How China Tricked Apple

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ABOUT JOHN COOGAN:
I am the co-founder of soylent.com and lucy.co, both of which were funded by Y Combinator (Summer 2012 and Winter 2018).
I've been an entrepreneur for the last decade across multiple companies. I've done a lot of work in Silicon Valley, so that's mostly what I talk about. I've raised over 10 rounds of venture capital totaling over $100m in funding.
I work mostly in tech-enabled consumer packaged goods, meaning I use software to make the best products possible
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Disclaimer: This video is purely my opinion and should not be regarded as a primary source. I am not a financial advisor and this is not a recommendation to buy or sell securities. Always do your own due diligence.

[@JohnCooganPlus]

Join my Discord here: discord.gg/e9nKhPCNkq Enter your email here: johncoogan.com Follow me on Twitter here: twitter.com/johncoogan Please ignore all the bots in the comments! I'll never ask you to message me.

[@CarlWithACamera]

China is not ‘Apple’s manufacturer.’ China is ‘the world’s manufacturer.’ Before you criticize Apple maybe go look at conditions in the factories that manufacture toaster ovens, and the tens of thousands of other products sold in Walmart and every other retailer on earth. Apple’s profit margins allowed it to push to double workers wages twice in the last ten years, allowed Apple to influence working conditions and allowed Apple to impose more environmentally friendly manufacturing methods along with powering more of its supply chain with renewable energy. But go ahead and take the easy pot shots at the company doing the most to affect positive change, because we all know, John, that you carry an iPhone and your videos are edited on Macs. Tim Cook has stated that if you want to affect change it’s better to engage than to boycott. Never mentioned in this video. India is not known for worker rights or even for paying their workers the promised amounts in their contracts. But this is not the reason you gave for not moving to India. Maybe a follow up video that’s more even handed might be in order.

[@hurry2011]

Apple will have no choice but to re-shore manufacturing to the USA, Sony re-shored a large share of its manufacturing back to Japan thru complete automation. A 25% tariff on imported iPhones will help make it a reality. The tensions between China and the US keep rising, it's a security risk for the US to keep buying iPhones and other Apple products for more than $400 billion/yr and sending so much money to an economic and geo-political rival. Does Apple pay taxes in the US? It avoided taxes for decades by shifting most of its revenues to Ireland and obtained a deal where it pays a tax rate of 1%.

[@CarlWithACamera]

@@hurry2011 and yet Apple Pay's taxes at about a 23% rate in the United States and in absolute dollar terms is the largest US tax payer. I've followed apple in deep detail for over a decade and am a moderator on AppleInsider, the largest Apple-centric news website. There's not much I don't know about Apple and the many misconceptions and streams of misinformation about the company.

[@hurry2011]

@@CarlWithACamera Apple has avoided taxes by shifting revenues to Ireland for decades and the practice persists despite changes to US laws. Irish Times headline: "Apple still biggest firm in Republic, with revenues just shy of €180bn", €180bn is $191bn. It's ~ 1/2 of Apple's global sales. Apple is not alone in this practice by it is the largest benefactor from it.

[@CarlWithACamera]

@@hurry2011we're taking about two different things. I responded to Apple's US tax remittances. You bring up one aspect of their overseas taxes.

[@k.h.p.9862]

At the end of the day, it's all about profit for Apple. China might not be innocent, but Apple isn't exactly naive about any of this. They chose of their free will to engage with China. Apple wasn't tricked at all. All about $$$ (profits).

[@jaimerodriguez1550]

Apple has already reaped it's benefits, now it has to deal with the costs.

[@johnsmith-cw3wo]

@@jaimerodriguez1550 also is hilarious that the company that do all the human right violations come from ''democratic Taiwan'' (FoxConn)

[@joegentry5337]

Well, yeah. What do you think is the purpose of creating and growing a company? As a publicly traded corporation in America, Apple’s only legal responsibility is to create value (ie. profit) for shareholders.

[@bobweiram6321]

What I find interesting is how China's partnership with Apple resulted in a dramatic improvement of its infrastructure and prosperity for its middle class. Apple, on the other hand, pocketed all of its profits with its home country's infrastructure in shambles and its middle class clinging for its dear life.

[@breadnewbie6326]

don't forget that china have nothing to do with Foxconn management which is taiwanese company.

[@thaisiggi]

Foxxconn is a Company from Taiwan producing iPhones in China Shenzhen

[@tk9780]

Foxconn have all but pulled out China, moving Apple iPhone production to places like Indian

[@peterleung8372]

India is better got out of one hole JUMP INTO THE OTHER

[@foulbowlsoup]

@@tk9780 let's see what will happen to quality when it moves to india.

[@MMLL369]

My family been in the manufacturing industry for decades, and I do not agree how the Chinese initiated the "Quality Fade" scam. Before 2010, most Chinese manufacturers do not pro-actively provide solutions for their clients, manufacturers merely producing whatever they've been told, no more and no less. The Quality Fade strategy was employed, not so much from the Europeans but mostly US companies, cutting corners down right to second digits of the decimal point. Oh yes, especially the big brands with excellent reputations, they know their loyal customers would believe in them and the brand could get away from negative PR and CS by pushing all the blames to Chinese manufacturers.

[@tekboi1984]

Oh is that how it worked? 😂

[@tekboi1984]

I'm aware of a different type of "quality fade" scam

[@weirdshit]

Thought it was manufacturing strategy to gradually reduce quality via cost control. The pioneer product usually would have better quality components. Once the product has stable release and the manufacturing would reduce the costing via its components quality. They would time the product demise based on the item warranty. Even big non-china brands have its fans pissing on their quality issues due to lower quality. Its rarely you would get good old stuffs(ultra durable) from the old days from current products. Anyways: Lots of falsehood in this video. 😵‍💫

[@MMLL369]

@@weirdshit You are correct especially for products involving electronics. But then, there are thousands of other products out there that run with different rules. For products that involve more laborious processes, cost-savings are often recovering from efficiencies on manufacturing and not replacement of parts or materials. Guess what? US brands usually eat into that tiny margin too however, to keep the factories alive, while they press on the costs, they increase the volume to balance it out.

[@devcrown9392]

Bring manufacturing back to USA

[@rgarcia8876]

This "quality fade" was used in US from way back and we still recognize it as, for example, candy bars shrink in size, drinks shrink, air in the packaging increases, air in the recipe increases, etcetera. All while the price increases. Just remember how much profit plays in inflation. In some studies increased added profit being 54% of the increased prices.

[@wherdgo]

Shrinkflation - en.wikipedia.org/wiki/Shrinkflation

[@mbiwechijioke4204]

I never knew this happened in the U.S. I thought we only experienced this in Nigeria. Quality keeps dropping and prices keep soaring.

[@paulhirst9686]

I have just been laid off from a manufacturing job in the uk. Zero hours contract one days notice. I was personally bottling around 1000 bottles of high end supplements a day over 8 hours not 12. They sell for £40 per bottle.Even so I'm facked. Nothing to pay the bills that have doubled. China is not so bad.

