Timing of Apple Production Shift Out of China Is Suspicious, Loup's Munster Says



there's some confusion about what terry gua actually said here he made some remarks an assistant later clarified them mark what exactly did he say and what did he mean right so I think the context here is very important right I think this might be getting a little blown out of proportion because this is the guy who is in charge of Foxconn helps create Foxconn for many years and of course Foxconn is where apple produces pretty much all of its iPhones outside of India right now out of China and now he stepped down to run for president of Taiwan won't it benefit him greatly if Apple moved some of his production from China to Taiwan once he looked really good as president wouldn't it be a really good campaign slogan for him to say he's trying to get the iPhone to move from Foxconn to Taiwan so I think people have to understand what's going on here there's the political side for him there's a political side for Apple so he has a lot to gain by making this happen Jeanne bigger picture all of this is based on a report from the Nikkei a couple of days ago that Apple asked many of its China based suppliers and Foxconn is a Taiwanese company but manufacturers iPhones in China asked these China based suppliers to consider moving production outside of China perhaps to Southeast Asia do you think that would ever happen and what are your broader thoughts on the implications of Apple even considering this at this point I'm aware I think that that very well will happen in time and I point back to four years ago when Apple started to consider doing production with Foxconn outside actually in Brazil because of some of the tax laws the import laws in Brazil and so I think that this motivation for Apple to essentially de-risk themselves with China I think is nothing new the timing on it is suspicious and probably the truth is several layers beneath the surface about why Apple is talking about that now but I do believe that outside of all the things that are going on with trade Apple has a long-standing interest in diversifying outside of China for the manufacturing now mark without getting too deep into Taiwanese politics terry gua has pitched himself as a China first candidate this doesn't sound very china first but you know what are the sort of prodder political implications here of Apple moving considering moving its its its factories outside of China anywhere and and perhaps even to Taiwan yeah you know this could be seen a little bit as a lose-lose situation for Apple I mean you've seen the struggles that Apple's competitors such as Google and others have had in China Apple is the rare major US or non Chinese tech company to actually be mostly free to function in China most of their services work there they have dozens of retail stores across the region they've had a lot of success their revenue wise in the last you know five to seven years or so as well that can't be said for Google and others so if Apple starts stripping out parts of production from China that's gonna cost a lot of jobs apples responsible for about three and a half million supply chain jobs in China alone if those jobs start going the way it's gonna hurt the Chinese economy in China is going to have less of a will to want to work with Apple to keep them in their stature in the region right now meantime gene you've got a new note just out on Apple's reputation in China what have you found so Emily we've been monitoring this closely since really may 5th when the trade dispute with China started to flare up and then with Huawei to and what we wanted to get a sense was with what the typical Chinese consumer if they would be boycotting Apple products and try to get a read to on what the government is thinking and as we've gone back over the past month and looked at social media within China and also the broader China news media outlets the reddit of China all of those have a surprisingly supportive tone relative to Apple and the reason why I think that this is important is that the tone in the media is directed from the top it comes from the government there is no question about that and I think that there is an insight in terms of how China wants to operate and work with Apple potentially or potentially do some tariffs against them and I think if you take in this very clear view that in fact the government is putting a positive narrative out related to Apple I think that's a sign that the government wants to continue to work exactly like Mark said three and a half million supply chain jobs they don't want to disrupt that so I think that that is a positive for Apple I just want to briefly mention to is that with the typical consumer even though on social media they're speaking relatively positive or overwhelmingly positive about Apple that doesn't mean that the typical consumer feels let that way there could still be an impact of a negative I phone number in China based on some of the things that are going on in the geopolitical world

31 Comments

  1. Tom Mallard said:

    Dude, another hardcore segment on the Long March are unloading iPhones for Huawei's, anything but USA goods.

    25% tariffs have to make the world economy suck, increase violence and starvation as trillions go to wars, the most massive carbon bomb to planet earth.

    Oceans are acidifying 10-times faster than extinction events, great job, 1/4th of tailpipe emissions stay over 10,000-years in the upper stratosphere:
    "The rate of acidification is 10-times faster or more than anything we have seen for the past 50-million years and perhaps over the last 300-million years.".

    ICES ASC 2013 Plenary Lecture by Dr Richard Feely, 9:10 into 1:01:08; 14:30 in CO2 vertical maps; https://www.youtube.com/watch?v=etFob9Wy45E

    June 26, 2019
    Reply
  2. LagiNaLangAko23 said:

    Put China in video title or description and they will come.

    June 26, 2019
    Reply
  3. Stefanie Daniella said:

    nothing suspicious.
    if apple wishes to exit production in china, it makes sense to move elsewhere, where there are markets that still like apple products
    (make products where they want to sell it, where USA-based apple consumers are)

    June 26, 2019
    Reply
  4. golong son said:

    Who is buying Apple. It is an over priced junk like the product that english make

    June 26, 2019
    Reply
  5. Truth Matters said:

    You guys are completely off. The much bigger issue is that Apple loses the Chinese market, about 30% of Apple sales. China does not care if Apple assembles in Chian or now. Tiny, tiny, microscopic for the Chinese economy.

    June 26, 2019
    Reply
  6. Truth Matters said:

    Apple production in Taiwan? That is a very minor issue for people in Taiwan. You are off the scale. Who cares about Apple production in Taiwan. Brasil does not have the technology to assemble iPhone using robotics.

    June 26, 2019
    Reply
  7. long long said:

    terry gao is just a scapegoat, it is the rich white man that run his company…..

    June 26, 2019
    Reply
  8. Muhammad Firdaus Mohd Rizal said:

    #StopMacOS development

    June 26, 2019
    Reply
  9. Muhammad Firdaus Mohd Rizal said:

    Apple must move manufacturing from China to Malaysia in this year.

