How China Tricked Apple
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- Опубликовано: 17 фев 2023
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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. 
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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.
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%.
@@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.
@@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.
@@hurry2011we're taking about two different things. I responded to Apple's US tax remittances. You bring up one aspect of their overseas taxes.
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).
Apple has already reaped it's benefits, now it has to deal with the costs.
@@jaimerodriguez1550 also is hilarious that the company that do all the human right violations come from ''democratic Taiwan'' (FoxConn)
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.
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.
don't forget that china have nothing to do with Foxconn management which is taiwanese company.
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.
Foxxconn is a Company from Taiwan producing iPhones in China Shenzhen
Foxconn have all but pulled out China, moving Apple iPhone production to places like Indian
India is better got out of one hole JUMP INTO THE OTHER
@@tk9780 let's see what will happen to quality when it moves to india.
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.
Oh is that how it worked? 😂
I'm aware of a different type of "quality fade" scam
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. 😵💫
@@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.
Bring manufacturing back to USA
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.
Just to clarify: you are implying that human rights are more important than money, correct?
The West benefits from human rights violation outside the west
@@SM16Basketball haha yeah
@@austincodes why?
@@austincodes did you write than message form an iPhone ? 😂😂 - what do you use ?
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.
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.
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
@@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....
@@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....
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.
The title of this content should be ‘how apple took advantage of China’. China’s capacity made Steve Jobs dream a reality.
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.
China didn't "make" anything. They just outsourced to Foxconn -- a Taiwanese company -- which operated _assembly_ plants in China.
Yup! 100%
Did not take advantage of China. china had nothing, Apple gave high tech manufacturing jobs.
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.
Shrinkflation - en.wikipedia.org/wiki/Shrinkflation
I never knew this happened in the U.S. I thought we only experienced this in Nigeria. Quality keeps dropping and prices keep soaring.
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.
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.
Very objective and true.
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.
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
It's not just to make a good company yearly profit anymore !! .its just plain evil greed!!!🔥
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.
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.
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.
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.
@@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.
it should be will local producers
as now consumers are slaves of corporations and turbocommercial marketing (plus control of media and education)
If anything, this shows how much humanity could accomplish if we all worked together.
Nah, it shows how much one party could steal from another
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.
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.
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.
IS THERE A VIDEO ON THIS?
How did you find all this out about their supply chain? Any links you could share?
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.
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”.
And Steve Jobs would have had difficulty being direct with Barack Obama in 2012. . . since Jobs died in October, 2011. Dude, up your game!
Enough misinformation that I’m unsubscribing. . .
@@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
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.
Same happens in Brazil
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.
Seriously so glad to find this channel. Deeply informative and plain rivetting.
John Googan is the man to watch, love this channel and hellz yeah I'm a subscriber!
Currently 7% if 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.
Honesty I don't have much faith in product made in India.
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.
Europe returned all the iphones that were made in India. Poor quality.
They still can't bring back those jobs to USA it seems.
India iphone is fake 😂😂😂😂
Concentrating production in one country or even one region/country/area is a huge tactical blunder
and one they are willing to repeat in India this time.
This was very well produced; I go a lot of indepth information 👍🏾 Well done
Just asking, how can I find the references about the toxic chemistry paper cups from Chinese manufacturer?
Huawei shares profits with its employees❤😊
They’re dug in too deep. Thanks for the comprehensive explanation.
You have an interesting way of telling this stories John. Thanks alot!
posibly wrong stories. i phone is not the best selling product of all time or evern the best selling phone
Please, what does it mean that before Apple signs in any supplier, it's engineers have to sign off the supplier's organization? Thanks 👍
In France we have a saying which is : Buy chinese, buy twice
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.
A population of 1.5 Billion
Love your clear way of efficiently presenting information! Thank you!
I will never ever use this bs product. Its really a pain to know that each Iphone contains blood of an enslaved Chinese worker.
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.
A neighboring business to my father's, which machined car parts, used to have its employees come to our deli for lunch.
One day, the employees stopped coming. When I next saw the owner, he explained that he had offloaded all his manufacturing to China.
Within a year, the Chinese manufacturers had identified all his customers and began drop-shipping directly, effectively cutting him out.
China conducts business with the strategic mindset of Sun Tzu in warfare. Their approach is not about forming partnerships but about achieving domination with an unwavering urgency to win.