[@parismetaphysics7360]

Agreed. I work 30 years for Banks, outsource providers. I mainly worked on IBM Mainframe environments. Take into account that 'back in the day' the way i got into I.T. was actually via going an Audio Engineering course. Back then it was, 'hey kid, you did a tec type job, your skill are good enough to be able to learn Mainframe processing.' You got the job. As I say, this lasted 30 years. I work days, night, weekends, easters, Christmas', new years eves. You name i worked it. In 2015, while working for St George Bank in Sydney Australia. The brains trust of Westpac (who had had taking over St George Bank - of course with the blessing of the Labor (communist) party of Australia decided to systemically retrench every St George Bank department, one by one. They offshore my job to IBM Google Services in Brazil. For me this was more than just a simple retrenchment. It was a way with the blessing of the Australian Govt of making a lot of people obsolete. As I am no longer a young lady, and at the time had a young family i had to find ways of earning a income. I did not have $50,000 to spend on retraining. Simply was not just money poor, but also time poor. I have been forced to scrap the bottom of the barrel and take up Rideshare (uber, didi, ola). Slave Labor rates for a so called free society.

[@xianfan7849]

In this story, a wealthy landlord gives a meager fee to a starving guy on the street to do the job. The starving guy hired many poor kids with even less money to do the job. The wealthy landlord cannot care less about how the starving guy treats the poor kids. You are telling me the starving guy tricked the wealthy landlord and is THE evil role.

[@timsuniverse9364]

Apple hires Foxconn to build Apple products. Foxconn is a Taiwanese company. Foxconn and Pegatron are Taiwanese companies. Foxconn doesn't build Apple products in Taiwan. Foxconn chose to build Apple products on the mainland to be able to meet the volume production demands. Now Apple is asking Foxconn to transfer some of the production to india and vietnam.

[@JJ-mf8ru]

I was wondering why this wasn’t mentioned at all. The main relationship is between Apple and Foxconn (Hon Hui Precision of Taiwan), not simply a Chinese mainland manufacturer. A lot of the things said about how Chinese manufacturers “trick” American brand owners does not apply to Foxconn. Why? Because Foxconn is Taiwanese and a foreign investor in China, just like Apple. Apple didn’t consider Vietnam because of some Vietnamese manufacturer-it only did so because Foxconn was willing to start operations there, together with Apple.

[@kevinrock9802]

this channel is misleading or just fooling. everyone in China knows the Foxconn, a Taiwanese company, substitutes labor for Apple, but this so called "expert" doesn't

[@MeiinUK]

​@@JJ-mf8ru: It's because the original semi conductor research was done by Taiwanese anyway in the USA. And not like Mongolian or Manchurian in the mainland. But it doesn't mean that prc didn't have their own. In a way, did only raised to power because of Taiwan and because of Apple. Therefore he is now in the central government seat. The state council. So what will happen next then ??.... In a way, this is a semi coup.... cos the people are wealthy. Raised their GDP. Vietnam already makes Samsung phones as well you see... so....

[@MeiinUK]

​@@jimthrowaway: Not everybody knows which comp made what. In a way, a company like apple, being pulled out of a hat trick was why we have seen globalisation rise across the globe. But at the same time.. this has brought a lot of risk to everybody too. So....

[@timbee71]

Offshoring your production is a trap. China, India, Vietnam - it doesn’t matter. The result is always loss of jobs back home and the permanent transfer of IP. Capitalism and the profit motive are what’s at fault. Apple? How about Tesla, Ford, GM? And a whole host of other industries. I hate sounding like a left wing radical, I’d rather be conservative. But here we are.

[@austincodes]

Just because your company is in a hard place doesn't make it less evil. They care about money more than human rights. The morality fade has been extremely obvious for a while now.

[@SM16Basketball]

Just to clarify: you are implying that human rights are more important than money, correct?

[@louisd6410]

The West benefits from human rights violation outside the west

[@austincodes]

@@SM16Basketball haha yeah

[@SM16Basketball]

​@@austincodes why?

[@johnsmith-cw3wo]

@@austincodes did you write than message form an iPhone ? 😂😂 - what do you use ?

[@Ink16888]

The title of this content should be ‘how apple took advantage of China’. China’s capacity made Steve Jobs dream a reality.

[@Allgood33]

The same as the West enjoyed an artificially sustained prosperous economy with China's cheap goods for decades then turned around and blamed China for the trade deficit and deindustrialization.

[@benfowler1134]

China didn't "make" anything. They just outsourced to Foxconn -- a Taiwanese company -- which operated _assembly_ plants in China.

[@wind-stone]

Yup! 100%

[@innosanto]

Did not take advantage of China. china had nothing, Apple gave high tech manufacturing jobs.

[@edwinvargas7969]

If anything, this shows how much humanity could accomplish if we all worked together.

[@ToneHelix97]

Nah, it shows how much one party could steal from another

[@suezbell1]

My sympathy is only for consumers -- not the businesses who keep raising their prices to keep their management compensation and shareholder profits rising with literally no regard to the stagnation of wages for much of the US labor force. Corporations and their owners and leaders -- infected with boundless greed -- wanted cheaper foreign labor and denied US workers fair wages in pursuit of their own profit. This has been going on since before I became aware of it as I was about to graduate from HS in '69.

[@tsamuel6224]

Reagan established the footings, foundation and framework for globalization. The hollowing out of America accelerated from there. It's deeply entrenched. India is the only option and is less risky than China, but will take decades just like China. But absolutely nothing competes with China's slave labor that I've heard of.

[@michaeld4861]

Agreed! When the only goal is to make money at all costs this is the result. Need some basic regulations and protectionism to thwart these greedy mf'ers making billions off the backs of slaves while we lose all our jobs and only have McDonalds left to work at.

[@janbour8152]

Of an iPad of $500, $100 is parts, $10 is manufacturing cost. Of which $1 is labor costs. And Apple is the kind of company that squeezes every cent out of suppliers, thus making people work 11 hours a day, seven days a week, rather than sharing a few cents more from their hundreds of dollars net profit. And then comes the American telling that Apple is victim of Chinese moral degradation. By the way all the expensive parts come from US, Japan, Korea. Only $1 of an iPhone or iPad goes into the Chinese economy. It is because of these huge profit margins of multinationals, that Chinese companies can out-compete them at much lower profit margins and lower prices and still make more money for themselves. And buying these cheap products actually benefits the American worker more then bringing production back home. Because that would mean working 11hrs a day 7 days a week for $ 3 an hour or even more expensive products because Apple wants huge profits margins. What multinationals do is bringing production to poor countries but still sell the product at the prices as if it was made at home, and thus pocketing huge profits. This kind of international trade impoverishes workers on both sides. It is very different from exporting to another country. That benefits both nations if the trade is balanced, because it makes things cheaper without losing income. And as the US pays for imports with debt they are never going te repay, basically China is giving away its products for free to the US. The Chinese accepted that exploitation as the only way to master the production technology so they can start produce themselves. Americans call that stealing. It is all very self-centered thought from people that enjoyed the highest living standards of the world, but have become victim of the unfair distribution of income. Americans are a hard working people that would be better off with no foreign trade at all and a fair divide of income. International trade is cause of tremendous imbalances. It creates booms followed by deep recessions. Like in the twenties also creating the climate for the second world war in Germany. It only benefits the ruthless traders of which Apple is certainly one. Jobs may have been a genius with a passion for design, he was also hard as nails. Posing multinationals as victims of moral degradation shows indoctrination. Still Apple will lay you off without blinking their eyes. Its owners love profit and nothing else, it is not the family affair they make people believe in. Protection only comes from government regulation and nothing else.

