This is likely the start of how global manufacturing works. That is, in about 20 years, when India and Vietnam no longer have very cheap labor and no longer have a need for large scale manufacturing, these companies are going to find other countries. Then, more countries, And on and on.
Depends on what is made. Labor is a big component of things like clothing. When you make computer chips or machinery, its actually the price of equipment, technicians, and electricity that matter a lot more. Look at a car factory today, a newer one--many robots, few workers. To prove my theory, find the lowest cost country in terms of dollars per hour--how many chips, computers, cars, steel are they making? China's advantage was never only in cheap labor--it was cheap labor, cheap electricity, and tons of infrastructure investment--airports, ports, railways, highways, and quick import/export.
Two main reasons, 1) their cheap labor is no more 2) everyone expected a globalized China to be more transparent and liberal but the exact opposite is happening
@@again5162 It is more altruistic. China actually does help alot. It is just not reported by western media... and debt trap? Loans from China come at 2-3% interest rate.. western loans come at 12-25% interest rate. Want to beat China.. offer a better deal.
@@nickl5658 Yes, China is honestly the most competitive and that's why countries choose China. Debt Trap diplomacy is fake, it's just propaganda on West's side.
SIR MY INDIA IS THE REAL SUPERPOWER 🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN CHINA PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳
why they have more factories. i have a razer mouse thats made in China. but the exact same mouse is also made in Vietnam. nothing surprising about any of this
@@Rusty_Gold85 and here we have a nother sinophobe. 90% of your stuff in your house or that you buy is made in china. you buy it because you think its good quality right? so stop crying about china.
It’s good to diversify productivity stations. I think it’s a forward thinking mentality. Hopefully prices can still remain cheap and inflation is not a major problem.
It might not be cheap iPhone anymore, since ship outside of China a single screw might cause $1 instead of $.001 within China. Just a example, there is no country is big as China can has everything/supply chains that cover everything. So the shipping cost will go up add to the material costs. iPhone will sell more expensive over time. Time will tell my hypothesis
Yessir, let the iPhone be cheaper and let the labor die of hunger from cheap and unequal pay from a trillion dollar company, YAY gotta have the iPhone at all cost
@@jie1379 I have been paying more for ‘not made in China’ for years. Means I can sleep easy knowing I don’t support slavery, organ harvesting, Communism in general.
Samsung is the largest investors in Vietnam. Vietnam politics is stable and reliable compare to China. Many young Vietnamese are learning Koreans and Japanese because they see a stronger business relationship in the future.
Are you gathering these "facts" from western media and dump it in here with such confidence as if you know better than Vietnamese? Vietnam is not stable, it's corrupt. Just because vietnamese like k-pop it does not mean vietnamese are close culturally with Korea. In Vietnam War, Korea deployed most military after US, brutally killing civilians and soldiers alike. We are still waiting for an official apology. The number of likes on your comment come purely from ignorance of people who want to believe that the world turns against China.
Due to the strong demand to Chinese local brands, almost nobody buying Samsung in China, sales volume of Samsung phones is really low, there's no reason for it to stay in China.
India has a very, very protectionist regime in place and it has the habit of harassing foreign companies when they run afoul of Indian sensitivities. They usually harass those companies (examples being Nokia, Xiaomi, OPPO all of which with substantial investments there) with tax probes or FX repatriation matters. That's besides terrible red tape plus lousy logistics and efficiency. Vietnam is somewhat better due in part of its proximity to supply chains in Guangdong, China where many of the original factories were based to start with.
Yes, neutral in terms of _they are not enemies._ For over a decade, China has been at war with the USA (and much of the rest of the world) in every way except militarily.
That is a smart move, since the trade war, people in China are starting to support their local brands, both Samsung and Apple has been losing their market share in China, so it is reasonable for these 2 companies to move production else where and just focus selling their products on western markets.
I once saw a survey on Chinese consumer preferences. Its shows that other than electronics, Chinese prefer western brands, especially vehicles and clothing.
@@sengwesetogile6054 German cars are very popular in the Chinese market, but in recent years, Chinese brands have caught up. A significant portion of the best-selling cars in the Chinese market this year are from domestic brands, with the BYD Qin Plus being the sales champion.
When they were told to bring their manufacturing to America they said it was impossible because of "highly specialized and delicate supply chains in China". Why can they easily relocate to other Asian nations then....?
I wonder when Africa will be the manufacturing hub of the world. In the 2050's? The 2070's? Even with automation probably eventually negating geographic differences, Africa seems like a potential huge focal point for future manufacturing industries.
Can't imagine that African countries do not come up during these meetings when deciding, I just wish the countries had leaders that are serious about it's potential and worked towards progress and growth.
Africa is like 54 different countries with different currencies, laws etc. It's the exact opposite of what you get with a huge country like India & China.
As you say, automation may mean manufacturing is brought back to the West. Double or trebling productivity with AI and robotics will outweigh any gains made by cheaper employees.
Too unstable and too much corruption. Well, I'm not saying all of African countries but majority and even if there is no domestic instability in some, just having an unstable neighboring country is a turn off.
While India's contribution has increased it still falls really short in terms of manufacturing the important components such as chips and that is a problem that these companies and the Indian govt need to address in order to exploit the cheap Indian labor market. 6:32
foxconn is making two very big components manufacturing plants in india. in next 3-5 years, we can reach level of china in terms of value addition. vietnam lags in value addition. they are just focusing on assembling.
I hope they are also developing recycling capabilities at these locations. If not, that should be a priority and would provide additional diversification.
@@RealMattHaney They don't make that, as it's much lower margin. Lowering your profit margin isn't the sort of diversification anyone wants to invest in.
This is a very good video. It shows why companies must diversify in order to survive, while not pulling out . Its not really human rights but governments policies, high taxes and labor shortages are just a few reasons why companies must source from many other places and find the possible route to lower costs and earn a profit. Samsung and Apple made some smart choices
It’s never about human rights. It’s always about government stability and how they can ensure there will be no strikes every 2 months. Very difficult to see this in India. Nam, maybe more possible.
@@suryaprasanth9105 If you mean Modi always and do everything he says, then yes, the Indian government is stable. Modi is simply playing the same game Xi in China is doing, promoting nationalism. It definitely is a big market, but possibly will be the next country to into conflicts with Western democratic principles.
Companies move from China to Vietnam facing infrastructure issue. VN can't support large scale of manufactures, frequent power outage causing many interruption, slow down production output. It is a headache for them.
@@esparian4775 stoping crying like a child, International countries recognize only areas which india controls, if you want to change that then tell your leader to recover those lands
@@FocusOnHind again who are you? Do YOU know my country's history? You have zero rights to interfere in other nations internal affairs. Taiwan is showed to be part of China but not Kashmir and Ladakh as part of India. IF you are Indian, then please go to Pakistan and live there happily
@@esparian4775none of the international map show taiwan as chinese province. International organisations wont show every countries claimed territories, we can show it for ourself but can't force others to show. If we go by claims then according to russia ukraine is part of it so does india recognize that claim??
The best way to secure component is having facilities closer to home. Economically speaking, this isn't the best deal for those larges companies. China is and will remain one of the biggest manufacturer for Apple and Samsung, even though they chose to move their facilities from China, needed components are still manufactured there. Moreover, logistic wise China has a big advantage if you compare to India or Vietnam, China has airports, seaports, roads. It is very convinient to order from China and Chinese workers are very used to ship goods across the world. India and Vietnam need to catch up on this level. Sourcing from these countries will be another level (I work in the supply chain area and trust me when I have to order goods from China and India, it is not the same) It would be interesting to follow how this will grow.
Also, the Taiwan company Foxcon moved there manufacturer in India. The company profits cannot leave India. That why Apple are still hesitate opening the manufacturing in India. 😂
great job dragging out a headline into a full blown 6 minute, while sounding serious. BSing those essays in college was spot-on preparation for this job.
What the WSJ is not telling you is that labour is no longer cheap in China so semiconductor manufacturers have moved to cheaper countries like India. China is transitioning to a middle class domestic economy so they don't need to export as much.
China is becoming incredibly hostile to the west. That is the absolute biggest reason because having a presence in China gives them access to the largest market.
One major problem with outsourcing is security. Imagine what would happen if war broke out between America and China and most of America’s industry is in China.
So basically American manufacturers need to exit China fast because they will tank this global economy down to the ground. Mexico Latin America Africa would be a better solution
Those go first! Remember the U.S. pull out in Afghanistan... EVERYONE says it was bad, they left equipment blah blah blah. Meanwhile, in reality, THE TALIBAN HAS NOTHING, and no one even speaks on it, lol.
Funny thing is that a lot of the factory in Vietnam are owned by the Chinese. Its their strategy for the trade war that's taking place right now. WSJ got to do a better job for getting the truth to the public. Any manufacturer in South East Asia will understand what I'm saying. 😉
The video should have also mentioned that India has been increasing tariffs on cellphone and electronics imports, thereby encouraging companies to set up local production to keep and grow that market.
