Apple shifted orders from Foxconn to Luxshare to assist $275B China deal

Posted:
in General Discussion edited December 2021
A new report details how Apple has increased its reliance on Chinese supply chain partners, including Luxshare, which is reportedly poised to unseat Foxconn as Apple's primary supplier.

Apple Store in China
Apple Store in China


The new details follow a report from earlier in December revealing an alleged secret deal that Apple made with the Chinese government to invest in local companies. The Information on Thursday has revealed what some of those investments entail.

For example, Apple has shifted more of its supply chain business to China-based companies. The Information says this is Apple CEO Tim Cook fulfilling his pledge to help Beijing expand its local technology industry.

A year after the deal was made, for example, Apple tapped Luxshare to assemble AirPods. That ended the dominance of Taiwanese-based firms in Apple's assembly chain.

The deal with Luxshare marked a "turning point" for Apple and China, The Information says. It propelled Luxshare to the top-tier of Apple suppliers who handle assembling and packaging finished consumer goods.

Luxshare, which already exceeds Foxconn in market capitalization, may even positioned to unseat Foxconn as an Apple supply chain heavy-hitter. Foxconn, worried about the fast-rising Chinese firm, has even reportedly assembled a team to study the company.

According to The Information, the $275 billion investment deal between Apple and China is a way for the Cupertino tech giant to cut costs and "curry favor with Beijing." China is a critical company for Apple, representing about 20% of its revenue. It's also a precarious market, with consumers at times boycotting Apple products in favor of local brands.

Read on AppleInsider
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Comments

  • Reply 1 of 55
    cg27cg27 Posts: 169member
    Just as I predicted in previous article post.

    But I’m sure this will turn political nonetheless.
    williamlondon9secondkox2GeorgeBMac
  • Reply 2 of 55
    Maybe Cook can help India expand its local technology industry?
    williamlondonAnilu_7779secondkox2radarthekatGeorgeBMac
  • Reply 3 of 55
    tmaytmay Posts: 5,722member
    edited December 2021 seanjmariowinco
  • Reply 4 of 55
    ronnronn Posts: 507member
    China will not only bite the hand that feeds it. It will devour the food giver entirely if the feeder is not smart. Apple should continue to diversify its supply chain/manufacturing partners. It just has to be smart, highly involved in every aspect and never lose sight of its values. Profit isn't everything.
    tmaywilliamlondonAnilu_777AppleUfmyIseanj9secondkox2martenf
  • Reply 5 of 55
    lkrupplkrupp Posts: 9,991member
    ronn said:
    China will not only bite the hand that feeds it. It will devour the food giver entirely if the feeder is not smart. Apple should continue to diversify its supply chain/manufacturing partners. It just has to be smart, highly involved in every aspect and never lose sight of its values. Profit isn't everything.
    Who are you kidding? "never lose sight of its values”, " Profit isn't everything.”

    For publicly traded companies profit IS everything. Values and ethics be damned. I remember when actor Charlton Heston (Moses for God’s sake) got up in front of a Time Warner shareholder meeting and read the disgustingly filthy, misogynistic, racist, bigoted lyrics  by rap artists the company’s record division sold. Shareholders were disgusted and angry that Heston assaulted their precious ears with filth. But did they demand that those recordings be taken off the market? Not on your life. Why? Because MONEY.
    edited December 2021 mariowincoAppleUfmyIh2p
  • Reply 6 of 55
    cpsrocpsro Posts: 2,996member
    Maybe Cook can help India expand its local technology industry?
    Maybe he can help the U.S. in this.
    williamlondoncat529secondkox2
  • Reply 7 of 55
    cpsro said:
    Maybe Cook can help India expand its local technology industry?
    Maybe he can help the U.S. in this.
    From Foxconn India fiasco we can see how it is able to manufacture iPhones in such huge quantities at low cost. Can he copy the same model to US? It is impossible. 
  • Reply 8 of 55
    ronnronn Posts: 507member
    lkrupp said:
    ronn said:
    China will not only bite the hand that feeds it. It will devour the food giver entirely if the feeder is not smart. Apple should continue to diversify its supply chain/manufacturing partners. It just has to be smart, highly involved in every aspect and never lose sight of its values. Profit isn't everything.
    Who are you kidding? "never lose sight of its values”, " Profit isn't everything.”

    For publicly traded companies profit IS everything. Values and ethics be damned. I remember when actor Charlton Heston (Moses for God’s sake) got up in front of a Time Warner shareholder meeting and read the disgustingly filthy, misogynistic, racist, bigoted lyrics  by rap artists the company’s record division sold. Shareholders were disgusted and angry that Heston assaulted their precious ears with filth. But did they demand that those recordings be taken off the market? Not on your life. Why? Because MONEY.
    "For publicly traded companies profit IS everything."