[@kimobrien.]

@@janbour8152 This is not 1945 where the rest of the industrial world was smoldering rubble and American bosses could export products using Marshall plan loans intended to receive capitalism from its own demise caused by the first world war. The only solution is for workers to take control of industry out of the hands of the profit makers and run in under a general overall worldwide plan. The end of capitalism is coming because the rate of profit must fall as machines replace skilled labor with unskilled labor. Capital produces nothing otherwise the construction of a perpetual motion machine would be possible. The greed of the bosses drives them to attack the trade unions and launch Imperialist war to defend investors foreign profits.

[@szymonbaranowski8184]

it should be will local producers as now consumers are slaves of corporations and turbocommercial marketing (plus control of media and education)

[@GlobalMan-nr3hq]

Nice content. A few noteworthy points to add: Apple went into China eyes wide open. It wasn't really "tricked" by China. The allure of lower labor costs from low skill to high skilled blue collar workers, lower supply costs, dexterous and hardworking workers, good infrastructure, proximity to huge China and in general, Asian market were and are still the main drivers. Interestingly, a few things have changed the aforementioned factors. For one, the cost of labor has risen in China though its still far lower than US or EU standards. Another is the competition from local Phone makers - the quality and functionality of the top smart Phones are roughly equal to the IPhone already and at a lower cost. The thing that still sets apart IPhone from the local brands for the local users in China is the attachment of "luxury" to the IPhone and all things Western. The real playbook from China is to attract foreign companies over either joint venture or, in Tesla's case. a fully owned foreign venture. The locals learn the manufacturing processes, production methods, quality control, supply chain management and a bunch of other "soft" knowledge. This knowledge is transferable - in other words the "osmosis" method helps bring up the entire capabilities of the region. This is a natural phenomenon and the consequence when companies moved to lower cost areas. We shouldn't attach anything really nefarious here to the host country . The wake up call is the awareness that globalization has the unintended consequence of the hollowing out of an industry and its supply chain ecosystem at home. We need to also understand that it is a foolish assumption that blue collar workers will suddenly move up the skill chain to become e.g. Software, Electrical, BioTech Engineers. They dont - many end up flipping burgers and other low end service jobs if that at all.

[@OmniUni]

I tend to agree with a lot of this. Similarly, that "quality fade" is hardly a Chinese exclusive. I see it happen in American companies as well. Really, any profit seeking company will first build up their market reputation and then seek to minimize cost. The extent to which they sacrifice their quality and morality to do so varies more based on the greed of their board of directors and ownership than on culture or country.

[@signupisannoying]

Very objective and true.

[@PadraicLey56]

I agree; China plays capitalism better than average Joe, or other countries understand it. Without China, Apple went bankrupt long ago. The Southern Chinese agile in business is incredible. China will be the world factory for a long time; it differs from how they stand still to take on the next challenge. Chinese wrote the "Book of Change." After the fact, like in this video with a click bait title, it sounds like he knew. At the time of 2008, where were all the smart ones? Ask him what he knows in the year 2033.

[@RahulSimha08]

Awesome points, Totally agree Chinese phones are becoming superior than IPhones, we already see that in cameras, Besides IPhone’s allure as mark of luxury is in the past, Chinese are switching to local phones, Indians can not afford iPhones and find value in Chinese phones, Apple market share going down is inevitable unless they have a breakthrough in value products

[@dannybetts6929]

It's not just to make a good company yearly profit anymore !! .its just plain evil greed!!!🔥

[@pepitocoronejo8495]

I like the term "quality fade!" Noticed this phenomenon long before China prominence while growing up in my country. Filipinos had/have very high tolerance for shoddy products that quality fade was the norm in the 70's and 80's.

[@ycanimedia9320]

IS THERE A VIDEO ON THIS?

[@glenmcneill1675]

Living in China and working in the Automotive sector the same recipe for success is necessary. Do a deep dive and work hand in hand with the supply base on preventative measures to assure good quality. It’s easy to dream of pulling out, however the advantages here are far more than skilled low cost labour ( robotics is taking over) it is the whole local infrastructure. There are hundreds of every type of manufacturing capability . Also companies willing to invest😊.

[@johndoh5182]

The US govt. could always slap a larger tariff on electronics coming out of China that deal with communications. There are MANY moves the US govt. could make that would force Apple to move away instead of doubling down in China.

[@dewiz9596]

A bit of rewriting of history. The iPhone plastic screen was NEVER going to be. According to Walter Isaacson’s Steve Jobs biography, the vision for the iPhone didn’t happen until Jobs visited the Corning factory and became aware of. Gorilla Glass. Similarly, when Obama asked Jobs why Apple didn’t manufacture in USA, Jobs stated “we don’s have the 5000 engineers that we need”.

[@dewiz9596]

And Steve Jobs would have had difficulty being direct with Barack Obama in 2012. . . since Jobs died in October, 2011. Dude, up your game!

[@dewiz9596]

Enough misinformation that I’m unsubscribing. . .

[@stanchung69]

@@dewiz9596 Alot of it was good though even though I have little trust in the way western media portrays the Uyghur issue. That lady reporter was also the foxnews equivalent in India with a bucklod of anti China sentiment bs

[@kthwkr]

The company I worked for had most of it's customers as the big car manufacturers. And they wanted to get into the Chinese market. China required for them to build a large portion of the car in China or else they couldn't sell there. So we were required to open a manufacturing plant in China to satisfy the car manufacturers obligations.

[@pedromarques9267]

Same happens in Brazil

[@monocledmanatee6355]

Heh. How did China's automotive industry come into existence? In the 90s there were Volkswages, Audis, Jeeps and a handful of crappy local brands. Then came Honda and Toyota. By 2012 the market exploded. All they needed was a lot of engineers - and they had those engineers trained by foreign manufacturers. Chinese cars were crap at the start (source: a LOT of Chinese), but they got MUCH better really fast. That's the China's strategy with everything: Entice them to build factories and TEACH YOUR PEOPLE. Start building cheap crap and LEARN. Import technologies. Import scientists. LEARN.

[@KingsleyOkeze]

You have an interesting way of telling this stories John. Thanks alot!

[@dylanroemer4277]

posibly wrong stories. i phone is not the best selling product of all time or evern the best selling phone

[@lorenz681]

What's the name of that court case that the supreme Court ruled that law enforcement has no duty to care?

[@butterflystampede1945]

Seriously so glad to find this channel. Deeply informative and plain rivetting.

[@annebokma4637]

Concentrating production in one country or even one region/country/area is a huge tactical blunder

[@isabelg1729]

and one they are willing to repeat in India this time.

[@theobserver3753]

They’re dug in too deep. Thanks for the comprehensive explanation.

[@phansam9833]

It comes down to the size of the country, the amount of people, and the capability of the people within that country. This is how you scale and grow a company. Just like weapons manufacturing.

[@kimberleymansfield1099]

A population of 1.5 Billion

[@CasperChicago]

This was very well produced; I go a lot of indepth information 👍🏾 Well done

[@C0mmander]

Apple should consider that people won’t buy flagship iPhones ‘Made in India’.

[@LoisSharbel]

Love your clear way of efficiently presenting information! Thank you!

