Apple shifted orders from Foxconn to Luxshare to assist $275B China deal
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
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
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
Comments
But I’m sure this will turn political nonetheless.
Because profits...
https://www.reuters.com/technology/intel-facing-china-backlash-after-xinjiang-statement-2021-12-23/
Because values...
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.
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.
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".