Labour costs are also going up rapidly in China. Most facilities in Vietnam are actually owned by Chinese companies. Future manufacturing cheap goods will all be made in south east Asia for cheaper labour
Southeast Asian countries have all suffered a history of colonial invasion. Although some Southeast Asian countries have conflicts with China, when Western colonialism deployed military forces to East Asia, they knew very well that the only option left was China (Russia) The strength is far inferior to that of China), and no Southeast Asian country is willing to let Western colonists dominate its own national destiny and future.
Samsung smart phones have no market in China anymore , so they moved out all their phones factories . Apple will maintain a big portion of their production facilities in China if they still want to sell their phones in China .
in 2015, South Korea was forced by USA to setup American air defence system against North Korean Nuke Missiles. China didn't like that, and retaliated against South Korea, and started boycott against South Korean products, and companies. That's why South Korean companies left China and moved their faciliites to other countries. China was afraid of USA, so they could not retaliate against USA, and only able to bully South Korea. what a cowardly thing to do.
@@davidlazarus67 : except that Apple has no plan or desire to move -- 85% of more of their manufacturing will remain in China for at least next 10 years.
Now 7 months later, Vietnam manufacturing went bust. Increasing labor cost, increasing electricity cost, increasing water cost, and waiting for parts from China. People need to understand that manufacturing is not just relocating an "assembly plant" from one country to another. It is also the whole manufacturing ecosystem and the stable environment. China has all that. Covid is a "wrench dropped on the hyper smooth operation of the supply chain" and it caused great harm to global supply chain. but as China opens up more, and the trade war is receding, business will remain in China as it is the "REAL DEAL" in both manufacturing and the consumption. You will see some increases in Vietnam manufacturing and Mexico manufacturing. But what are we kidding? They are just assembling Chinese parts, or just simply putting "Made in Vietnam" or "Made in Mexico" stamps on before shipping to USA.
Hopefully Samsung and Apple would consider Malaysia as the best destination for their semiconductor manufacturing. Malaysia has a lot of expertise in the industry with the industry already been in the country for over 50 years
I have been to Malaysia. It was a great nation to travel & stay for a period of time, but not a nation to produce goods in. People are laidback there, just compare Malaysian & Singaporean, Malaysian be like taking holidays every day.
@@karlk7070 to be honest I think that is too over generalized. If Malaysia is incompetent and too laidback, there will be no industry that could survive there. Furthermore, one of the Malaysian major exports is electronics and recently there are a lot of existing MNCs in Malaysia increasing their investment into the country expanding their plants, operation and services. Moreover, to compare with Singapore, haven't you realised that, there are 350,000 Malaysians who are willing to cross the border to Singapore daily just to support their family. How is that supposed to be laid-back?
@@Q-oy4dw yeah you are right, mostly cuz I stayed not for long as a traveller. I mean, the government officers gave me bad impressions of them being laid back, but I definitely shouldn't comment it as the characteristics of Malaysian people... Sorry for my wrong comment. After all, Malaysians are pretty happy and the living standard is good for its economy, which made me believe in it being a travel hub. For manufacturing, idk but it's a country with potentials.
They'll go where ever people are so desperate that they will work for almost nothing = bigger profits. China has moved beyond that and are trying to improve things for their wo
Why not move manufacturing back to the USA ! Print the US dollar and keep it too and for the first time after a CENTURY you get to have a reliable MADE IN AMERICA product via robots and AI, that way Americans get free money on behalf of USA Machines Corp..
because China wasnt even a significant market for Samsung. Samsung still holds the largest market share in the world and recently, has taken a huge share of the market share in Japan for the first time in 15 years. While Samsung lost market share there, it still holds the largest market shares in most countries globally
SIR MY INDIA IS THE REAL SUPERPOWER 🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN CHINA PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳
They don't even say China's side of the production. Although Samsung had a 70% decrease in employees, 50% of production is still in China, sounds like an increase in efficiency as well with some politics that decided this. A 25% increase of suppliers for Vietnam looks cute on paper but China is listed as more than 152 of those suppliers of 200, that's a decrease in China's eyes of 3% in 4 years, and while those 4 years there were shutdowns. In reality though, all the infrastructure must be complexly put together in 1 area to work efficiently and smoothly, it will take them decades and decades to build that infrastructure in other locations while the market for those countries do not support that investment. And while at that, China has the infrastructure already there with the market to support it; as long as China is able to stay reliable for the next 5 years without interruptions, there will be little reason to actually go elsewhere without it continuing to cost them billions and billions of dollars to build infrastructure elsewhere. India also forces companies to produce within their country to sell in their country, hence the 2% market share there. With China investing heavily in AI, robotics, and automation; while largely leading in manufacturing infrastructure innovation, China will have quite an edge for the decades to come. While India & Vietnam are looking to increase workers and expertise (For example, 4 years of engineering + Another 4 - 10 years for mature competency inside the field), China is already working on a process to automate most of it and mass implement with the most expertise already there. India & Vietnam have quite a mountain to climb against a competitor like China.
Well excellent comment but don't you think if automation takes place then these companies would produce in their own home country or some other developed countries which are also focusing on ai, robotics as much as china is focusing or may be even more.
@@AryanArora-xr4pw so which "developped" countries except the US, can have better AI, Internet, super computers, civil drones, 5G telecom equipment, quantum computing than China? what Musk does is to continuing investing in China, and China has just successfully tested its C919 passenger plane and send its first civilian to Space, so if other developed or developping natins want to compete with China, they are welcomed, but if they pretend that they can replace Chija with ease, it sound like daydream, China is the only worthy opponent of the Us in almost every high-tech fields, even the US can defeat China in a total tech war, it will take several decades and even century,
@@AryanArora-xr4pw The supply chain, infrastructure, innovation, technological advancement, competent expertise, subsidies and logistical advantages are just not comparable.
There are several major problems of manufacturing in China: the workforce is no longer cheap, China is increasing its regulation and the political situation is harsher and harsher, China's economic environment has proven to be unstable recently - its has introduced some unexpected changes, the relationship between China and the Werst is becomming more problematic wich means unsure future for business, huge portion of the Chinese workforce is going to retire soon.... All that means that staying in China is increasingly risky.
I'd like to think these companies were moving out of China due to well-considered ethical reasons, such as human rights concerns. Obviously, it's only naked self-interest and they're doomed to make the same mistakes again and again.
@@bakuninRogers ethics: kidnapping Huawei's owner's daughter, invade iraq based on fabricated facts, blockade cuba for 6 decades and counting because they have different country system, building military base in oil rich areas in middle east so they can safely loot the oil. and countless more.
This is quite normal as i read this new before when they moved their US and korea factory to China. After 10 years i will read them moved their factory again out of south east asia to africa or other country.
no american company will leave china. China is too big of a market for them. if all western companies will leave china the western world will collapse fast. really really fast. learn about things first before you make a stupid comment like this.
Nice try. When they try new locations, to the manufacturer horror things are worst than in China. Vietnam and India does not stand out due to political interference, poor logistic and poor worker training methods and lousy downstream sources.
Vietnam is a better option. Vietnam is a part of ASEAN, RCEP, and CPTPP, which eliminates many tariffs and unifies regulations. India is not a part of any economic or trade union. Plus, Vietnam is right next to China, Korea, Taiwan, and Japan; many components are imported from those countries, including crucial semiconductors. Shipping from Vietnam is cheaper, 50% of Apple's revenue is Americas, and 30% is China and Japan.
India has free trade agreements with ASEAN and also India is actually part of more economic and trade forums if you look includes BIMSTEC , BRICS, SAARC , LAS(observer) , G 20 , G15 , G7 ( invitee ) , ICC, AG , FAS and many more plus india is potentially a bigger market so operating from India gives a competitive edge in that market too , plus India has a higher innovation index than Vietnam [ India (37), Vietnam (34) ] so overall I think India might be a better choice .
@jaikrishan752 Apart from FTAs, none of those organizations reduce tariffs and regulations. ASEAN alone have bigger purchasing power than India. RCEP even bigger cause it includes ASEAN plus China, Japan, Korea, Australia, NZ. CPTPP includes Canada and some Latin American countries. All of those trade unions already or going to reduce at least 90% of tariffs. Being a part of those unions opens huge markets for Vietnam.