    That wasn't always the case and as current thinking goes, it isn't the only philosophy amongst companies. Indeed when Friedman spouted his nonsense in 1970, it was met with derision and has been challenged for more than a generation. Consumers will make demands on and even walk away from shitty companies that focus solely on profit. Don't forget Apple was once at the precipice with that BS profit maxim as the operation principle.
    tmayelijahg
  • Reply 9 of 55
    Bosa said:
    cpsro said:
    Maybe Cook can help India expand its local technology industry?
    Maybe he can help the U.S. in this.
    It will be hard but possible if the business environment such as taxes are made friendlier , but certainly not with current tax you to death  people in charge . 

    Not a political statement but just stating a fact 
    Tax is not as high as you imagine. Otherwise why the US deficit running so high year after year? 
    mariowincoGeorgeBMac
  • Reply 10 of 55
    crowleycrowley Posts: 10,154member
    Bosa said:
    cpsro said:
    Maybe Cook can help India expand its local technology industry?
    Maybe he can help the U.S. in this.
    It will be hard but possible if the business environment such as taxes are made friendlier , but certainly not with current tax you to death  people in charge . 

    Not a political statement but just stating a fact 
    Hardly a fact, business taxes in the USA are pretty darn low compared to most other times this side of the Great Depression.
    ronnmariowincoGeorgeBMacrobaba
  • Reply 11 of 55
    ronnronn Posts: 507member
    Bosa said:
    cpsro said:
    Maybe Cook can help India expand its local technology industry?
    Maybe he can help the U.S. in this.
    It will be hard but possible if the business environment such as taxes are made friendlier , but certainly not with current tax you to death  people in charge . 

    Not a political statement but just stating a fact 
    Har!! Taxes have gone down a great deal. Under both Dem and GOP administrations. And tax loopholes ensures most large corps pay a pitiful amount of, if any, taxes. 
    edited December 2021 mariowincoDogpersonGeorgeBMacrobaba
  • Reply 12 of 55
    cpsro said:
    Maybe Cook can help India expand its local technology industry?
    Maybe he can help the U.S. in this.
    US?? America helps China during Dengs tenure, thinking that the CCP will change….will it did not BUT embraced capitalistic economy with CCP controlling everything. So let’s be wised and learn, it maybe no too late. 
    tmay
  • Reply 13 of 55
    genovellegenovelle Posts: 1,368member
    Bosa said:
    cpsro said:
    Maybe Cook can help India expand its local technology industry?
    Maybe he can help the U.S. in this.
    It will be hard but possible if the business environment such as taxes are made friendlier , but certainly not with current tax you to death  people in charge . 

    Not a political statement but just stating a fact 
    Taxes are not even a real factor. In fact if it were you wouldn’t have individuals amassing over $200 billion each. 

    The issue is that our citizens haven’t made the $3.15 an hour they make to build iPhones in China in over 25 years as it went up up $4.75 in 1996 and then $5.15 in 1997. The last move was to $7.25 in 2009. Think about that. People working jobs that pay minimum wage with poor conditions and no benefits saw their worth increase by $4.10 over 25 years. That’s about a 16 cent raise per year. Trust me inflation was a lot more that 16 cents. 

    For instance, a Honda Civic started at $11,000 in 1996 they start at 22,000 now. 

    Playing taxes down at average rates it’s $417 per month plus insurance, gas and maintenance. So, maybe about $647 monthly for one of the cheapest cars on the market. . 
    Keep in mind their take home if they are lucky enough to get 40 hours a week is $987 so they would have $340 left for fun stuff like shelter, food, and medicine. 

    Ironically, the ones currently in office have fought the others to provide support for those who have not made out like bandits over the last too year while everyone else suffered. They have done what was needed while the others did nothing but fight for power and get rich. 
    edited December 2021 williamlondonDogpersonGeorgeBMacrobaba
  • Reply 14 of 55
    tmay said:
    How is it "values" when the article YOU quoted says they were forced to!?