[@ngoandrew8]

About the quality fade, it is all depend on what you required the manufacturer to do. Take Apple for example, their quality control is the strictest. Just the Apple printing requirements Manuel’s for Printing house to print their Apple products’ Manuels itself, cost $1 million which all Printer houses needed to purchase and followed before they can work for Apple. This was more than 35 years ago when I visited a printing house in Singapore. That’s why Apple’s products are so consistently good. Only when you pushed suppliers to cut more cost regardless, then it is obvious that some corners had to go.

[@sinogreenhvacmanufacturer]

Totally agree with you. Actually Apple done the same thing, pushing their supply chain lower the cost

[@JKMT]

@@sinogreenhvacmanufacturer like that doesn't happen in US, what happened to that boeing plane that killed all the people on it. i think people say its china, but its just human nature people are greedy and wants to earn more

[@missdee212]

Apples products have never been consistently except before Steve Jobs died

[@1999fxdx]

Easy to blame China. I don’t like their one party communist system but that isn’t really a reason to blame their factories for American product problems.

[@januszo.2180]

Morality fade... woah. That is quite impactful way to call it out.

[@johndoh5182]

You made a deceiving point at about 19:30 by talking about Chinese migrant workers in a context that Apple would need some huge number of migrant workers. This is what I can tell you about migrant workers in Asia. You can get them from ANY country. So if Vietnam has a need for migrant workers, they can get them. So number of bodies are not the issue. Would Apple have to come in and oversee processes and do QA in new factories? Yes of course. I'm not shedding a SINGLE TEAR for Apple. They've made a fortune out of strengthening the CCP and overcharging US consumers.

[@busabayashi]

John Googan is the man to watch, love this channel and hellz yeah I'm a subscriber!

[@anfio137]

Apple is actually very smart. China's supply chain is very fast. Time is a very important cost. In addition to cheap blue-collar workers and low water and electricity costs, China still has advantages in the manufacturing industry

[@HenrikVendelbo]

The made in China has rubbed me the wrong way for many years, however as a hardware make I have come to realise that the world has centers of expertise and there is little a company can do about it, even Apple can not change the fact that in Shenzen you have hundreds of thousands of qualified people. Please let me know if there is another area with equivalent skills. I would love to do manufacturing there

[@nnnnnn3647]

Problem is that it is no longer possible to earn money with workers in the West. Here people pretend to work, and politicians print more and more money to live without work. Unless you're working 12 hours a day when there's a need and peak demand, you're not going to get anywhere. you won't achieve anything. Meanwhile, people are already talking about a 4-day workweek. This is why China is a superpower and will rule the world. They have technical universities and the US has gender studies.

[@paulbriggs3072]

Apple and others have MADE the Chinese experts in this by pouring BILLIONS of dollars there for all kinds of automation and innovation in this to occur THERE instead of HERE! When they say there is not enough engineers in the U.S., YES, because THEY poured all the automation jobs into Communist countries instead of OURS! These greed mongers have NO MORAL COMPASS but their own wealth. But much of the work there is done by machine!

[@samraatbharat6325]

"Thousands of qualified people" are a result of 40 years of various kinds of investment from the foreign countries wanting to exploit cheap labour without any Union and labour law problems, economies of scale and the PRC govt doing their part as a national government, you can replicate this in about 3-4 countries if sustained investment is poured in an relevant FTAs are signed with the "consumer" countries

[@rogerbritus9378]

Germany has them. But you don't want to pay what they earn.

[@bettyivy763]

India

[@Ben.Machine]

I’m listening to this video using AirPods made in Vietnam. Their quality is great, but they took longer than expected to arrive. I guess that’s only expected from a new manufacturing facility.

[@wisenG771]

Vietnam is still communist 😂😂

[@breadnewbie6326]

check Vietnam "country system" and you'll be surprised.

[@macrick]

Why don't you people manufacture yr own airpods? Lol

[@michaelg4158]

Made in VN by a CN company called Luxshare Precision. Search up "luxshare precision apple airpods". Tim Cook personally praised the company's founder in the Fortune Global Forum in 2017.

[@vanomaden]

The conclusions drawn appear to be flawed, as they rest upon the presumption that labor rights are more comprehensively protected in other nations. It is essential to recognize that in any context where there exists the potential for profit generation through the employment of individuals, there is a risk of exploitation being inflicted upon said individuals.

[@matthewnicholas4317]

How did you find all this out about their supply chain? Any links you could share?

[@see_it_through_my_eye]

Currently 7% of the global iPhone supply is made in India and almost all of iPhones in India except Pro models are made in India. Apple wants to ramp up Indian production to 50% of global supply by 2027. This is one of the major reason for jump in iPhone sales in Indian market in the last couple of years. They are able to compete and price aggressively only cause they're not imported.

[@MYYap-qm6lk]

Honesty I don't have much faith in product made in India.

[@archivey-h8e]

Yeah China is going to be in trouble soon with the West moving production to India, Mexico etc. China can't fall back on real estate anymore. CCP got too arrogant.

[@ablam8]

Europe returned all the iphones that were made in India. Poor quality.

[@stanchung69]

They still can't bring back those jobs to USA it seems.

[@Themanwhocantbemoved-zb7py]

India iphone is fake 😂😂😂😂

[@michaeld4861]

This is also a problem within the borders of the US. Many companies caught using child labor just within the last few months in coal mines and slaughter houses with 12 year olds using caustic chemicals to clean "head splitters" while working overnight shifts. Not to mention the other companies using slave labor. Agricultural slave rings using migrant labor (usually visa holders) in GA among other states. In fact a few republican states just passed a bill making under 16 labor legal in coal mines and slaughterhouses with no required age verification. And the under 18 min. wage in the US is $4.25/hr. Not defending China here, just saying the US is no better and using slave labor in the US is no different than using it anywhere else. If a company is using slave labor it's using slave labor. It's equally immoral no matter the location or how they try to hide it.

[@weicailim8120]

i believe it is not fair that you were just saying that the China manufacturers were the only bad guys and their customers were good guys... see, the company where i work in inspects all their imports, including those from well established makers and developed countries, e.g. Japan, UK, blah.. cos it is our responsibility to ensure products quality and safety for our customers.. so in a nutshell, those importers of "cheap" Chinese products either had accepted the quality fade, or preferred to continue cause the profits were too good.. cheers

[@TheStevelargent]

Apple is a joke. I worked at an Apple facility in the early 80s. Most of the people in that plant were temp workers. Only a few were real employees. That is where the "joke" started. I will never own an Apple product.

[@owainjohns2815]

all in pursuit of profit and the empty factories have been making military stuff for about a year now...but Tim's massive yacht looks nice :)

[@DavidRodenas]

Thanks! Very interesting. It makes me think of Spain. They can break international deals for big projects for a lower price, but that is not a problem: 1. When the contract is signed, all parts get their commissions, so they do not care if the price is unrealistically low. 2. When the project becomes over budget, the contract says that de buyer does not have to pay it. 3. Because quantities are great, and often contractors have deals with Spanish governments, the overrun costs are paid with Spanish taxes. So, it is not exactly "slavery", but every Spaniard has forced to pay through taxes (and cuts in basic services) big projects in foreign countries; like the chanel of Panama, or high speed trains in the arabian peninsula.

[@STARSHADOW123456]

Does this has something to do with BAM being such a big company?