@@niko9108 but still if a company takes that into consideration they are accesible to around 700 million people ( a little more than the population of ASEAN ) but if they operate from India they are accesible to around 1.5 billion people (population of India) , more than double the population of ASEAN +
@@jaikrishan752 It's not about a sheer number of population, it's about purchasing power. And you forget other trade unions Vietnam is a part of. For instance, RCEP population is roughly 2.5bn. But no doubt India has a lot of potential
@@niko9108the purchasing power u talking about will only be expanding in India ...and u forgetting 200 million potential Bangladeshis ...so South Asia is future
It is not surprising at all that Samsung lost the Chinese market. Previously, Samsung held nearly 20% market share in the Chinese mobile phone market. However, in 2017, due to widespread quality issues with the Galaxy Note 7 batteries catching fire, Samsung initiated a global recall to address the problem. All of them? Yes. Except, of course, in China! This ultimately dealt a significant blow to Samsung's market share in the country.
It's not G-note 7 issue. It's THAAD dispute made Samsung and Hyundai lost Chinese market. Chinese communist party always control normal citizens to do boycott. Australia experienced Chinese Nationalism in 2020, Taiwan in 2019, US in 2018, Korea in 2017 and Japan in 2010
They got priced out because of competition. Chinese companies are so heavily competitive no matter the market value from premium to cheap, Samsung truly could not compete. When I was in China, I found 3 Huawei Stores, to surround 1 Samsung store with Oppo and others in the same place.
That's not true. Samsung's loss in the Chinese market is primarily due to Huawei and Xiaomi being considerably cheaper, and secondly, due to China's nationalist tendencies. In my opinion, the second reason carries more weight.
@@systemhacking Better quality and lower price, Samsung demands a premium pricing in which the market was unwilling to pay. They got what they deserved.
ok,next question is: If chinese economy is so sick, why would the US need to use its full might to counter China on economic fronts? LOL. Actions speaks louder than words
Samsung still produces a lot of chips in China and they can’t bring in the most advanced EUV equipment from ASML in the country. As long as the US’s chip sanctions against China continue, they have no choice but to move their fabs out of there. This will probably lead to a decline in sales to China as well, one of their largest markets for chips. Lower end memory chips which do not require the most advanced technology nodes would be made by local Chinese companies.
>>they can’t bring in the most advanced EUV equipment from ASML in the country. ...> This will probably lead to a decline in sales to China as well, ...> Lower end memory chips which do not require the most advanced technology nodes would be made by local Chinese companies.
I said this in 2014-2015 in supply chain class when they were teaching us to go sole source for economy of scale. I was like shouldn’t you have competition and risk mitigation? But my teacher just said you save money going sole source. Well here we are. Sole source in climate chain and political instability is not smart. I specifically said to move to India because they respect intellectual property. Although China is having conflict with India on the boarder who knows what will happen in the next decade. They are just chasing low labor costs ie Vietnam. I guess the building costs are low enough that just moving every 10-20 years chasing low labor the math adds up. Pretty soon climate change is going to disrupt a lot of shipping. Shipping won’t be as cheap.
@@Q_QQ_Qmy s23 ultra was made in india (samsung has its display plant in noida). So not just assembly. Only chips come from taiwan and korea (same was in china, it was assembling only)
@@Q_QQ_Q😂 its only chips now ! Samsung build world's largest Mobile factory in India ! From display to battery now all made in India! Exception only chips which will soon coming to India !
Not just Apple and Samsung, other International Brand names are moving out of PRChina, to avoid Sanctions and Higher Tariffs. But there are many still International Companies have decided to stay in China and even increased investments into PRCHINA, esp. those involved in Chemicals Manufacturing and Chemicals Processing, as many such industrial products manufacturing would find it difficult to be re-located & be accepted elsewhere nor even back to their own countries of Origins, as manufacturing such products, due to their potential risks of pollution and environment degradation issues can no longer be tolerated, except in PRChina.
That's true. Nobody is stopping companies making dirty chemical or minerals from leaving China b/c China is one of the few countries that do not care about their environmental or workers' health/rights.
Apple and Samsung’s bigger problem is not operation in China, but the competition from Chinese phones. They too will move to India and Vietnam to compete.
Samsung's problem is not Chinese competition, but China's protectionism. Samsung (global smartphone #1), Hyundai (global auto #3), LG Chem (EV battery, outside China, #1) and many other South Korean companies were forced out by the CCP to make room for domestic counterparts. It's China's plan to forced out all foreign companies ultimately, and replace them with their own. Nobody is under illusion that China is all about fairness, competition, or innovation.
Vietnam , Thailand , Indonesia , India , Mexico , Czech Republic , Poland & certain Africa nations are much safer , reliable , IP respected & smoother supply chain manufacturer bases to be consider! 🌏
I have stopped purchase of any Korean products in my household. One after another failed or stopped functioning long before similar products of Japanese makes would last. At this rate, I will even use Chinese makes as they will at least last as long but are cheaper.
Do you want WSJ to say that the Chinese gov't's forced out foreign business as part of Xie's state industry policy starting 2013? Samsung, along with Hyundai and LG Chem, were forced out of China as part of Xie's state industrial policy to protect and nurture domestic competitors. Samsung's 20% Chinese market share in 2013 dropped to 1% while they maintained #1 global top smartphone seller; Hyundai also had 10% of the Chinese auto maker in 2013; now down to 1%, but now they are top #3 global automaker. LG Chem also had 50% of the Chinese EV battery market in 2014, but was forced out by highy discriminatory and anticompetitive illegal subsidy, forced IP transfer and other practices by the Chinese gov't to exclude them from the Chinese market. LG is likewise the largest battery maker outside China. All South Koreans businesses are hyper competitive leaders in their respective field -- China can't hold a candle without the Chinese gov't protecting their market from them.
Apple for sure can build massive factories in India but to capture market shares from other manufacturers especially Samsung is impossible for them at the moment or in the future if we looked at Apple devices prices. Unless if in the future Apple start to release budget Apple devices,maybe then they can capture more than half market share.But for now,impossible😂
What is the top cell phone market share in the world? Perhaps look up this statistic before commenting. Samsung and Apple are both at the top, despite selling expensive phones.
True, I very much doubt Apple could take a foothold in the Indian market given that they didn’t really have first-mover advantage like they did in the US. Their current market share in India is abysmal to say the least.
Apple only needs to capture the premium smartphone division which they already lead in India. They're not interested in competing in the budget category.
@@stevens1041 The majority of samsung phones are mid range and low end devices. Samsung even has a special product line of mid range phones sold in China. Not only that, but the only samsung phones in the top 10 best selling 2022 smartphones in the world were midrange devices. Perhaps look up this statictic before commenting.
having iphones is a requirement to land a date in every country now. because pretty girls only use iphones, and they don't talk to guys whose text bubble is green (android). if you want to date a girl in India, you need an iPhone too. it's not an option
Anticipate a future where mobile device prices are expected to soar twofold, while our earnings, impacted by inflation, will command only half of their current buying power. Despite these economic shifts, it's unlikely that corporations will compromise on their profit margins. This could potentially lead to a decline in sales for major players like Apple and Samsung.
Did you miss the part where they said that manufacturing was cheaper in other Southeast Asian countries like Vietnam? And that labor costs had soared in China? These are business decisions, not just geopolitics. If Vietnam can manufacture phones more efficiently than China, then companies will move to Vietnam. Simple as that.
*Love how WSJ shows Taiwan as part of China in the Thumbnail must be getting very well paid by their Chinese Masters* PS :- Editing this comment *SPOILERS* You are late they already changed the thumbnail now it only shows Hong Kong 😂
Technically speaking Taiwan is part of China. But I don't think any western news outlet intentionally show Taiwan as part of China. It's by mistake I guess
The quality is not as good as that of Southeast Asians, so most of the Chinese production lines are transferred to Vietnam, Thailand, Malaysia, Indonesia
@@りんごT-i3t A factory is exactly that and considering the main apple factory in China are drafting farmers in to assemble products it can’t be that difficult. I’m sure India will be fine CCP troll.
@@りんごT-i3t "the quality" is an idiotic take when it's the same company with the same quality controls. Besides Indian products can easily out compete those other countries's ones.
There's no mention in this video about another major reason why foreign companies getting out of china, namely it's increasingly militarily aggressive buildup and tone, talk of war with America and invading Taiwan. Who'd have thought that harassing and threatening your business partners would result with them leaving to do business elsewhere? Duh ...
If you can read between the lines and understand geopolitical reasons you know they had no choice. India is an emerging tech heaven but it also needs to be vetted with a system of ensuring intellectual property is well protected. I can see more de-centralized manufacturing where parts of low intelligence needed jobs go as far as emerging Africa, some to Brazil or even other South American states just to have a supply chain with the highest possible integrity. Even Mexico has become a worthwhile partner in finalizing products destined for the US market. Fighting industrial espionage had long been an issue first in Japan, then in South Korea with China being eventually on the longest arm of power.
@@blokin5039 False. Their net income sucked, but they were in the black. Has nothing to do with China since they were making record profits in '19. Post-CCP shadow ban and pre-pandemic.