Morality fade... woah. That is quite impactful way to call it out.
I worked on a product made by Dymo in China; they had to keep a rep in Shenzhen during the entire manufacturing run to prevent quality fade. The minute you look away, cheaper parts get thrown in. You really have to be there at all times.
Wait until they start manufacturing big in India , the expats are going to go insane!
The Golden Era of early Alibaba->DHL->Amazon P2P was so wonderful, ... until Big Retail complained, and Trump issued his fatwah against 'Evil China', that continues to this day. That crushed quality, as you've noted. It makes me sad to think US Big Retail charges us for ONE Chinese product, what they pay for a DOZEN. 1200% markup for Corporate USA.
The criminality in China is mins boggling. We think things are bad in the West but now I have begun to understand what China is really like , it is the largest most powerful criminal organisation in the world.
Making everything in China was done for greed.
Made in America used to mean something
@@bradleyhalfacre7992 souds like usa militery complex
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😊.
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?
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.
Vietnam is still communist 😂😂
check Vietnam "country system" and you'll be surprised.
Why don't you people manufacture yr own airpods? Lol
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.
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.
Totally agree with you. Actually Apple done the same thing, pushing their supply chain lower the cost
@@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
Apples products have never been consistently except before Steve Jobs died
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.
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
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 :)
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
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
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 😂
Timmy boy better pray papa musk rolls out those Optimus bots by the end of the decade
We found out that another way Chinese factories made more money was by making more of the product than we ordered. And they sold it out the "backdoor". And enough of the key suppliers did this such that a whole second factory was created making the same product indistinguishable from ours because it was exactly ours. Then as ours got delivered through supply chains to the manufacturers and to the end sales companies it was impossible to keep track of where they all came from.
It's old game. It doesn't work anymore. Parts and systems in product was identified by software. Product is not from Apple will be considered fake and have no support.
Reason why we bought only parts and try to keep secret what is the real product
Did you give enough profit from the product they made?
@@mailtoray Some people would still do this, you need your own team monitoring the operation, assuming they don't get bribed to look the other way.
They are perfectly right. You cannot be so greedy to keep 99% of the profit for you.
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.
I work for a small company. We have maybe 7 people in the United States but a warehouse and factory in China with dozens
What's the name of that court case that the supreme Court ruled that law enforcement has no duty to care?
thank you very much for your deep research and opinion on topic. 😊
One thing about Quality Fade is that Chinese manufacturers deliberately bring down the quality to test how susceptible you are to it. they will do it slowly untill u reject their goods and they will then find out what is the minimum they can get away with.
This is your own experience. However, I had experienced totally the opposite and positive experience from dealing with OEM in Chian.
@@efaxing6649 In Chian? Yes, but not in China!
its a common practice in america too. customers hate price increase, then burger become smaller, more air in the milk bottle or smaller bottle... the basic rule is you get what you paid for. did you stop buying milk? no because this is still a bargain otherwise you could switch to other brand.
top companies, want to stay the top, and maintain competitive against rivals, has to make sure all supplies to provide quality and cheap materials. top company has to have a techo team to work with suppliers and help them to reach better qualty and higher standard while pushing them to drop price. it is normally the decision from us to tell suppliers to switch materials with approval. it is impossible for them to secretly change materials. becoz, soon we can find it out...
@@liveinsea1 right! everything shrinks!
EXACTLY, even when you order product from china look how cheap it is wrapped, packaged and shipped, LESS THAN BARE MINIMUM. Quality Fade is why you have to buy insurance on everything. What KILLED a company called, "Sharper Image", was outsourcing to China, everything broke and needed to be replaced. I can not tell you how many things broke, right before the insurance expired, lucky for me I REPLACED IT ALL FOR FREE. Other people not so lucky and PEOPLE GOT MAD and PUT THEM OUT OF BUSINESS. rightfully so ... go figure.
US reporter saying China doesn't respect their worker's human rights is so ironic lmao.
would you rather be a worker in the US, or in China. I think that's an easy choice. The US all the way, hands down. If this were a US versus western and central Europe comparison, on the other hand, it would be quite a different story, with the US advantage shrunk down to "ease of getting started in a career or occupation" and European settings with an obvious advantage in most other areas.
Poor Steve, if only he knew Chinese were forced to work overtime, he would stop it immediately.
Razmisljaju samo o profitu!
