Why Apple is Rushing to Move Production Out of China

Apple has developed a manufacturing monster known as 'iPhone City' in Zhengzhou, China. Almost every iPhone in the world is made there, but Apple is looking to move out of China, and the real reason why is disturbing. Check out today's new video to learn about a different side of one of the largest companies in the world.

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All videos are based on publicly available information unless otherwise noted.

[GrievousReborn]

This is why you should never let these corporations preach at you about morality because they don't have the morals themselves

[Faded______]

First time I've ever heard someone say apple's prices for their products are "reasonably low" as Apple's prices have always seemed unreasonably high considering the pieces that makeup the insides of Apple products have never been top shelf.

[OtisFlint]

I used to work in Supply Chain Mgmt in the electronics industry. We started moving a lot of production to Vietnam 10 years ago, but much of the components still end up sourced from China. It's pretty much impossible to be fully free of China in the electronic industry, but it's slowly progressing.

[Eesco]

Well, it’s like I’ve told my colleagues. When employees have had enough of unfair treatment, they will go elsewhere & seek something better at the expense of a company. Why should they care for a company when it’s that company that doesn’t care for them. A company only works when employees are happy & content with their lifestyle, especially the backbone of it.

[Wakizaka_Yasuharu]

Hey, as long as a country is lucrative, companies don't care about the crimes committed by the one who controls it. As long as it makes money.

[diyson]

You gotta love Ricky Gervais for pointing this out at the Golden Globes to their faces.
👏👏👏

[arbabk]

So the real problem is the shareholders of the companies demanding that profits keep increasing year after year. This prevents companies from adjusting their profit margins and paying workers more 😒

[sykaax]

I don’t understand why the author of the video says that the Chinese are not paid extra? The author of the video knows that people in China half a century ago were dying of hunger because they did not have work and food. The standard of living of the average Chinese has increased tenfold in recent decades. I think that about 90% of the Chinese in these factories are happy and very happy to work for this money and these hours. Don't compare their life with American or European or Japanese or Taiwanese, they are completely different situations.

[HyperactiveNeuron]

To be fair, it's more about keeping corporate profits high and not keeping prices down for consumers. If their production costs went up 5, 10 or 15% Apple would actually pass the cost on to the consumer because they refuse to lose profit. Just look at how they treat app creators. The take a 30% cut for simply allowing an app on their store after forcing them to follow 100s of rules and doing absolutely no work themselves. This behavior is how Apple became the first trillion dollar company.

[mathnerd]

This whole international scramble, because Apple threw out the idea of "better pay and working conditions" as unacceptable.

[jhonnewell]

This is why the US needs to introduce a law that would prevent US companies ( Headquartered in the US ) from outsourcing work to countries that have labor violations / children workers.

[Sheyii]

What makes the iPhone so good? The tears of factory workers making the devices

[brawlercaeryck]

Hey Apple, remember when you changed the air drop for chinese citizens so they had to manually turn it on to receive air drops during their protest. I remember.

[Silo-Ren]

With all the billions they got, they could built there factories here pay Americans great wages help our economy and still have billions left. Greed ! that's what's it's all about.

[LeonCouch]

Nice summary about the topic and the details. You're right about how the COVID and geopolitical situations has shown distributing manufacturing to numerous places, due to unpredictable global supply chains, which means some more expensive complications. Seems like Vietnam often does a good job in terms of production, dedication, and improving labor conditions (I've visited there many times and seen some factories there, including during an unannounced inspection), but I hadn't considered the small size of their population. I hadn't thought of India and its political structure influencing the location of factories (or not). You know, Mexico (despite Zeihan's explanations) is close by to us and might be the right place to go, despite not ideal for this type of manufacturing at this moment: Developing this large countries capabilities, Mexico, would be ideal for the USA in many ways from political to economic. // Maybe Apple could accept lower profits and just produce phones in ways that are more respectable in an atmosphere with a government and society that aligns more with their customers' values. Afterall, China has Hawei, which was doing well for Chinese and other places that don't share those values. // on another point, do we really need new iPhones every year? Maybe people should spend less on fancy phones or buy them less often.

[NoKapMan]

The success of capitalism relies on efficiency. Capitalism is not modern slavery and does not enable slavery. It encourages slavery to be more efficient.

[davidperry]

Keeping your gadgets and gizmos as long as you can before replacing is the solution to this problem.

[GoldRaven-oeby]

Not to be that guy but samsung makes their stuff in vietnam, india, south korea, brazil and Indonesia basically zero of it comes from china

[richardalex]

Any other location change will lose Apple money. Apple executives would rather strangle their children rather than lose a single dollar.

[hunter]

Solution. Less production of new products, hire people to repair the old. And stop forcing users to switch to the newest models. Environment wins, consumer wins, workers win, America wins.