@@nickl5658 Again, False. Samsung reported operating profit of 640 billion Korean won (roughly $478.55 million), down from 14.12 trillion won a year earlier, its lowest level since the first quarter of 2009. Nick - let me help you out. Samsung is a huge company with several different divisions. You have to add (or subtract) all of them together for a total.
@@bgg2249 Who cares? They moved all their smartphone production out of China. Edit: very odd since they are cutting memory chip production overall. Not 100% sure, but looks like all semiconductor chip manufacturing is Korea or US.
Samsung build quality suffered a bit from moving outside China, Apple have seen rejected items at Quality Control in India hovering around 20%,while in China it's near 0%. India has a long time to go to catch up to the Chinese. I am not even mentioning infrastructure and integration which is incomparable.
The problem may not be just 20%. Without the competitive pressure from China, the failure rate of Indian products may reach 50%. Some people are always over-optimistic, especially Indians.
And it's not even samsung who diversified but it's was china who doesn't need samsung because it better to buy chinese phone or apple then buying samsung so it's impossible for samsung to existence in china . But this china trying to show as if samsung was the one who left lol rather it was other way around
it's interesting that there's no mention of the OEM/ODM companies that are the actual manufacturers for these companies, and that they also manufacturer for companies like Sony, LG, Asus, MSI, Lenovo, Philips, HP, etc...
Apple has strict control over its vendors. The actual manufacturers can be easily replaced if need be. Apple already incorporated 2 new local vendors to do assembly in india recently.
India’s cellphone market is for $199 and I think Tim Cook is just shifting the focus a bit. Moving 3% of manufacturing out of China to India is helping the politician fulfilling the promise to derisk. Right save 3% risk from made in China 🎉
@@ignashi7plays401 7% in India so roughly 93% in China. 2025 huh? Guess many things will change by then. Huawei is sure to come back and completely face to face with apple 🍏
You can manufacture in any country but can't replace China's market. Lower visibility and involvement with China, will lose loyalty to their products in long run. Seeking cheaper labour and market in growing countries are probably the reason of their move. Supply chain? China have the most rounded production ecosystem than other countries. So many parts are still from China. Don't think it matters as much.
iPhone is actually very popular in China. Apple contributed over 10% of China's smartphone sales volume in 2022. The iPhone 13 was the best-selling smartphone in China with a 6.6% market share, rising from the third spot in 2021 with a 2.3% share. Also, the iPhone 13's sales more than doubled in 2022 compared to the previous year statistics of 2023. its more popular then any chinese phone brands in china. so if you want to talk about something know your facts first.
Might be misleading to say the phones are manufactured in China, India, and Vietnam. The phones are 𝘢𝘴𝘴𝘦𝘮𝘣𝘭𝘦𝘥 in those countries. Components come from elsewhere.
This is likely the start of how global manufacturing works. That is, in about 20 years, when India and Vietnam no longer have very cheap labor and no longer have a need for large scale manufacturing, these companies are going to find other countries. Then, more countries, And on and on.
Depends on what is made. Labor is a big component of things like clothing. When you make computer chips or machinery, its actually the price of equipment, technicians, and electricity that matter a lot more. Look at a car factory today, a newer one--many robots, few workers. To prove my theory, find the lowest cost country in terms of dollars per hour--how many chips, computers, cars, steel are they making? China's advantage was never only in cheap labor--it was cheap labor, cheap electricity, and tons of infrastructure investment--airports, ports, railways, highways, and quick import/export.
Vietnam will never get trade war with USA, manufacturing long time in Vietnam is smart 😊
China is still numbe one because of well oiled supply chain and high skilled workers, cheap labour is no more a big factor
@@nguyenquang3194Vietnam is also a communist country, which the USA doesn't like. So never know what could happen in the future.
It's all just a tax and labour costs...
Two main reasons, 1) their cheap labor is no more 2) everyone expected a globalized China to be more transparent and liberal but the exact opposite is happening
Well summarized
Yep President Bush said a richer China would be altruistic. He was wrong
@@again5162 It is more altruistic. China actually does help alot. It is just not reported by western media... and debt trap? Loans from China come at 2-3% interest rate.. western loans come at 12-25% interest rate. Want to beat China.. offer a better deal.
@@nickl5658 Yes, China is honestly the most competitive and that's why countries choose China. Debt Trap diplomacy is fake, it's just propaganda on West's side.
SIR MY INDIA IS THE REAL SUPERPOWER 🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN CHINA PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳
The iMac I bought last week says it was made in Thailand. Was surprised to see that.
why they have more factories. i have a razer mouse thats made in China. but the exact same mouse is also made in Vietnam. nothing surprising about any of this
Assembled maybe. The design was done by the company.
The US is trying to block China from any advanced chips.
Likely to last longer !
@@Rusty_Gold85 and here we have a nother sinophobe. 90% of your stuff in your house or that you buy is made in china. you buy it because you think its good quality right? so stop crying about china.
It’s good to diversify productivity stations. I think it’s a forward thinking mentality. Hopefully prices can still remain cheap and inflation is not a major problem.
It might not be cheap iPhone anymore, since ship outside of China a single screw might cause $1 instead of $.001 within China. Just a example, there is no country is big as China can has everything/supply chains that cover everything. So the shipping cost will go up add to the material costs. iPhone will sell more expensive over time. Time will tell my hypothesis
Prices in manufacturing will remain cheap, resell only companies knows.
Yessir, let the iPhone be cheaper and let the labor die of hunger from cheap and unequal pay from a trillion dollar company, YAY gotta have the iPhone at all cost
Who cares, when does manufacturing come back to USA? Why would I now want it to go to Vietnam or India?
@@jie1379 I have been paying more for ‘not made in China’ for years. Means I can sleep easy knowing I don’t support slavery, organ harvesting, Communism in general.
Samsung is the largest investors in Vietnam.
Vietnam politics is stable and reliable compare to China.
Many young Vietnamese are learning Koreans and Japanese because they see a stronger business relationship in the future.
still a communist country.. btw with the surge of manufacturing in vietnam, they had to borrow electricity from china
Also, Vietnam is an attractive country for Korea because Korea and Vietnam are culturally close.
@@AhKaSoom😂😂Is Vietnam culturally close to South Korea? 😂 Are they all unable to understand the history of their own country?
stable？reliable？ really？😮
Are you gathering these "facts" from western media and dump it in here with such confidence as if you know better than Vietnamese? Vietnam is not stable, it's corrupt. Just because vietnamese like k-pop it does not mean vietnamese are close culturally with Korea. In Vietnam War, Korea deployed most military after US, brutally killing civilians and soldiers alike. We are still waiting for an official apology. The number of likes on your comment come purely from ignorance of people who want to believe that the world turns against China.
Due to the strong demand to Chinese local brands, almost nobody buying Samsung in China, sales volume of Samsung phones is really low, there's no reason for it to stay in China.
also because there are much more affordable options.... fashion is expensive.
If govt bans the product its doom for apple 😂😂😂😂
which are why copied models after internal workings plans and software is copied and created . Even the stores look like Apple stores
중국인들은 애플은 구매하지만 삼성은 절대 구매하지 않는다. 중국인들은 테슬라는 구매하지만 현대,기아자동차는 절대 구매하지 않는다. 그들은 미국과 싸우는척을 하지만 전세계에서 잘 팔리고있는 한국의 제품들은 최대한으로 절대 구매하지 않는다. 😅 😂 😊
아주 역겨운 이중성을 가진 민족이다. This is fact.
Although India and Vietnam have their own set of issues internally, they are very neutral countries.
India has a very, very protectionist regime in place and it has the habit of harassing foreign companies when they run afoul of Indian sensitivities. They usually harass those companies (examples being Nokia, Xiaomi, OPPO all of which with substantial investments there) with tax probes or FX repatriation matters. That's besides terrible red tape plus lousy logistics and efficiency. Vietnam is somewhat better due in part of its proximity to supply chains in Guangdong, China where many of the original factories were based to start with.
Neutral?
@Omy Haby indeed neutral .
@@omyhaby1912 Yes he said neutral.
Yes, neutral in terms of _they are not enemies._
For over a decade, China has been at war with the USA (and much of the rest of the world) in every way except militarily.
That is a smart move, since the trade war, people in China are starting to support their local brands, both Samsung and Apple has been losing their market share in China, so it is reasonable for these 2 companies to move production else where and just focus selling their products on western markets.
🤡🤡 apple phones still represented almost 23% of the market share in China
I once saw a survey on Chinese consumer preferences. Its shows that other than electronics, Chinese prefer western brands, especially vehicles and clothing.
@@sengwesetogile6054 German cars are very popular in the Chinese market, but in recent years, Chinese brands have caught up. A significant portion of the best-selling cars in the Chinese market this year are from domestic brands, with the BYD Qin Plus being the sales champion.
