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by DaiPlusPlus 2146 days ago
Consider that Apple's supply chain is centered around the PRC - if Apple PR ever says the /wrong/ then then Foxconn would immediately find their factories closed and Apple wouldn't have their latest iPhone available come October - and Christmas.

I'm surprised it took until very recently for Apple to start spinning-up alternative supply arrangements and manufacturing in other countries - I guess they expected that the PRC would improve their human-rights situation by now.

2 comments

> if Apple PR ever says the /wrong/ then then Foxconn would immediately find their factories closed and Apple wouldn't have their latest iPhone available come October - and Christmas.

Is that something China could realistically do without irreparably harming themselves in the process though? It’s not just Apple’s supply chain that goes through China, it’s everybody’s. And once China demonstrates they are willing to do that, everybody is going to see a China-based supply chain as a gigantic business risk and look elsewhere. Apple can weather that kind of setback, but it would be an existential threat for most businesses and they would need to be proactive. Apple would go elsewhere and lay down the infrastructure, then everybody else would follow in their footsteps.

As far as I can see, China can throw their weight around to a certain extent but their hands are tied when it comes to stronger action because "Apple’s PR saying the wrong thing" is nowhere near as harmful to them as companies diversifying their supply chains en masse.

One small possibility for hope: Foxconn is a Taiwanese company with factories around China but that has also no expanded to other countries. Apple can (and is slowly) work with Foxconn to progressively move bits of its supply chain out of the PRC. It's already producing some iPhone in India and some other devices in the USA. Given the current political climate, they really ought to diversify out of China as a sound business decision, even if they have no plans to take a stance.