooperative relationship with China, and maintain a prudent and orderly attitude when transferring manufacturing.

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