@@sengwesetogile6054 that statement could be true years ago but not anymore
samsung only assembles in india . not manufacture
As a consumer, I hate purchasing products from China. I would definitely prefer to buy products from Viet Nam, India, and many other countries.
What’s the difference between Vietnam and China or even India
Or has the media not yet brainwashed you about the other two 😄
is vietnam a western liberal democracy lol?
Vietnamese workforce is not reliable. They only very good in tailoring. That's all
Then you should stop buying electronics in general. After all, at least one component will be made in China.
@@levelaznIndia, l doubt this guy even heard of the Manipur incident to have the liking for India.
When they were told to bring their manufacturing to America they said it was impossible because of "highly specialized and delicate supply chains in China". Why can they easily relocate to other Asian nations then....?
ASK TESLA.
because war in Ukraine or COVID. pick one 😂
@@BLITZKRIEG1 excuse me, what?!
It's called supply CHAIN. And they are only one dot in this chain.
@Terryzn then whats the issue with making the iPhone in the USA? (I know the answer, just curious what you think)
I wonder when Africa will be the manufacturing hub of the world. In the 2050's? The 2070's?
Even with automation probably eventually negating geographic differences, Africa seems like a potential huge focal point for future manufacturing industries.
Can't imagine that African countries do not come up during these meetings when deciding, I just wish the countries had leaders that are serious about it's potential and worked towards progress and growth.
Africa is like 54 different countries with different currencies, laws etc. It's the exact opposite of what you get with a huge country like India & China.
As you say, automation may mean manufacturing is brought back to the West. Double or trebling productivity with AI and robotics will outweigh any gains made by cheaper employees.
Too unstable and too much corruption. Well, I'm not saying all of African countries but majority and even if there is no domestic instability in some, just having an unstable neighboring country is a turn off.
Not happening atleast before 100 yrs.
While India's contribution has increased it still falls really short in terms of manufacturing the important components such as chips and that is a problem that these companies and the Indian govt need to address in order to exploit the cheap Indian labor market. 6:32
foxconn is making two very big components manufacturing plants in india. in next 3-5 years, we can reach level of china in terms of value addition. vietnam lags in value addition. they are just focusing on assembling.
Report the channel and video for propagating the Chinese version of Indian map
I hope they are also developing recycling capabilities at these locations. If not, that should be a priority and would provide additional diversification.
Tech recycling is already centered in Indonesia and Malaysia, so this is already built-in to some extent.
"and would provide additional diversification."
That's adding cost, not diversification.
@@wisenber not if they can use the recycled materials, that’s generating their own supply chain. Also could sell recycled materials…
@@RealMattHaney They don't make that, as it's much lower margin.
Lowering your profit margin isn't the sort of diversification anyone wants to invest in.
India is the second worst polluter in the world. So we should work on that.
This is a very good video. It shows why companies must diversify in order to survive, while not pulling out . Its not really human rights but governments policies, high taxes and labor shortages are just a few reasons why companies must source from many other places and find the possible route to lower costs and earn a profit. Samsung and Apple made some smart choices
It’s never about human rights. It’s always about government stability and how they can ensure there will be no strikes every 2 months. Very difficult to see this in India. Nam, maybe more possible.
这是骗傻子的，三星从中国已经撤退十年了。前两年完成最后的搬离，三星是被抵制才搬离的。
>>Samsung and Apple made some smart choices
@@suryaprasanth9105 If you mean Modi always and do everything he says, then yes, the Indian government is stable. Modi is simply playing the same game Xi in China is doing, promoting nationalism. It definitely is a big market, but possibly will be the next country to into conflicts with Western democratic principles.
Companies move from China to Vietnam facing infrastructure issue. VN can't support large scale of manufactures, frequent power outage causing many interruption, slow down production output. It is a headache for them.
Correct the map of india at 3:16, you have cut pok and aksai China from india's map or get reported wsj
exactly
@Dr. Lev Luminesk Who are you to interfere in our internal affairs?
@@esparian4775 stoping crying like a child, International countries recognize only areas which india controls, if you want to change that then tell your leader to recover those lands
@@FocusOnHind again who are you? Do YOU know my country's history? You have zero rights to interfere in other nations internal affairs. Taiwan is showed to be part of China but not Kashmir and Ladakh as part of India. IF you are Indian, then please go to Pakistan and live there happily
@@esparian4775none of the international map show taiwan as chinese province.
International organisations wont show every countries claimed territories, we can show it for ourself but can't force others to show.
If we go by claims then according to russia ukraine is part of it so does india recognize that claim??
Vietnam welcome you ❤
in the factories you go, nguyen
The best way to secure component is having facilities closer to home. Economically speaking, this isn't the best deal for those larges companies.
China is and will remain one of the biggest manufacturer for Apple and Samsung, even though they chose to move their facilities from China, needed components are still manufactured there.
Moreover, logistic wise China has a big advantage if you compare to India or Vietnam, China has airports, seaports, roads. It is very convinient to order from China and Chinese workers are very used to ship goods across the world.
India and Vietnam need to catch up on this level. Sourcing from these countries will be another level (I work in the supply chain area and trust me when I have to order goods from China and India, it is not the same)
It would be interesting to follow how this will grow.
I agree, supply chain is what's keeping everyone trapped in China
Also, the Taiwan company Foxcon moved there manufacturer in India. The company profits cannot leave India.
That why Apple are still hesitate opening the manufacturing in India. 😂
My Samsung robot mop is made in Korea
The biggest problem with manufacturing in China is corruption although almost no one is discussing that.
India is addressing the connectivity issue . It will be a thing of past in a matter of three to 5 years
great job dragging out a headline into a full blown 6 minute, while sounding serious. BSing those essays in college was spot-on preparation for this job.
Boohoo 6 minutes 😢😢 my attention span can’t handle 6 minutes 😢😢😢😢
What the WSJ is not telling you is that labour is no longer cheap in China so semiconductor manufacturers have moved to cheaper countries like India. China is transitioning to a middle class domestic economy so they don't need to export as much.
1:14
You partly true ,but there’s a bunch of people poor af in China rural areas, some just earn $10 per day, I know it’s crazy but it’s true
Chipmakers build more fabs in US, Korea, Japan and Taiwan. Not in India
China is becoming incredibly hostile to the west. That is the absolute biggest reason because having a presence in China gives them access to the largest market.
@@kenyup7936 there is more than 50% population in India who don't earn 10$ every day
One major problem with outsourcing is security. Imagine what would happen if war broke out between America and China and most of America’s industry is in China.
So basically American manufacturers need to exit China fast because they will tank this global economy down to the ground. Mexico Latin America Africa would be a better solution
Then ask yourself why are the WSJ describing China as the number one enemy?
Those go first! Remember the U.S. pull out in Afghanistan... EVERYONE says it was bad, they left equipment blah blah blah. Meanwhile, in reality, THE TALIBAN HAS NOTHING, and no one even speaks on it, lol.
That imaginary war will never happen, there would be no gain no matter which side wins.
@thegarfield2414 There's no shared border between America and China.
As an Indian I fully support deepening cooperation b/w India and America. 🇮🇳♥️🇺🇲
Funny thing is that a lot of the factory in Vietnam are owned by the Chinese. Its their strategy for the trade war that's taking place right now. WSJ got to do a better job for getting the truth to the public. Any manufacturer in South East Asia will understand what I'm saying. 😉
Exactly, many companies in Southeast Asia are interlinked via ASEAN. Going to these countries for 10% income tax is simply playing into Chinese hands.
The video should have also mentioned that India has been increasing tariffs on cellphone and electronics imports, thereby encouraging companies to set up local production to keep and grow that market.
@@poppinc8145 they took deliberate regulations to fine china brands as well. very unfair, not a good move
@Sed yes we Indians did that and we are happy that our govt did it
@@sss2005sunil1 smear the normal technology licensing fees that manufacturers give to Qualcomm as foreign exchange outflows ??? stupid or malicious？
Labour costs are also going up rapidly in China. Most facilities in Vietnam are actually owned by Chinese companies. Future manufacturing cheap goods will all be made in south east Asia for cheaper labour
Southeast Asian countries have all suffered a history of colonial invasion. Although some Southeast Asian countries have conflicts with China, when Western colonialism deployed military forces to East Asia, they knew very well that the only option left was China (Russia) The strength is far inferior to that of China), and no Southeast Asian country is willing to let Western colonists dominate its own national destiny and future.
>>Most facilities in Vietnam are actually owned by Chinese companies.
Samsung smart phones have no market in China anymore , so they moved out all their phones factories .
Apple will maintain a big portion of their production facilities in China if they still want to sell their phones in China .
Apple will not maintain a big portion of their production in communist China. They don't have to and people will stilll buy because it is an iPhone
in 2015, South Korea was forced by USA to setup American air defence system against North Korean Nuke Missiles.
