US trade war with China continues
|The fierce" trade war " between the United States and China resulted in an increase in import duties on a number of Chinese-made goods and the introduction of sanctions against a number of Chinese companies. Apple's contractors have begun to increase their presence in other countries in recent years, and industry experts believe that this trend will not go away under the new US President. |
Recently it became known that Foxconn will launch the production of iPads and MacBooks in Vietnam, although Apple tablets have so far been produced exclusively in China. The company is ready to invest $270 million in the development of Vietnamese production. According to experts Gavekal Dragonomics, whose comments are referenced by Bloomberg, the transfer of production outside of China will contribute to the growth of living standards and wages in this country, and the unpredictability of American policy will serve as an additional incentive. Vietnam and India will improve their investment attractiveness, so local production will appear in these countries without regard to the relationship between the United States and China.
Pegatron intends to spend $150 million to develop iPhone production in India, the new company will start operating in this country at the end of next year. The company is also considering building a facility in the US, and Foxconn has already done so. Wistron, also an Apple contractor, intends to build new businesses in Mexico and Taiwan, while the company will acquire the former Western Digital facility in Malaysia. By 2021, half of Wistron's production capacity will be located outside of China.
On the territory of China, competition between Apple partners will also increase. The Chinese company Luxshare is getting more and more powers — it will be entrusted with the Assembly of the iPhone. It took Foxconn about 30 years to develop production in China, so management does not believe that other regions will be able to match the scale of China overnight. According to experts from Gavekal Dragonomics, in the next five years, China will maintain its leading position as a platform for assembling electronic devices.
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