    June 26, 2019
    Reply
  10. Muhammad Firdaus Mohd Rizal said:

    Apple must stop producing Macintosh devices in this year.

    June 26, 2019
    Reply
  11. Pixinity said:

    Apple sucks no matter what. 3 year old technology for a premium price. Time to switch soon!

    June 26, 2019
    Reply
  12. Bryan Keith said:

    How fucking dumb are you going?

    June 26, 2019
    Reply
  13. T Bala said:

    Lots of 50 cent army left the comments.

    June 26, 2019
    Reply
  14. john Tan said:

    Good apple need to get the hell out of China. Bring the manufacturing back to the America.

    June 26, 2019
    Reply
  15. chung O said:

    That is the different between democratic and communist, see how USA attack Huawei and how China refrain from attacking apple, instead, support apple,,, is easy to say you practice democratic, action speak louder than words… USA is no democratic, they steel from their own American , they finance isis , that is the different between the two system… freedom of attack… Huawaii, Iraq, Iran ,venuzeala, Vietnam, korea, Russia on and ona and on. .. freedom of attack… freedom to finance terrorist group, before teliban , now isis. In 70, in South America, same pattern, finance terrorist there as well… omg, finally , people start to see what America truely is.

    June 26, 2019
    Reply
  16. Gilles Milaire said:

    It will be difficult for Apple suppliers to leave China, in many cases it will simply be impossible. Apples products no longer hold their position as a high end phone, they lost their status 5 years ago. They have to compete with the middle tier phones and their profit margins will be dismal. The suppliers will be choosing between a rapidly diminishing market for Apple products or exponential growth in China. The trade war will prove to be the most disastrous policy to America's incredible tech sector, sadly it is mostly self inflicted.

    June 26, 2019
    Reply
  17. 727,968,667,890 views said:

    apple appl is not small company that is world top smartphone maker before ranking to top world couple of years this is disaster if apple just move because of crazy trump adminstration law rather than just stay in china until 2022 election trump sure lost

    June 26, 2019
    Reply
  18. r p said:

    This news helps Huawei, as it is trying to sell its cellphones in China on its New Hongmeng OS. Apple helps by announcing it is abandoning China leaving 3 million workers jobless.

    If you knew the Chinese well, it is a push-and-pull effect on them to buy Huawei instead of Apple. This is a positive boost to Huawei's to consolidate its Hongmeng base in China. The next step is to regain the European market.

    June 26, 2019
    Reply
  19. dr no said:

    Great that just going to make china ban Apple products completely a whole lot easier. So long apple from the world largest market. Lmfaooo that will be the final nail in the coffin for Apple. Haha

    June 26, 2019
    Reply
  20. Gusti Chokorde said:

    also china must banned (/impose huge tariff) to Apple, US chip made, US software, US services, US branded etc, inside any brand of laptops smartphone tabs smartTV smartVR etc, on domestic china market too.

    June 26, 2019
    Reply
  21. dragondescendant1 said:

    Like Apple has any choice, Apple is dead as soon as tariff is raised and the rise of Huawei, Apple has no chance no future in China.

    June 26, 2019
    Reply
  22. Austin Lee said:

    Apple moving away from CHINA is a sign of failure to complete. Huawei is control by Chinese liberation party. Who control Apple???American Government. Who's Stopping Apple to move their company back to United States.??? United States envy China ""

    June 26, 2019
    Reply
  23. Bubba Shipes said:

    It is all a fasade! America & China are putting on a show for the world, just to get others onboard and talking about ways to not only make peace….but to make each country TRILLIONS in trade dollars! 😎 🇺🇸 & 🇨🇳 👦

    June 26, 2019
    Reply
  24. DXD 2018 said:

    Apple to China means full security to banking sharing data… Google/Huawei is not safe at all! All chinese bought Apple iPhone to trust banking!!!

    June 26, 2019
    Reply
  25. Fiction Science said:

    Looking forward to $2000 iPhone.

    June 26, 2019
    Reply
  26. 漢仔 said:

    I can feel US deep jealousy of China. Why don’t u produce your own 5G instead of lambasting others not to use HW 5G? Why are u such a sore loser? Just compete.

    June 26, 2019
    Reply
  27. 漢仔 said:

    US hate CCP, but why they allow so many companies to set up their base in China. That is because China is the only ctry where they have a manufacturing hub that can produce products cheaply, fast , on time, with no manufacturing parts they can’t produce or get. No trade unions boycott, no lawsuit filed. Moreover, China has a appetite for high valued consumer products . So the companies made the products, they can sell it to the mainlanders in double quick time, with no import duties or other forms of taxes .

    June 26, 2019
    Reply
  28. 14K Triad said:

    Chinese Companies already copied everything from Apple and Samsung… its call Huawei … All worldwide Companies are leaving China due to intellectual theft and the Tariff War. China will soon have an economic collapse and depression.

    June 26, 2019
    Reply
  29. Budiman Tedja Saputra said:

    Taiwan is only puppet from U.S, They do their master's order.
    Who is the master of Taiwan ?…. You already know that !.

    June 26, 2019
    Reply
  30. Hadji Bouchrit said:

    Apple should have never produced those amazing Apple products in China, in the first place !

    These Chinese authorities are pagans and communists, hellbent on domineering the rest of the world!

    Trump is here to stop this worldly nightmare scenario!

    June 26, 2019
    Reply
  31. Theta Kongpancake said:

    He doesnt make anything happen He Is A Puppet. Thats why his comments had to be clarified by a lowly assistant. #LowClassChina

    June 26, 2019
    Reply

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