China didn't like that, and retaliated against South Korea, and started boycott against South Korean products, and companies.
That's why South Korean companies left China and moved their faciliites to other countries.
China was afraid of USA, so they could not retaliate against USA, and only able to bully South Korea. what a cowardly thing to do.
>>Samsung smart phones have no market in China anymore
They are moving all their assembly plants out which will mean they lose a lot of sales in China.
@@davidlazarus67 : except that Apple has no plan or desire to move -- 85% of more of their manufacturing will remain in China for at least next 10 years.
Good.
Now 7 months later, Vietnam manufacturing went bust. Increasing labor cost, increasing electricity cost, increasing water cost, and waiting for parts from China.
People need to understand that manufacturing is not just relocating an "assembly plant" from one country to another. It is also the whole manufacturing ecosystem and the stable environment. China has all that. Covid is a "wrench dropped on the hyper smooth operation of the supply chain" and it caused great harm to global supply chain. but as China opens up more, and the trade war is receding, business will remain in China as it is the "REAL DEAL" in both manufacturing and the consumption.
You will see some increases in Vietnam manufacturing and Mexico manufacturing. But what are we kidding? They are just assembling Chinese parts, or just simply putting "Made in Vietnam" or "Made in Mexico" stamps on before shipping to USA.
Assembling then Manufacturing of Certain Electronics products
Step by Step Mexico Vietnam Brazil and India beating China
Hopefully Samsung and Apple would consider Malaysia as the best destination for their semiconductor manufacturing. Malaysia has a lot of expertise in the industry with the industry already been in the country for over 50 years
I have been to Malaysia. It was a great nation to travel & stay for a period of time, but not a nation to produce goods in. People are laidback there, just compare Malaysian & Singaporean, Malaysian be like taking holidays every day.
@@karlk7070 to be honest I think that is too over generalized. If Malaysia is incompetent and too laidback, there will be no industry that could survive there. Furthermore, one of the Malaysian major exports is electronics and recently there are a lot of existing MNCs in Malaysia increasing their investment into the country expanding their plants, operation and services. Moreover, to compare with Singapore, haven't you realised that, there are 350,000 Malaysians who are willing to cross the border to Singapore daily just to support their family. How is that supposed to be laid-back?
@@Q-oy4dw yeah you are right, mostly cuz I stayed not for long as a traveller. I mean, the government officers gave me bad impressions of them being laid back, but I definitely shouldn't comment it as the characteristics of Malaysian people... Sorry for my wrong comment. After all, Malaysians are pretty happy and the living standard is good for its economy, which made me believe in it being a travel hub. For manufacturing, idk but it's a country with potentials.
They'll go where ever people are so desperate that they will work for almost nothing = bigger profits. China has moved beyond that and are trying to improve things for their wo
Market size is one of the key factor
4:20 Which smartphone should you buy? I will tell you.
Why not move manufacturing back to the USA ! Print the US dollar and keep it too and for the first time after a CENTURY you get to have a reliable MADE IN AMERICA product via robots and AI, that way Americans get free money on behalf of USA Machines Corp..
One phone would cost 3k 😂😂😂
@@sov19871987 more like 10k if not 30k
No one want to get sued when something went wrong
The labor in the U.S. is expensive and plus America one iPhone will go for at least 2K or 3K.
Not very smart are ya
What you didn’t share was Samsung losing market share in China
because China wasnt even a significant market for Samsung. Samsung still holds the largest market share in the world and recently, has taken a huge share of the market share in Japan for the first time in 15 years. While Samsung lost market share there, it still holds the largest market shares in most countries globally
My company is selling cosmetics lamer, bobbi blown, estee ect..., net sell from China biger than net sell from global 3 time 😅. We cannot leave China
@@dachochiyo3992 yep after seeing your other comments i can tell your not a troll and definitely not lying👍🙂 lol
SIR MY INDIA IS THE REAL SUPERPOWER 🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN CHINA PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳
1:26
Great move to manufacture in Vietnam
Better in India, China uses Vietnam as proxy nation.
They don't even say China's side of the production. Although Samsung had a 70% decrease in employees, 50% of production is still in China, sounds like an increase in efficiency as well with some politics that decided this. A 25% increase of suppliers for Vietnam looks cute on paper but China is listed as more than 152 of those suppliers of 200, that's a decrease in China's eyes of 3% in 4 years, and while those 4 years there were shutdowns. In reality though, all the infrastructure must be complexly put together in 1 area to work efficiently and smoothly, it will take them decades and decades to build that infrastructure in other locations while the market for those countries do not support that investment. And while at that, China has the infrastructure already there with the market to support it; as long as China is able to stay reliable for the next 5 years without interruptions, there will be little reason to actually go elsewhere without it continuing to cost them billions and billions of dollars to build infrastructure elsewhere. India also forces companies to produce within their country to sell in their country, hence the 2% market share there. With China investing heavily in AI, robotics, and automation; while largely leading in manufacturing infrastructure innovation, China will have quite an edge for the decades to come. While India & Vietnam are looking to increase workers and expertise (For example, 4 years of engineering + Another 4 - 10 years for mature competency inside the field), China is already working on a process to automate most of it and mass implement with the most expertise already there. India & Vietnam have quite a mountain to climb against a competitor like China.
excellent summary,
Well excellent comment but don't you think if automation takes place then these companies would produce in their own home country or some other developed countries which are also focusing on ai, robotics as much as china is focusing or may be even more.
@@AryanArora-xr4pw so which "developped" countries except the US,
can have better AI, Internet, super computers, civil drones, 5G telecom equipment, quantum computing than China?
what Musk does is to continuing investing in China, and China has just successfully tested its C919 passenger plane and send its first civilian to Space,
so if other developed or developping natins want to compete with China, they are welcomed, but if they pretend that they can replace Chija with ease, it sound like daydream,
China is the only worthy opponent of the Us in almost every high-tech fields, even the US can defeat China in a total tech war, it will take several decades and even century,
@@AryanArora-xr4pw The supply chain, infrastructure, innovation, technological advancement, competent expertise, subsidies and logistical advantages are just not comparable.
There are several major problems of manufacturing in China: the workforce is no longer cheap, China is increasing its regulation and the political situation is harsher and harsher, China's economic environment has proven to be unstable recently - its has introduced some unexpected changes, the relationship between China and the Werst is becomming more problematic wich means unsure future for business, huge portion of the Chinese workforce is going to retire soon.... All that means that staying in China is increasingly risky.
I'd like to think these companies were moving out of China due to well-considered ethical reasons, such as human rights concerns. Obviously, it's only naked self-interest and they're doomed to make the same mistakes again and again.
Yep, companies should all moved to America: The most ethical country in the world😂
@@fuleinist 😂😂😂😂😂😂😂
@@fuleinist lol, at least the Americans have ethics.
@@bakuninRogers ethics: kidnapping Huawei's owner's daughter, invade iraq based on fabricated facts, blockade cuba for 6 decades and counting because they have different country system, building military base in oil rich areas in middle east so they can safely loot the oil. and countless more.
@@fuleinist 😂
This is quite normal as i read this new before when they moved their US and korea factory to China. After 10 years i will read them moved their factory again out of south east asia to africa or other country.
I watch WSJ everyday, when getting up, resting mid day, doing housework, sleeping. ❤🎉.
GOOD.
The world needs to wake up.
MORE COMPANIES ARE GOING TO LEAVE CHINA
surely, those who can't compete in chinese market will leave. those who succeed will stay to enjoy their profit.
AND WHEN WILL IT COME BACK TO USA? I DON'T CARE NOR DO I WANT IT TO GO TO VIETNAM OR INDIA.
no american company will leave china. China is too big of a market for them. if all western companies will leave china the western world will collapse fast. really really fast. learn about things first before you make a stupid comment like this.
@@leethal59 if they would make their products in the US you will pay at least 3 times as much for an iPhone. you dont want that now do you
New companies entering china will be more than leaving china.
" thats a very good & very wise move "!
It is interesting to think why it took them so long to realize that they should have their manufacturing facilities in different locations.
because as long as everything goes fine it is cheaper not to diversify production. And businesses/managements are rewarded for short term success.
Nice try. When they try new locations, to the manufacturer horror things are worst than in China. Vietnam and India does not stand out due to political interference, poor logistic and poor worker training methods and lousy downstream sources.
Maintaining supply chain in multiple locations will trememdously increase cost of production, leaving room for competitors.
Thnx for showing correct map of my country.
Great reporting and just the beginning.
i did not expect WSJ to be correct but just FYI ... wrong map of india
Vietnam is a better option. Vietnam is a part of ASEAN, RCEP, and CPTPP, which eliminates many tariffs and unifies regulations. India is not a part of any economic or trade union. Plus, Vietnam is right next to China, Korea, Taiwan, and Japan; many components are imported from those countries, including crucial semiconductors. Shipping from Vietnam is cheaper, 50% of Apple's revenue is Americas, and 30% is China and Japan.