    Intel said it had been "required to ensure that its supply chain does not use any labour or source goods or services from the Xinjiang region" following restrictions imposed by "multiple governments".
    williamlondonh2pGeorgeBMaccat52
  • Reply 15 of 55
    Just pull all manufacturer out of China.  They will use the money we pay them to build their military and attack us at some point in time.  We are stupid to think otherwise.  All they have to do now is claim ownership of an American company in China and take it and all it’s assets and IP over and we are powerless to do anything.  But the shareholders will cry and ask our average American sons and daughters in the military will be asked to step up and ensure the .1 of 1%-ters keep their share.  We should never have enrich our advisories for profit and we never ever should have exported our superior computer technology around the world giving up our supremacy.  Gloomy picture, I know.  But the world is run by a few greedy families and its all legal and very obfuscated.
    williamlondonh2pseanj9secondkox2Dogpersoncat52
  • Reply 16 of 55
    Just pull all manufacturer out of China.  They will use the money we pay them to build their military and attack us at some point in time.  We are stupid to think otherwise.  All they have to do now is claim ownership of an American company in China and take it and all it’s assets and IP over and we are powerless to do anything.  But the shareholders will cry and ask our average American sons and daughters in the military will be asked to step up and ensure the .1 of 1%-ters keep their share.  We should never have enrich our advisories for profit and we never ever should have exported our superior computer technology around the world giving up our supremacy.  Gloomy picture, I know.  But the world is run by a few greedy families and its all legal and very obfuscated.
    This is bs propaganda! Why would a nation busy producing goods for the world plan to attack in the future? Only a hateful person will use this kind of logic. 
    9secondkox2GeorgeBMac
  • Reply 17 of 55
    flydogflydog Posts: 1,092member
    Shocking news. A company switches suppliers to cut costs and to increase its prospects in a particular market. 


    radarthekat
  • Reply 18 of 55
    flydogflydog Posts: 1,092member
    genovelle said:
    Bosa said:
    cpsro said:
    Maybe Cook can help India expand its local technology industry?
    Maybe he can help the U.S. in this.
    It will be hard but possible if the business environment such as taxes are made friendlier , but certainly not with current tax you to death  people in charge . 

    Not a political statement but just stating a fact 


    The issue is that our citizens haven’t made the $3.15 an hour they make to build iPhones in China in over 25 years as it went up up $4.75 in 1996 and then $5.15 in 1997. The last move was to $7.25 in 2009. Think about that. People working jobs that pay minimum wage with poor conditions and no benefits saw their worth increase by $4.10 over 25 years. That’s about a 16 cent raise per year. Trust me inflation was a lot more that 16 cents. 

    You’re clueless.  Minimum wage in 1989 was $3.35, and you’d be lucky to find any fast food restaurant that would pay more. That $3.35 is equivalent to $7.69 in today’s dollars. The average minimum wage is now $12 per hour, and the average pay at a McDonalds is $15.



    radarthekathogman
  • Reply 19 of 55
    Just pull all manufacturer out of China.  They will use the money we pay them to build their military and attack us at some point in time.  We are stupid to think otherwise.  All they have to do now is claim ownership of an American company in China and take it and all it’s assets and IP over and we are powerless to do anything.  But the shareholders will cry and ask our average American sons and daughters in the military will be asked to step up and ensure the .1 of 1%-ters keep their share.  We should never have enrich our advisories for profit and we never ever should have exported our superior computer technology around the world giving up our supremacy.  Gloomy picture, I know.  But the world is run by a few greedy families and its all legal and very obfuscated.
    This is bs propaganda! Why would a nation busy producing goods for the world plan to attack in the future? Only a hateful person will use this kind of logic. 
    Apparently someone hasn’t seen chinas military recruitment video… nor paid attention to the news that China developed and successfully tested a middle that can travel the globe and be within 10 miles of target accuracy - something that somehow was done right under the noses of U. S. intelligence. 
    williamlondonronnAppleUfmyIDogpersoncat52
  • Reply 20 of 55
    ronnronn Posts: 507member
    Just pull all manufacturer out of China.  They will use the money we pay them to build their military and attack us at some point in time.  We are stupid to think otherwise.  All they have to do now is claim ownership of an American company in China and take it and all it’s assets and IP over and we are powerless to do anything.  But the shareholders will cry and ask our average American sons and daughters in the military will be asked to step up and ensure the .1 of 1%-ters keep their share.  We should never have enrich our advisories for profit and we never ever should have exported our superior computer technology around the world giving up our supremacy.  Gloomy picture, I know.  But the world is run by a few greedy families and its all legal and very obfuscated.
    This is bs propaganda! Why would a nation busy producing goods for the world plan to attack in the future? Only a hateful person will use this kind of logic. 
    Africa (Zambia, Uganda, etc), South America (Ecuador and Venezuela), Europe (Montenegro) and Asia (Sri Lanka and Malaysia) are burdened with Chinese loans negotiated by corrupt and/or totalitarian dictatorships that have placed them in debt-trap situations. It really should be called Death-Trap "Diplomacy" as the CCP will eventually make demands on oil reserves, airports, sea ports and other sovereign assets. Some of the terms are onerous. Once the defaults are official, it'll be all over for 100s of millions.
    williamlondonAppleUfmyIDogpersoncat52
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