Why It Will Be Hard For Apple To Reduce Its Dependence On China [Forbes]
Toyota Motor Corporation (TM)
US:NYSE Investor Relations:
toyota-global.com/investors
Company Research
Source: Forbes
Apple’s recent reported difficulties establishing a supply chain in India show just how hard it is for companies to reduce their dependence on China at a time when the COVID-19 contagion and the U.S.-China trade war have made supplier diversification an important strategic question. Much has been written about the challenges facing Pegatron have pushed into India recently told the Nikkei Asian Review Yet China remains core to Apple’s production, as it is to many electronics manufacturers. What makes China so attractive for the electronics industry, and what are the important considerations if a company is going to relocate manufacturing to India, Viet Nam, Indonesia, or some other low-cost region? Large, low cost, flexible labor force What made China so attractive in the 1990s and early 2000s was a seemingly limitless supply of low-cost semiskilled labor. In the late 1990s factory direct labor often cost (fully burdened including social welfare benefits) less than 50 cents per hour, a
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