India has free trade agreements with ASEAN and also India is actually part of more economic and trade forums if you look includes BIMSTEC , BRICS, SAARC , LAS(observer) , G 20 , G15 , G7 ( invitee ) , ICC, AG , FAS and many more plus india is potentially a bigger market so operating from India gives a competitive edge in that market too , plus India has a higher innovation index than Vietnam [ India (37), Vietnam (34) ] so overall I think India might be a better choice .
@jaikrishan752 Apart from FTAs, none of those organizations reduce tariffs and regulations. ASEAN alone have bigger purchasing power than India. RCEP even bigger cause it includes ASEAN plus China, Japan, Korea, Australia, NZ. CPTPP includes Canada and some Latin American countries. All of those trade unions already or going to reduce at least 90% of tariffs. Being a part of those unions opens huge markets for Vietnam.
@@niko9108 but still if a company takes that into consideration they are accesible to around 700 million people ( a little more than the population of ASEAN ) but if they operate from India they are accesible to around 1.5 billion people (population of India) , more than double the population of ASEAN +
@@jaikrishan752 It's not about a sheer number of population, it's about purchasing power. And you forget other trade unions Vietnam is a part of. For instance, RCEP population is roughly 2.5bn. But no doubt India has a lot of potential
@@niko9108the purchasing power u talking about will only be expanding in India ...and u forgetting 200 million potential Bangladeshis ...so South Asia is future
My samsung S22 ULTRA was made in Korea, this video Is so interesting
It is not surprising at all that Samsung lost the Chinese market. Previously, Samsung held nearly 20% market share in the Chinese mobile phone market. However, in 2017, due to widespread quality issues with the Galaxy Note 7 batteries catching fire, Samsung initiated a global recall to address the problem. All of them? Yes. Except, of course, in China! This ultimately dealt a significant blow to Samsung's market share in the country.
In 2016, before the said event, Samsung’s market share in China was already below 5%.
It's not G-note 7 issue. It's THAAD dispute made Samsung and Hyundai lost Chinese market. Chinese communist party always control normal citizens to do boycott. Australia experienced Chinese Nationalism in 2020, Taiwan in 2019, US in 2018, Korea in 2017 and Japan in 2010
They got priced out because of competition. Chinese companies are so heavily competitive no matter the market value from premium to cheap, Samsung truly could not compete. When I was in China, I found 3 Huawei Stores, to surround 1 Samsung store with Oppo and others in the same place.
That's not true. Samsung's loss in the Chinese market is primarily due to Huawei and Xiaomi being considerably cheaper, and secondly, due to China's nationalist tendencies. In my opinion, the second reason carries more weight.
@@systemhacking Better quality and lower price, Samsung demands a premium pricing in which the market was unwilling to pay. They got what they deserved.
This is common knowledge at this point. This video should have come out 2 years ago or more.
Betting on China 🇨🇳 is a bad bet anyhow.
Basically, Chinese economy is very sick. There's no cure!
troll account spotted.
China hating bot 😂
China is fine. They’re stagnant but they’ll rebound
ok,next question is: If chinese economy is so sick, why would the US need to use its full might to counter China on economic fronts? LOL. Actions speaks louder than words
Just like there is no cure for drug and gun violence addicts in US.
SUPER 😊👍
Samsung still produces a lot of chips in China and they can’t bring in the most advanced EUV equipment from ASML in the country. As long as the US’s chip sanctions against China continue, they have no choice but to move their fabs out of there. This will probably lead to a decline in sales to China as well, one of their largest markets for chips. Lower end memory chips which do not require the most advanced technology nodes would be made by local Chinese companies.
>>they can’t bring in the most advanced EUV equipment from ASML in the country. ...> This will probably lead to a decline in sales to China as well, ...> Lower end memory chips which do not require the most advanced technology nodes would be made by local Chinese companies.
Samsung has an one year exemption+extension that allows them bring equipment into China
I said this in 2014-2015 in supply chain class when they were teaching us to go sole source for economy of scale. I was like shouldn’t you have competition and risk mitigation? But my teacher just said you save money going sole source. Well here we are. Sole source in climate chain and political instability is not smart. I specifically said to move to India because they respect intellectual property. Although China is having conflict with India on the boarder who knows what will happen in the next decade. They are just chasing low labor costs ie Vietnam. I guess the building costs are low enough that just moving every 10-20 years chasing low labor the math adds up. Pretty soon climate change is going to disrupt a lot of shipping. Shipping won’t be as cheap.
India is on the path to more per capital income and prosperity. Apple's brand prestige can serve it lot in india
samsung only assembles in india . not manufacture . apple production is producing very low qualifty products in india .
@@Q_QQ_Qmy s23 ultra was made in india (samsung has its display plant in noida). So not just assembly. Only chips come from taiwan and korea (same was in china, it was assembling only)
@@Q_QQ_Q😂 its only chips now ! Samsung build world's largest Mobile factory in India ! From display to battery now all made in India! Exception only chips which will soon coming to India !
Go Samsung 📈👌
Not just Apple and Samsung, other International Brand names are moving out of PRChina, to avoid Sanctions and Higher Tariffs. But there are many still International Companies have decided to stay in China and even increased investments into PRCHINA, esp. those involved in Chemicals Manufacturing and Chemicals Processing, as many such industrial products manufacturing would find it difficult to be re-located & be accepted elsewhere nor even back to their own countries of Origins, as manufacturing such products, due to their potential risks of pollution and environment degradation issues can no longer be tolerated, except in PRChina.
That's true. Nobody is stopping companies making dirty chemical or minerals from leaving China b/c China is one of the few countries that do not care about their environmental or workers' health/rights.
It's about time!
Isn't this the strategy of the United States? Apple and Samsung are both forced to do so.
Feel bad for the people who were mistreated by Apple and Samsung
End of the day it’s about more profits and cheaper labor 😅
Good, I will happily buy an Indian iPhone
Apple and Samsung’s bigger problem is not operation in China, but the competition from Chinese phones. They too will move to India and Vietnam to compete.
They already existed and dominated Indian market for almost a decade, but Geopolitics has meant their share is going down steadily.
xiaomi and vivo has been in India for many years and they even have local factories there
Samsung's problem is not Chinese competition, but China's protectionism. Samsung (global smartphone #1), Hyundai (global auto #3), LG Chem (EV battery, outside China, #1) and many other South Korean companies were forced out by the CCP to make room for domestic counterparts. It's China's plan to forced out all foreign companies ultimately, and replace them with their own. Nobody is under illusion that China is all about fairness, competition, or innovation.
india the next super power❤❤❤❤❤
Vietnam , Thailand , Indonesia , India , Mexico , Czech Republic , Poland & certain Africa nations are much safer , reliable , IP respected & smoother supply chain manufacturer bases to be consider! 🌏
Their market shifted away too;)
Fast forward to 2050: Apple and Samsung moving to Nigeria because of Indian government's stance against USA.
Maybe 2035
lol,true
Timbaktu
this is a must
I have stopped purchase of any Korean products in my household. One after another failed or stopped functioning long before similar products of Japanese makes would last. At this rate, I will even use Chinese makes as they will at least last as long but are cheaper.
WSJ didn’t say is Samsung’s China market share disappeared
WSJ only america propaganda😂😂
Do you want WSJ to say that the Chinese gov't's forced out foreign business as part of Xie's state industry policy starting 2013? Samsung, along with Hyundai and LG Chem, were forced out of China as part of Xie's state industrial policy to protect and nurture domestic competitors. Samsung's 20% Chinese market share in 2013 dropped to 1% while they maintained #1 global top smartphone seller; Hyundai also had 10% of the Chinese auto maker in 2013; now down to 1%, but now they are top #3 global automaker. LG Chem also had 50% of the Chinese EV battery market in 2014, but was forced out by highy discriminatory and anticompetitive illegal subsidy, forced IP transfer and other practices by the Chinese gov't to exclude them from the Chinese market. LG is likewise the largest battery maker outside China. All South Koreans businesses are hyper competitive leaders in their respective field -- China can't hold a candle without the Chinese gov't protecting their market from them.
It hasn't disappeared, but its market share is very small
Apple for sure can build massive factories in India but to capture market shares from other manufacturers especially Samsung is impossible for them at the moment or in the future if we looked at Apple devices prices. Unless if in the future Apple start to release budget Apple devices,maybe then they can capture more than half market share.But for now,impossible😂
What is the top cell phone market share in the world? Perhaps look up this statistic before commenting. Samsung and Apple are both at the top, despite selling expensive phones.
True, I very much doubt Apple could take a foothold in the Indian market given that they didn’t really have first-mover advantage like they did in the US. Their current market share in India is abysmal to say the least.