[@ianedmonds9191]

This is how End stage capitalism works. Risk is offloaded to the public and profits are held entirely by shareholders. It has to stop. Luv and Peace.

[@DjDmt]

​@@ianedmonds9191 corporate socialism

[@sirtko]

@@ianedmonds9191 🙏🧡🧡🧡✊

[@colincraig5608]

Hmmm, they're currently building a lot of trains and trams for Australia at the moment. After 2 years the trams have cracks in them that the manufacturers blame on driving 'around corners'. Minor changes to a fleet of 60 intercity trains have been quoted at $760m AUD. The original contract price is irrelevant to what will be paid ultimately.

[@BtheLee11]

after playing thousands of hours of games like Anno, Factorio, Civ, I can totally understand the frustration of getting an entire production line set up only for one thing to change last minute and destroy 10s of hours of work. Can't imagine what that's like on a real global scale

[@samriton]

Watching Coogan is enjoyable with tech insights and perspective ❤

[@churblefurbles]

He's repeating project mocking bird talking points, the path to success on us government platforms.

[@palmj5718]

and biased contents.😀

[@BigGerthQuake]

Timmy boy better pray papa musk rolls out those Optimus bots by the end of the decade

[@mydogsbutler]

The reason why China has become the manufacturing capital of the world is because they can produce most things cheaper and faster than anyone else. This is because despite the nomenclature "communist' party of China... China isn't actually communist any more. Long gone are the days of Mao's state control of all industry. China today is a mixed economy like the west. It's main difference is China has an authoritarian single party system. However that's not the real reason why some in the US are hostile towards China. The US does business with plenty of far more totaltarian states than China (See Saudi Arabia). The real reason is nationalism. American nationalists feels threatened by the rise of the Chinese economy. For the first time in living memory the US economy is on the brink of being second in the world. China has already passed America in real world PPP GDP. And in a few years China will pass the US in nominal GDP. IMO the Americans that try to harm the Chinese economy rather than work together to iron out differences are harming America's national interests. China is not Cuba. At this juncture China's economy is so big they can withstand any economic or military card the US can throw at it. They'll even eventually build a native world class semiconductor industry from scratch. In a few decades the Chinese economy, with 1.4 billion people, will be twice and maybe eventually three times the size of the US. At that juncture China will have a larger military, better medicine, and more advanced technology than any country in the world. it will be the dominating superpower supplanting the US. Poisoning relations for the sake of nationalism would lead to lower quality of life in the US. It would be like Canada one day destroying relations with the US for the sake of Canadian nationalism. It would harm Canadian interests more than American..

[@borissergijevic7357]

Poor Steve, if only he knew Chinese were forced to work overtime, he would stop it immediately.

[@zeljkop9923]

Razmisljaju samo o profitu!

[@borissergijevic7357]

@@zeljkop9923 nadam se da razumes moj sarkazam :) Steve je gurao ljude da rade u 3 smene 80tih dok je jos bio prvi CEO Appla. Sigurno da ga je bolelo uvo za ljude. Posle se promenio, ali on bi svakako pohvalio Kineze za overwork ;)

[@zeljkop9923]

@@borissergijevic7357 naravno :) znam celu pricu

[@truthboom]

work overtime to produced faulty product that is deliberately lifespan shorten to let consumer buy again when it break down

[@qwill8254]

They did that to Motorola, first .... Lock , stock ...... It was written in their contacts

[@joseph7858]

thank you very much for your deep research and opinion on topic. 😊

[@marius-cristianplesca1983]

I would add to what was said in relation to the decrease in production costs that everywhere in the capitalist world the management staff of companies benefit from extremely disproportionate incomes compared to the workers, this without taking into account the substantial premiums they receive and benefits such as a personal car , settlement of expenses, medical insurance at top companies, shares in the company, etc., all this against the background of the decrease in production costs...

[@Zidbits]

Expected an in-depth critique of Apple and China and got a fluff piece that glossed over many of the human rights issues and labor issues (like child labor, didn't hear that once mentioned despite foxconn utilizing child labor).

[@CarlWithACamera]

China is not ‘Apple’s manufacturer.’ China is ‘the world’s manufacturer.’ Before you criticize Apple maybe go look at conditions in the factories that manufacture toaster ovens, and the tens of thousands of other products sold in Walmart and every other retailer on earth. Apple’s profit margins allowed it to push to double workers wages twice in the last ten years, allowed Apple to influence working conditions and allowed Apple to impose more environmentally friendly manufacturing methods along with powering more of its supply chain with renewable energy. But go ahead and take the easy pot shots at the company doing the most to affect positive change, because we all know, John, that you carry an iPhone and your videos are edited on Macs.

[@Bitcoin1y]

Market capitalization of Apple (AAPL) Market cap: $2.321 Trillion As of February 2023 Apple has a market cap of $2.321 Trillion. This makes Apple the world's most valuable company

[@notanymore9471]

Uhhh guess you don’t know about conditions in Foxconn plants.

[@pornets]

​@@notanymore9471 their factories is MUCH better compare to other china factories.. still lesser evil than other evil 😂😂

[@miojin_raiz]

so are we calling slavery "morality fade" now?

[@ACE-kb8uu]

Dude is worried about being demonetized.

[@Americanpatriot723]

The top 10 companies from 30 years ago are not the top 10 companies now. 20-30 years the market leaders change. The SP500 captures a broader market and promotes start-up stocks from the Russel and NATURALLY (without liquidation or selling) builds a position on it overtime like what happened to TESLA. Just like an ordinary portfolio, the SP500 would tend to be heaviest on the best performing stocks as long as u don't sell it. This is why apple is 7% of the index because overtime it became more valuable. The SP500 is a self-correcting portfolio. Facebook did went down, which means it's portfolio impact dwindles throughout time to a point it becomes so small we won't notice it changing or affecting the portfolio too much.

[@IAMBETTERTHANYYOU]

I have been telling myself for years to do the needful: open a brokerage account, buy ETFs or whatever, just play it safe. My past five or six New Year's resolutions have included this. Yet I just can't make myself do it, for some reason. I think it's time to admit that I'll never be a smart, thrifty, DIY investor, like all millennials are supposed to be.

[@MIchaelGuzman737]

@@IAMBETTERTHANYYOU There are several reasons I have been investing under the counsel of an Advisor which are someone who sets asset allocation that fits my tolerance and risk capacity, investment horizon, present and future goals. 'LISA ELLEN SHAW"' has provided all that and I don’t want to go into ROI on a public space like KZbin.

[@IAMBETTERTHANYYOU]

@@MIchaelGuzman737 There is this podcast i was listening to and it said something venturing within your tolerance and risk capacity, see you mention it again got to me. How can i reach this Financial Advisor you are working with?

[@MIchaelGuzman737]

Look her up online; she has a website where you can contact her and properly get in touch with her to learn more.

[@blitzegron4848]

You are assuming Apple (and others) even cares or at least cares when no one knows it's happening.

[@blacksheepshepherd]

And why RBA council did not come after Apple Inc, Foxconn & Pegatron?

