Apple has long distanced itself from China. What was once the factory of the world is losing customers every day, and those of Cupertino begin to no longer depend on it. Regulatory excesses, limitations due to the pandemic, tensions with Taiwan and many more are causing its particular capital flight, which does not seem to be abating in the near future.
Apple is exploring other markets like India and Vietnam, where production costs remain low compared to the United States or Europe, but where regulations, issues and political tensions are lower. Ideally, those in Cupertino would manufacture their products in the United States, and although that now seems unfeasible, measures are being taken in this direction. Not for setting up complete production lines, but for some key components.
Apple abandons China for the United States
On this occasion, Apple has just announced a billion dollar contract with Broadcom for the development and production of 5G-related components in the United States. This may be another indication that Cupertino wants to stop relying on Qualcomm and work on its own modems for the iPhone. Tim Cook said that:
“We are excited to make commitments that harness the ingenuity, creativity, and spirit of innovation of American manufacturing. All Apple products depend on technology designed and built right here in the United States, and we will continue to deepen our investments in the American economy because we have an unwavering belief in America’s future.”
It is clear that each of these movements taken separately does not tell us anything concrete, but when you take them all together it’s pretty clear: Apple wants to stop depending on China, start manufacturing components in the United States and assemble the iPhone in countries like Vietnam or India.
This way, the company will have fewer headaches with China, it will support the US economy, and it will keep production costs at levels similar to those of today. It’s obvious that It will be a long and expensive process., but it will probably end up benefiting everyone. Well, everyone except China, of course.
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