@@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 ;)
@@borissergijevic7357 naravno :) znam celu pricu
work overtime to produced faulty product that is deliberately lifespan shorten to let consumer buy again when it break down
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
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.
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!
"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
Germany has them. But you don't want to pay what they earn.
India
This is the perfect example of freefom of lying.
so are we calling slavery "morality fade" now?
Dude is worried about being demonetized.
Watching Coogan is enjoyable with tech insights and perspective ❤
He's repeating project mocking bird talking points, the path to success on us government platforms.
and biased contents.😀
02:59 ...
wow
nice one, i'm now definitely watching there remainder of your video.
probably subscribing for you showing me that..
And why RBA council did not come after Apple Inc, Foxconn & Pegatron?
Household-name consumer brands like Starbucks, Nike and Under Armour have a large customer base in China. Tech and automobile giants like Intel, Apple, Tesla, General Motors and Ford not only rely on Chinese consumers, but also have huge manufacturing networks in the country. Intel, Apple and Tesla each generates about a quarter of their revenue from China. Tesla, which opened a factory in Shanghai in 2018, now makes half of its electric cars in China. And until 2019, Apple also had about half of its assembly lines located in China. (It fell to to 36% as of 2021.)
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.
Does this has something to do with BAM being such a big company?
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.
@@ianedmonds9191 corporate socialism
@@ianedmonds9191 🙏🧡🧡🧡✊
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.
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.
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.
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.
They did that to Motorola, first .... Lock , stock ...... It was written in their contacts
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
Blood Phones.
I won't have an Apple phone, no way in hell.
Apple wasn't tricked at all. China has the skilled workers, and ability to set up the production lines
Why not state that Foxconn is a Taiwanese company?
Isn’t that Qualcomm
All asian are the same, Korean factory is Chinese, foxconn is Chinese because Taiwan belongs to china
@@emmanuel1687 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.
isn't Foxonn Taiwanese company?
That’s Qualcomm
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.
Vietnam does not have 24 hr electricity. Its cities have had lots of power outages which are not acceptable for running a multi-shift factory. Other problem are supply chains, weak infrastructure, and weak transportation.
I wonder how many years have gone in to creating an almost fully automated factory and what crisis they are waiting for to fully roll that out outside of China.
Always enjoy watching videos from this channel. The history of global ripples of the tech industry are interesting to learn.
Loved this Brilliant presentation . Essentially difficult to extricate from the arrangements with the China partners.😢😅😂
Excellent reporting.
What a quality video brother. You earned a subscriber brother ❤
Money and greed
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.
damn bro this was really well done.
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
Beautiful content. Thanks a lot too.
LoL! You have absolutely no understanding of how Foxconn of Taiwan, or any of the other component manufacturers, which are also from Taiwan, works.
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...
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).
John your channel is absolutely underrated, and is one of the best sources of information for independently made documentaries.
You are so right about this!
Thanks a lot! "Underrated" is such an amazing compliment. That's what I strive for!
its not underrated rather underexposed . the algo is not pushing this things .
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.
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
Cost did not reduce. In fact it expanded.
Yes like apple almost bankrupt to one of the most valuable company.
They are slowly. Apple use Taiwan, China and India. Soon they want it to be Taiwan and India only.
Can you please update this video to compare to the current situation
I am loving the amount of work you have put into this video 🤝🏾🤝🏾🤝🏾 You found a subscriber in me
That was very informative.
Really great video!
I look at the thumb nail and see Whinnie the Poh laughing . I did not think that was possible for a man that looks like he has not taken a crap in ten years.
17:57 no sugar coating at all 😂
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.
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.
@@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 RUclips.
@@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?
Look her up online; she has a website where you can contact her and properly get in touch with her to learn more.
Apple is shifting to manufacturing to Vietnam, India, and the U.S.
Apple is the best selling phone maker in history while only 10% of the populence could afford it 🙄
the billboard sign at 5:31, pretty sure those are Korean characters on there..LOL
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 ?
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.
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
@@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
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.
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
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.
@@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.
This video is now 6 months old. Time to update this video.
If you keep your keys and phone in the same pocket you deserve to be on LiveLeak imo
But if the apple is in contract with the chinese manufacturer, how is apple responsible for how the chinese manufacturer treats their employees? Even if apple raises its price for contract, the chinese manufacturer might still extract everything out of the employees and exploit them.