[@jagdishahire-zo1sf]

Hey John love's yours content l would like to add some point here; JP Morgan analysts said Apple will move 5% of global iPhone 14 production to India by late 2022, and expand its manufacturing capacity in the country to produce 25% of all iPhones by 2025. ample labor resources and competitive labor costs,” make India a desirable location

[@jonathanvince8173]

India has been working on this for a long time but even they have restrictions on what they can do. Plus the only reason for going to India is not better it is about costs they are 50 cents cheaper than China paying work force. But India has real issues of building construction as well as consistent power. India is a great country well worth visiting.

[@AmericatheBeautiful-p4z]

@@jonathanvince8173 In'dia's deeply endemic caste-hate and misogyny makes any large manufacturing process incompatible with production quality and output. It will become a hardware version of In'dia Silicon Valley bloatware: an upgrade a month. US Apple stores will have lines out into the parking lot for i-Phone failure servicing.

[@ksoma13]

I will never ever use this bs product. Its really a pain to know that each Iphone contains blood of an enslaved Chinese worker.

[@kkchew18]

I am truly disappointed that you believed this "enslaved labour" story. Wake up. The factories that build Apple products are owned by Taiwanese owned companies that operate in China.

[@BubblegumCrash332]

I was waiting for the answer to this question. If relations with the US and China go cold and a new cold war begins ( it looks more likely everyday) what happens to Apple ?

[@sahilsharma88]

I understand US Govt would give a heads-up to Apple. At this point Apple is too big to fail. So they should have enough time to plan a relocation. However, the capital investment in China, as Coogan mentioned, is significant. But, Apple is sitting on billions of dollars in cash.

[@fabricefils-aime7142]

It won't be a big problem. Apple will lose money but it will relocate in Vietnam or China. They actually are moving there at a fast rate

[@kagamitaiga7055]

@@fabricefils-aime7142 also don't forget chinese 😅buyer 100% CCP gonna ban Apple if they move their product from their to bring their mobile product

[@breadnewbie6326]

apple will stay in china for cheap manufacturing cost and biggest market (china). moving away will make chinese buyer move to Huawei. also, nobody mention that Foxconn is taiwanese company. and Vietnam is having "the same government system" as china.

[@kevinwu-ln4kz]

bushit about quality fade , the device you used to make this video is probably made in China

[@MrTrillionaire365]

Please, what does it mean that before Apple signs in any supplier, it's engineers have to sign off the supplier's organization? Thanks 👍

[@RoryK]

Great video except for one little detail.. you stated every iPhone uses the latest hardware components, but apple is notorious for using old hardware optimized with super efficient software. Granted their security is top-notch, they've mastered 3D facial scanning and their camera software is pretty incredible but the physical components in the phone are rarely the latest and greatest.. never have been. Yes, when they launch a product it's more refined than Samsung for example, but many consumers aren't willing to wait 4 years from when something is invented while Apple works out the colors and profit margin. Remember when Apple used to justify their old-ass camera sensor by saying people don't care about resolution, just how the photo looks. Maybe if your camera has 10 times optical zoom but clearly they got on board the resolution train

[@hongkongpong5588]

Isn't d U S. exploiting the poorer countries cheap labour for more profits? Even TSMC talents in d U S. r exploited n given secondary preferences for d same type of jobs..

[@paulsi1234]

So if you don’t want Apples products, buy something else, and whatever hardware Apple use won’t affect you!

[@308_Negra_Arroyo_Lane]

LoL! You have absolutely no understanding of how Foxconn of Taiwan, or any of the other component manufacturers, which are also from Taiwan, works.

[@kthwkr]

When our plant was created in China many of our people went over there and interacted with the employees that worked on the manufacturing line. Mostly young women that came from small towns all over China. A small town in China frequently has 1 million residents. So there were many ladies that migrated to these factories. These ladies lived in dormitories adjacent to the factory. They were very similar to the dorms that college students lived in in the 1950's US. But still not quite as nice. Lights were out at 8PM. A single hall light for the halls bathroom at the end of the hall. Food was served in the buildings dining hall.

[@weishi9804]

many Taiwan company operate on old style military rules.

[@lennartwolf3571]

China didn´t trick Apple. Apple was fully aware of the situation and the strategic geopolitical implications and decided anyway to manufacture in china.

[@NativeVsColonial]

Yes, but now Apple is forced to manufacture from China, because over the time China have learned the technology of Apple, and now if Apple tries to leave China, sure China will tweak and release iBanana the next day. China is great at stealing technology. They have previously done it with Petrol, Diesel, Electric Cars, and many other, but the case of software based ecosystem like Apple it is a bit tricky for the Chinese too, and hence China is also at the negotiating table with Apple.

[@bobgreene2892]

[At 1:07] Your image is mislabeled. That is an E-Mac, not an I-Mac.

[@HealthCuration]

We needed a UV printer. The American printer was $60,000, but the Chicon was $20,000. So we rolled the dice. Big Mistake! The Chicon was junk and we got screwed! I will never EVER do business with these people ever again! You get what you pay for.

[@dominikfoltz2012]

Why not state that Foxconn is a Taiwanese company?

[@1emmanuelnavarro]

Isn’t that Qualcomm

[@evilleader1991]

All asian are the same, Korean factory is Chinese, foxconn is Chinese because Taiwan belongs to china

[@timsuniverse9364]

@@1emmanuelnavarro Qualcomm is an American company based in San Diego, CA. They don't manufacture anything They design the chips used in all mobile phones and also collects huge patent royalties from all mobile phone manufacturers.

[@VishnuKamath]

Apple should start manufacturing in US/India/Vietnam. Apple can get more customers in Asia by reducing some costs. All business school teach us never but all your eggs in one basket. But every western corporate did just that.

[@Bitcoin1y]

Market capitalization of Apple (AAPL) Market cap: $2.321 Trillion As of February 2023 Apple has a market cap of $2.321 Trillion. This makes Apple the world's most valuable company

[@fooksengloke3625]

Cost did not reduce. In fact it expanded.

[@stvdmc2011]

Yes like apple almost bankrupt to one of the most valuable company.

[@archivey-h8e]

They are slowly. Apple use Taiwan, China and India. Soon they want it to be Taiwan and India only.

[@519stream3]

This is the perfect example of freefom of lying.

[@Daoland-Everywhere]

Chinese companies also work with sucontractors who are not tijd in to the original contract, thus the subcontracters are not tied to the same rules and limitations of the original contract, using the aquired skills to sell their new products to your competition too. Like what happened to the antennas in cellphones

[@globalcitizen4421]

isn't Foxonn Taiwanese company?

[@1emmanuelnavarro]

That’s Qualcomm

[@timsuniverse9364]

Foxconn is a Taiwanese company and major electronics manufacturer. Qualcomm is an American company based in San Diego, CA. They don't manufacture anything. They design the chips used in all mobile phones and also collects huge patent royalties from all mobile phone manufacturers.

[@mokisan]

Great video. Although you did dumb down and played down scertain topics, but I do understand why you do that. It's to keep the video succinct and more approachable. Also linked to sources you used would be nice.

[@pauldannelachica2388]

Money and greed

[@derbezacesanchez3779]

Made (assembled/manufactured) in China for Americans and or the world. Made in America (U.S.A.) for Americans and the world. Thing that brings up manufacturing costs are environmental protection laws (most Americans do not want to live downwind from manufacturing plants), real estate needed to construct large manufacturing plants, poor labor wages gap compared to executive wages

[@joeyocom5087]

Blood Phones. I won't have an Apple phone, no way in hell.