Apple only needs to capture the premium smartphone division which they already lead in India.
They're not interested in competing in the budget category.
@@stevens1041 The majority of samsung phones are mid range and low end devices. Samsung even has a special product line of mid range phones sold in China. Not only that, but the only samsung phones in the top 10 best selling 2022 smartphones in the world were midrange devices. Perhaps look up this statictic before commenting.
having iphones is a requirement to land a date in every country now. because pretty girls only use iphones, and they don't talk to guys whose text bubble is green (android). if you want to date a girl in India, you need an iPhone too. it's not an option
why u show distorted map of india . why show assam differently
Anticipate a future where mobile device prices are expected to soar twofold, while our earnings, impacted by inflation, will command only half of their current buying power. Despite these economic shifts, it's unlikely that corporations will compromise on their profit margins. This could potentially lead to a decline in sales for major players like Apple and Samsung.
That's why they are pivoting into AR/VR. Their cash cow is in the intangible products and APP store.
Did you miss the part where they said that manufacturing was cheaper in other Southeast Asian countries like Vietnam? And that labor costs had soared in China? These are business decisions, not just geopolitics. If Vietnam can manufacture phones more efficiently than China, then companies will move to Vietnam. Simple as that.
More likely they will drop in half ... just like TVs or computers.
i believe Samsung not only has factory in CHina, India, Vietnam, but also Indonesia, Brazil and their hometown South Korea
*Love how WSJ shows Taiwan as part of China in the Thumbnail must be getting very well paid by their Chinese Masters*
PS :- Editing this comment *SPOILERS* You are late they already changed the thumbnail now it only shows Hong Kong 😂
Technically speaking Taiwan is part of China. But I don't think any western news outlet intentionally show Taiwan as part of China. It's by mistake I guess
you should ask your Indian government since your own country india recognize Taiwan as part of china.
@@kypronite even USA doesn't recognise Taiwan
The thumbnail doesn't include Taiwan in China's highlight??
Brother I hope you check the thumbnail again and go on google to verify your knowledge of where taiwan is
So because Samsung moved out of china, now you see their phone quality dropped with many green screens😂
India is the best place. With India investing heavily on infrastructure, and FTAs with many countries, it's the best choice to invest in.
The quality is not as good as that of Southeast Asians, so most of the Chinese production lines are transferred to Vietnam, Thailand, Malaysia, Indonesia
@@りんごT-i3t A factory is exactly that and considering the main apple factory in China are drafting farmers in to assemble products it can’t be that difficult. I’m sure India will be fine CCP troll.
@@りんごT-i3t "the quality" is an idiotic take when it's the same company with the same quality controls. Besides Indian products can easily out compete those other countries's ones.
@@りんごT-i3thow come in software side none of your favs like China and Vietnam come anywhere near.
infrastructure here certainly dont include trains...
There's no mention in this video about another major reason why foreign companies getting out of china, namely it's increasingly militarily aggressive buildup and tone, talk of war with America and invading Taiwan. Who'd have thought that harassing and threatening your business partners would result with them leaving to do business elsewhere? Duh ...
Tim Cook is delusional if he thinks he can mark it 1,000 to 1,200 phone to everyday Indians.
WSJ giving a part of India to china and Pak as saying sorry ig... (Indian map is incorrect!)
Please do this ASAP!
Japanese co. also moving out and given huge incentives in doing so.
Samsung trying to make cpus pfffft. We all know how that turned out. Look at overheating Snapdragon and rtx 3000.
@@fynkozari9271 🙃
Interesting
If you can read between the lines and understand geopolitical reasons you know they had no choice. India is an emerging tech heaven but it also needs to be vetted with a system of ensuring intellectual property is well protected. I can see more de-centralized manufacturing where parts of low intelligence needed jobs go as far as emerging Africa, some to Brazil or even other South American states just to have a supply chain with the highest possible integrity. Even Mexico has become a worthwhile partner in finalizing products destined for the US market. Fighting industrial espionage had long been an issue first in Japan, then in South Korea with China being eventually on the longest arm of power.
I would buy a Chinese phone over an Indian made Samsung or Apply any day
The Chinese aggression with South Korea over THAAD was a blessing in disguise for Samsung.
Samsung is in the red and bleeding money.
@@blokin5039 False. Their net income sucked, but they were in the black.
Has nothing to do with China since they were making record profits in '19.
Post-CCP shadow ban and pre-pandemic.
Samsung is bleeding money... $3 billion in losses in the first quarter of 2023 alone.
@@nickl5658
Again, False.
Samsung reported operating profit of 640 billion Korean won (roughly $478.55 million), down from 14.12 trillion won a year earlier, its lowest level since the first quarter of 2009.
Nick - let me help you out. Samsung is a huge company with several different divisions. You have to add (or subtract) all of them together for a total.
@@bgg2249 Who cares? They moved all their smartphone production out of China.
Edit: very odd since they are cutting memory chip production overall.
Not 100% sure, but looks like all semiconductor chip manufacturing is Korea or US.
Brand, chip market competition is changing the supply chain game as well...
Samsung build quality suffered a bit from moving outside China, Apple have seen rejected items at Quality Control in India hovering around 20%,while in China it's near 0%. India has a long time to go to catch up to the Chinese. I am not even mentioning infrastructure and integration which is incomparable.
The problem may not be just 20%. Without the competitive pressure from China, the failure rate of Indian products may reach 50%. Some people are always over-optimistic, especially Indians.
And it's not even samsung who diversified but it's was china who doesn't need samsung because it better to buy chinese phone or apple then buying samsung so it's impossible for samsung to existence in china . But this china trying to show as if samsung was the one who left lol rather it was other way around
Source:CCP bot
@@neo_smithwow 😂 so funny where u get these numbers? Huh
samsung only assembles in india . not manufacture
The map of India is WRONG.
HOPE THIS HELPS!
thats the part india controls, if you want to change that then tell modi to recover those areas instead of crying in comments
Good Thinking
The Indian map is wrong . Please use the correct one which includes Kashmir .
Report the channel and video
Why this background music? People with hearing impairment are not able to hear the dialogue.
Past: Apple was known as the innovator.
Present: Apple is now known as playing copycat.
There are no innovators in cellphones.
it's interesting that there's no mention of the OEM/ODM companies that are the actual manufacturers for these companies, and that they also manufacturer for companies like Sony, LG, Asus, MSI, Lenovo, Philips, HP, etc...
Apple has strict control over its vendors. The actual manufacturers can be easily replaced if need be. Apple already incorporated 2 new local vendors to do assembly in india recently.
India’s cellphone market is for $199 and I think Tim Cook is just shifting the focus a bit. Moving 3% of manufacturing out of China to India is helping the politician fulfilling the promise to derisk. Right save 3% risk from made in China 🎉
By 2025, Apple is expected to raise its production to 25% of the global iPhone share in India.
As of now, it stands at 7%.
It's already 7% at the end of 2022, and will go to 25% by 2025.
You are delusional
@@ignashi7plays401 7% in India so roughly 93% in China. 2025 huh? Guess many things will change by then. Huawei is sure to come back and completely face to face with apple 🍏
@@unclesam8565 It's 85% in China.
Who knows what's gonna happen till 2025, may be Huawei can go bankrupt by then.
Spoiler alert, it didn't end well for Apple or Samsung.
India's map is not correct... Please take action...
Yes Pok and aksai chin are also parts of India
The map is correct punk
@@SanjivKumar-cw3oq Report the channel and video .
Samsung is the future
You can manufacture in any country but can't replace China's market. Lower visibility and involvement with China, will lose loyalty to their products in long run. Seeking cheaper labour and market in growing countries are probably the reason of their move. Supply chain? China have the most rounded production ecosystem than other countries. So many parts are still from China. Don't think it matters as much.
Best out of it.
NOBODY IN CHINA USE SAMSUNG SMARTPHONES, A FEW CHINESE PEOPLE USE IPHONE, THE REST USE HUAWEI, XIAOMI, VIVO, OPPO, ETC.
iPhone is actually very popular in China.
Apple contributed over 10% of China's smartphone sales volume in 2022. The iPhone 13 was the best-selling smartphone in China with a 6.6% market share, rising from the third spot in 2021 with a 2.3% share. Also, the iPhone 13's sales more than doubled in 2022 compared to the previous year
statistics of 2023. its more popular then any chinese phone brands in china. so if you want to talk about something know your facts first.
Nope, you miscalculated the people in Hong Kong, they love Samsung
From Singapore and proud that a clip from CNA made it to a video by WSJ hahaha
Might be misleading to say the phones are manufactured in China, India, and Vietnam. The phones are 𝘢𝘴𝘴𝘦𝘮𝘣𝘭𝘦𝘥 in those countries. Components come from elsewhere.
Just like semiconductor chips
What people don't talk about is that China is I Phone's biggest market