This post was last updated on August 6th, 2022 at 04:18 pm
As the center of the global supply chain, China is favored by foreign companies because of its outstanding strength in the manufacturing field. For example, Apple, Adidas, Nike, BMW, Volkswagen, etc. Among them, Apple really is currently making a lot of money during its OEM processing in China. However, with the changes made in China, as well as the changes in Chinese consumption patterns, and the rise of Chinese domestic electronic products. It’s will come as no surprise if the apple production line relocates to Vietnam.
Apple Production line Relocates to Vietnam: What The Media Has To Say!
Apple seems to realize that it can’t continue to feed the Chinese. So, it came up with the idea of withdrawing production lines from China. According to the news previously reported by the media, Apple has moved the production line of iPad tablets to Vietnam.
As a result of this move, it means that the origin of Apple tablets will be changed from the original made in china to make in Vietnam.
Expectedly, in the face of this situation, the Japanese media accused Apple of shifting the production line because it was China’s fault.
In addition, it is generally believed that China is mischievous. The reason for this is that the British media once claimed that China had caused a global supply chain crisis. Some quarters also believe that China is the “culprit” of inflation in the United States.
Real Reason Why Apple Production Line Relocates to Vietnam
In fact, the reason why Apple has moved its tablet production line to Vietnam is entire because the Chinese labor market’s favorable impression of Apple has dropped sharply.
This is due to the fact that for every mobile phone sold by Apple, Chinese manufacturers can only get 1.8% of the profit, which can be called “pennywise pound foolish”. And because of the rise of China’s domestic mobile phones, it makes almost no difference whether there are Apples in domestic factories.
In addition, China’s industries have become the most comprehensive industrial system in the world. Made in china products can be said to have even surpassed the sum of the United States, Japan, and Germany.
Therefore, Apple believes that continuing to stay in the Chinese market seems to be equivalent to “digging its own grave”.
Because even if Apple is not currently eliminated by the Chinese market, with the passage of time and the development of Chinese factories, Apple is likely to be eliminated by the Chinese market.
After all, if Apple wants to use 1.8% of its profits, it will simply mean it will let Chinese factories and the Chinese labor force work for Apple for free which is impossible.
Without any gainsaying, Apple will definitely be eliminated by the Chinese market in the future.
It is only sensible that Apple will choose to gradually migrate production lines. Currently, it is a tablet computer, and it is very likely that all production lines will be migrated in the future.
But Apple seems to have forgotten that even if the production line is transferred to Vietnam, it is still within the radiation range of Chinese manufacturing.
Would Migrating Product Line Completely Cut Apple’s Ties With The Chinese?
Unknown to many, products and raw materials in many parts of Vietnam still need to be imported from China. This would be a setback to Apple’s dream of getting rid of China completely.
As for the remarks made by the Japanese media, it may be for the sake of showing goodwill or solidarity with the USA.
Sadly, the truth is Apple will tend to lose more if it doesn’t leave the Chinese market as soon as possible. Failure to leave soon will result in it being actively eliminated by the Chinese market in the future.