[@Melpheos1er]

In France we have a saying which is : Buy chinese, buy twice

[@dingo1yongo]

It's amusing to see Americans so "concerned" about the Chinese (while threatening war with the country), meanwhile the meat packing industry and so many others use practices that are as exploitative as the ones they complain about. Wages are so low that many salaried people can't afford accomodation but no one seems to care.

[@macharlem]

I don’t know the answer to the complicated US China relations problems. But clearly War is the worse case scenario and men don’t seem to know that. I s there a chance US companies like Apple & Tesla investing in China helps avoid War as part of the solution? Has/Have man/men ever avoided War? Is perfection or War the only choices? Why don’t you mention or factor this in to your analysis? Do you make enough money from KZbin for such high quality videos? If not could you disclose your funding sources? ☮️✌️

[@addison2447]

from the edit of the video. we can already identify many points this video is to feed brain-washed western anti-China audience. In the end of the day 99% of people are slaves to money. no matter which political system.

[@sndchamp9949]

I work for a small company. We have maybe 7 people in the United States but a warehouse and factory in China with dozens

[@derikdang8829]

Excellent analyzing points John. I wonder what will happen in China manufacture in the near future....

[@noumankhannomi5964]

To my understanding this just proves how much we need an edged as an investors because playing the market like everyone else just isn't good enough. During a raging bull market, all other investors purchase at a premium, Investors who purchase during weak markets have three characteristics: company knowledge, conviction, and a long-term outlook. I've been quite ensured about investing in this current market and at the same timeI feel it's the best time to get started on the market, what are your thoughts?!

[@andrew3l]

​@David Richard Wow! I invest and buy cryptocurrencies but Mostly waiting for the rise to sell. This is a great opportunity to start trading my investments to start earning right away

[@vinedavid3413]

​@Alana Maria i never thought I was going to benefit from any Bitcoin investment. Apparently it’s $3200. Excluding my initial investment. I’m really blessed😲

[@willamjoshua4141]

​@Malachi Vance she pretty good tho, I was pleased enough after watching the reviews on her profile, she’s the best of her kind, she shared 3 keys mitigation steps to make the network robust

[@jennakatie2974]

​@Chris Andrew Greetings from Florida , I have read a lots of reviews about her in many platforms she must be a legit woman

[@wanyejordan8693]

@@jennakatie2974 she helped me recover all my funds I lost trying to trade myself in crypto trading

[@yoked1234]

Every time there’s been a hiccup Apple doubles down on China. iPhones will never be built in America but we’d be much better off with production in Mexico/South America/Vietnam. The problem is the whole supply chain is based in the Asian pacific but you gotta start somewhere.

[@eish3291]

Which businessman wants to spend billions building a second complete supply chain which also needs dedicated worker,s at low wages compared to anywhere else. If all these conditions existed elsewhere don't you think companies would have left China long ago. Businessman have crunched the numbers and China is still the place to be. Just look where all the German companies are still going to.

[@eish3291]

Talk is easy, doing is more difficult.

[@arftejano2284]

I think the biggest thing to notice with all of this is that Apple critics always cite the CCP’s human rights violations, but no one mentions the billions of dollars worth of manufacturing that is being taken from the American economy and jobs taken from American workers. The moral argument of the media revolves around Apple’s moral obligation to the people of China and not the people and prosperity of their own country. Very eye opening to the priorities of the media and loudest voices in America.

[@bruxi78230]

Same old short sighted argument that people have made for years. Apple spends way more on US employment than virtually any other company and way more than the amount invested in China. All of their designers, AI experts, programmers, retail employees of 273 Apple stores, people running the online operation, most of general management, Apple Studios, Apple Music and on and on. They also create millions of indirect jobs through the App Store, glass used in iPhones is from Tennessee, SoCs (processors) will soon be fabbed in Arizona and many other component products are from US companies. Frankly the Chinese are way more advanced at manufacturing, their government has spend mega-bucks (yuan?) creating a generation of industrial engineers that are the envy of the world. Also important to note that even though Apple HQ is in California, they sell a higher percentage of their products outside the US. In 2022 they sold 74 billion dollars worth of products in China which is 70% up from the amount sold in 2020.

[@kissxjim]

Lol what? Corporations have no obligation to help the economy of any nation. Majority of Apple's revenue isn't even from America. But it's cool that you care about the economy more than massive-scale forced labor

[@liveinsea1]

As a customer, would you like a $800 iphone made in china or a $3000 one made in US? the time you prefer made in US one, jobs could come back home. So the US customer dont care human rights, dont care american economy and jobs, but you ask Apple to do that? its fun to blame china for everything, but when americans' real income has not increased for decades (inflation adjusted), the living standard seems to be improving, have you thought the reason behind it? made in china makes everything much cheaper for you to enjoy. at the same time, the trade between china and US benefit both sides with almost equal profits, but the distribution of the profits in US is troublesome, and it goes to the rich. And tax cut on the rich and tax revenue spend on the endless wars is the reason why american workers suffer. you know china just uses a fraction of the US spendings on the Afghanistan war to build the whole highspeed railway system.

[@johnsonofthunder1026]

regarding quality fade you only have to be a regular customer at your local pizza shops , when you first become a customer of a particular shop all your pizzas are awesome with heaps of topping , after a while familiarity breeds contempt and the quality of your pizza drops , that is when it is time to jump ship and get pizza elsewhere ,lol. pity the people who have no choice of pizza shop supply , roflmao

[@ThaidUp]

You like myself have underestimated the fall of China. The world is diversifying manufacturing whereas it will be split to other SE Asia locations and Mexico. Vietnam has already taken in 1 million Chinese workers on 1 year Visas to augment their workforce. Additionally industrial robotics is scaling up. It will probably take another 7 years for this migration to happen but it will happen and the Chinese Premier is the root cause do to his recent draconian policies

[@petersutherland1451]

Thanks for preparing your video John. It was really interesting to understand how the dynamics work between US companies and Chinese manufacturers and the difference between quality fade and morality fade. It seems to be the case that the manufacturers are more to blame for the morality fade than Apple, but Apple still gets blamed for it. Should they have reasonably foreseen that happening? It's such a massive enterprise, how do you turn it around? It's like a giant cargo ship with its own unstoppable momentum. One point to cross check is the 'best seller' of all time boast. Guiness Book of records estimates the Bible has sold over 5 billion copies during 1500 years, so the Iphone has some catching up to do with a 'mere' 2 billion! Mind blowing numbers on both counts.

[@kimobrien.]

Morality fade well that what capitalism is all about. Morality has completely faded out of the US Gov't replaced with total ownership of the corporate elite with their demands for unlimited profits. Warren Buffet the Billionare brags about paying less taxes than his secretary wants to run longer trains until the derail with a one man crew with no sick time.

[@volts_n_bolts]

Did you come to God-splain Apple's behavior? Being you referenced bible sales, it sure seems that way. It was mentioned in the video that Apple admits being very meticulously involved from start to finish, you're darn right they knew about this the whole time. Also, what's not in the Guinness Book of Records is that Abrahamic religions are the largest producer of cults in history. Just thought I would make sure you understood where those record bible sales comes from. 🤣🤣🤣🤣

[@odomangulati7079]

BS. So India has the infrastructure to help Samsung build 120 Million Smart phones in a year, but not for Apple ? 🤣🤣 India produces 1.5 Million Engineers every year and 1 million other university graduates and 1 million technical workers ever year, but does not have enough skilled manpower for Apple ? US which is 3 times India's size has 6.8 million km of road and India 3 time smaller has 6.7 million km of road. India has 128 Thousand km of Railway lines with 90% of them electrified compared to 155 Thousand km of railway line in china with 60% electrification. India has 5G network over 95% area with 100% coverage by December 2023, in the next 3 months. India now has the second largest 5G network in the world China OTOH has 90% area coverage. So India has no "Infrastructure" to support APPLE ? LOL at the ignorant comment. Apple is in bed with CPC which is why it is sabotaging US govt. dictate to abandone china. Its as simple as that.

[@lld4ae]

You should give more attention to Vietnam: A good friend from high school (25 years ago😅) who is working for the manufacturing unit of a globally operating enterprise for a premium-priced project told me that he is extraordinarily impressed by the Vietnam manufacturers and (I quote by my remembrance) the agile abilities of the country and the people. He made 3 points: 1. The Vietnamese engineers, developers, and even workers are brutally young, well-educated, and have a solid working mentality. (he joked: the exact opposite of the German location.😂 By the way, does somebody knows what's on with Germany for the last time?) 2. The Vietnams are stealing a lot of manufacturing know-how from the Chinese even faster than the Indians, in an equivalent more evolved procedure as the Chinese accomplished in the last 30 years. He sees a massive advantage in getting complex, high-quality manufacturing up quickly. And he sees low-priced production more as an Indian specialty. Long story short: his thesis for the near future is: for low-price products to go to India, and if high quality is required, go to Vietnam. 3. Vietnam does not position itself against the petrodollar and the US as China and India have done with Russia since the beginning of the 🇺🇦 conflict.

[@maddwhissp7092]

Vietnåm ( another communist nation) history repeats itself 😅

[@lilgarbagedisposal9141]

He actually mentions Vietnam in the video. Seems like you didn’t watch it.

[@lld4ae]

@@lilgarbagedisposal9141 Your right. I don't watch the ending minutes before writing the beginning of my comment and didn't change it. Changed it now. Thx

[@lld4ae]

@@maddwhissp7092 To describe Vietnam as a communist country isn't entirely correct anymore. And it hasn't the capabilities to compete with the US in a similar way to China. So the best way to stay in the governmental force for the communist party is to increase the wealth of Vietnam's middle class. And besides, I don't think that there is a fundamental law of the universe that increasing people's wealth, even in a country shaped by socialism in the near history, must end like current China. (I know that China didn't end in terms of history...) Throughout history, all humans have wanted to be free and independent, and the freer they were, the more significant their increase in prosperity. So I would argue that all kinds of bondage and dictatorships can only be transitory, so I don't understand why increasing wealth in any country should be a bad thing? And If it goes wrong, they produce for another 20 years, and then we have adequately automated factories to build them in our western high-wage countries. Long story short, I don’t think there will be a second China, and strengthening Vietnam has the ability to become a much bigger problem for China than for NATO.

[@josepharrr3712]

@@lld4ae many said the same thing with china in the 80's and look now. Vietnam is a us friend because it's weak and they need to copy western products like china did in the 80's and 90's to become a us enemy and ban/censor thousand of journalists, fårmêrs in vietnam so far such as Tran Huynh Duy Thuc , Pham Chi Dung , Nguyen Tuong Thuy , Pham Chi Thanh , Can Thi Theu , Le Dinh Luong , Truong Minh Duc , Nguyen Trung Ton , Pham Van Troi , Hoang Duc Binh , Tran Anh Kim , Pham Van Diep and the GREEN environmentalist Nguy Thi Khanh and the former President Nguyen Xuan Phuc over corruption charges in Vietnåm

[@harrowgateguy]

Don’t forget about the nets they had to install around the Apple factories in China to catch all the workers that were regularly jumping off the roof to commit suicide.

[@jamesfiegel9675]

The seams on the bottom cover on my 2022 Air is not as good as on the 2017 Air I owned quality is dropping...parts or labor in China?

[@DevlogBill]

Very educational, I had no idea Apple invested all their eggs into one basket. Sounds like Apple's strength being China is turning out to also be their greatest weakness. I wonder how this story will evolve within the next 5 years.

[@arnoldstrong5553]

I think that is just how things work in big businesses. The same way they improve their products all the time, they look for ways to reduce the costs, produce more and get every last cent of profits possible. At the end of the day, for a company like apple, profits are the only reason for existing. I would bet Apple will leave China but mostly due to the political conflict between china and the west.

[@xsparik]

This Ladies and Gents is what Modern Day Western Colonialism and Slavery Looks Like. This will probably be taught as a history lesson someday for future humans.

[@peterhurd9667]

Excellent analysis. I was 10 minutes in and thinking; well what about exploitation, forays into Vietnam and India, Apple's complicity and the stifling of dissent and so on...but you covered all the bases.

[@mohabiraq1]

How? i see a fanboy.

[@mlegarth]

Love your content. But please get your stats straight. Samsung had sold 2bn galaxy phones back in early 2019 and over a billion since (verified sources) making Samsung Galaxy the more sold product. Unless of course for some reason you consider iPhones one product but don't do the same for Galaxies.

[@shre6619]

Yeah, Nokia 1100 (in 2003) model alone sold 250 millions. the 1110 model (in 2005) model sold 247 millions units. Then, in smartphone, its iphone 6/6+ with 222 million. Source: Wiki

[@christopherx2216]

Just asking, how can I find the references about the toxic chemistry paper cups from Chinese manufacturer?

[@othmanhassanmajid8192]

Huawei shares profits with its employees❤😊

[@gingerbladebl]

Many people don’t realise it wasn’t manufacturing part that made Apple reluctant to step out of China, it was actually the consumer part that contributed massive chunks of their sales which made by their Chinese loyal consumers! To admit this would made deeper embarrassment to US government though, so they sticked to the cliche manufacturing reason 😂

[@virtualspaceoft3501]

Funny thing all Apple products are so expensive that they can easily be produced in United States but still they don't. This could make the price more reasonable if they would say "' We are paying for American industry and it is the cost". Than majority wont say anything about the price tag. But here we are... One day their branding will fail (Coca Cola and Mac Donald's are different story but tech cannot copy those business models..)

[@h9hkk6155]

Yup same made in China, and same specks as an Android, yet 4-6x more expensive 🫰 maybe it's made in Switzerland?))))

[@inferno3080]

Nobody could afford the iPhone.. if it’s was built in the us, Make it in China it’s cheaper or give tax incentives.

[@justlisten82]

If Apple makes a car will it have Windows?

[@thierrymadvig5892]

:)

[@savagepro9060]

Windows makes cars and carry Apples to the dump!

[@TheOriginalJAX]

It's A Trap!

[@NativeVsColonial]

Yes, Apple is forced to stay in China, because by now China have the blueprints of Apple, if Apple tries to leave China, sure China will tweak and release iBanana the next day. China is great at stealing technology. They have previously done it with Petrol, Diesel, and Electric Cars, but the case of software based ecosystem of Apple is a bit tricky, and hence they are also at the negotiating table with Apple.

[@magicgoku]

Amazing work as always John!