Apple Considers Expanding Manufacturing Base to Indonesia

[sw1tcher]

lol Americans don't want to work manual labor.

We trained our labor force to work office jobs, which means work-from-home jobs now.

Right which is why there’s no domestic auto manufacturing, oh wait…

It's true that the U.S. has auto manufacturing, but it's also true that fewer and fewer Americans want to take factory/manufacturing jobs. So mozumder's point still stands.

Michigan auto industry struggles to hire, keep workers — with some quitting by lunch

Automakers and parts manufacturing are bleeding jobs as suppliers and carmakers struggle to hire and retain employees in factories. Is a fix on way?

www.freep.com

Small-town auto plants face challenge once hard to imagine: Finding workers

Automakers have strategically placed assembly plants in small-town America with the promise of attractive, well-paying jobs in low-cost areas. A weakness has been exposed in that once solid formula.

www.autonews.com

US factories are booming, but finding workers is still a struggle

Construction spending on US manufacturing has doubled from a year ago, though employment in the sector has lagged.

www.businessinsider.com

Understanding America’s Labor Shortage: The Most Impacted Industries

American businesses are creating hundreds of thousands of jobs each month, yet a significant number of positions still remain unfilled, especially in the professional and business service sector.

www.uschamber.com

 

[arkitect]

Diversifying is good. In case China goes all in on Taiwan, Apple will not be hurt too much after the possible sanction regime. As well as it is good for Indonesians, more workplaces means prosperity for all

If China goes "all in on Taiwan" , having the latest and greatest iPhone will be the least of our worries.

 

[steve09090]

Right which is why there’s no domestic auto manufacturing, oh wait…

Which is Government subsidised. You would like the government to pay Apple large sums to manufacture in the U.S. like they do with the Auto industry?

 

[scrapesleon]

so we will be getting cheaper iPhones right right

 

[haunebu]

They ran out of slave labor and need to find more. Just one more reason why Tim Cook has to go.

Wasn't all that long ago you could find a Mac Pro that was Made in USA. But Tim Cook's Apple would rather exploit desperately poor people halfway around the world than pay Americans a decent wage to do the same thing. Gross.

 

[sw1tcher]

Indonesia is 7th largest economy if you consider the real GDP(purchasing power parity). Indonesia is much cheaper to live. There is a reason, highly regulated EU countries fall further down in real GDP. Is US willing to find a middle ground and be flexible. Can it reform itself to bring costs down? Look at the list, EU ranks pretty poorly in real GDP terms.

Real GDP (purchasing power parity)

www.cia.gov

Why does the U.S. need to reform itself when it's ranked #2 in terms of real GDP? It's higher than Indonesia. 🤔

 

[TechnoMonk]

They ran out of slave labor and need to find more. Just one more reason why Tim Cook has to go.

Wasn't all that long ago you could find a Mac Pro that was Made in USA. But Tim Cook's Apple would rather exploit desperately poor people halfway around the world than pay Americans a decent wage to do the same thing. Gross.

What slave labor? The one who works all his life to pay mortgages? Stop paying mortgage for couple months, see what happens. Or guys who work hard for 5-10 years, save money and buys land in his home town, and lives on his own for rest of his life. Many of the so called slave labor quit when Foxconn cut their Over time hours. Those guys want to make money quickly and go back to their villages. You see same in India, Vietnam and other countries.
People in the west on their high horse lecturing the world to be lazy, and live pay check to pay check.There are cases where people are exploited and that need to stop.

 

[Geoffb9]

Right which is why there’s no domestic auto manufacturing, oh wait…

I don't think you know how things work.

 

[TechnoMonk]

Why does the U.S. need to reform itself when it's ranked #2 in terms of real GDP? It's higher than Indonesia.

It is going to fall fast like EU, if the trend continues. There is something called as trend, reform and go up/maintain or fall fast.

 

[Fuzzball84]

Its inevitable… they need cheap labor for the workforce regarding manufacturing. As each country they manufacture in develops and matures its economy.. they move along to the next one in line.

Theycanonly bring so much manufacturing back to the west… manufacturing in the west requires either massive automation/minimal workforce or extremely high margins.. or a combination of the two.

 

[citysnaps]

Shame on Apple for not bringing manufacturing to the US.

Shame?

You may not be aware the infrastructure in the US simply does not exist.

 

[JoshuaBru]

apple looking to chew and spit out another distant underpaid workforce

How many Apple products do you own? If it’s more than zero you don’t really care that much lol

 

[citysnaps]

They ran out of slave labor and need to find more. Just one more reason why Tim Cook has to go.

Wasn't all that long ago you could find a Mac Pro that was Made in USA. But Tim Cook's Apple would rather exploit desperately poor people halfway around the world than pay Americans a decent wage to do the same thing. Gross.

Will you be voting with your wallet and purchase your phones and computers from Samsung and other Apple competitors?

 

[FineWoven]

I know the ideal is for Apple to move to the United States, but from a cost standpoint, that is highly unlikely. But wouldn't Mexico make more sense?

Yes I would think so. Many are unaware how quickly Mexico is becoming a major player in manufacturing. Based on what I've heard so far, I would not be surprised if they became essentially the China of the west by 2035 or 2040.

 

[FineWoven]

apple looking to chew and spit out another distant underpaid workforce

There are winners and losers in this world. Don't hate the players. Hate the game.

 

[Makosuke]

This is somewhat ironic because Apple's current presence in Indonesia is an absolute embarrassment.

They have no direct hardware sales, and the local Apple resellers that exist are poor at best. They more often than not sell hardware that's one or more versions behind current, current-generation hardware takes a long time to show up in stock and when it eventually does the prices are usually a huge markup (that last part, admittedly, may be due to Indonesia's protective tariffs). Plus the in-store shopping experience is, from what I hear, not at all good.

 

[TechnoMonk]

This is somewhat ironic because Apple's current presence in Indonesia is an absolute embarrassment.

They have no direct hardware sales, and the local Apple resellers that exist are poor at best. They more often than not sell hardware that's one or more versions behind current, current-generation hardware takes a long time to show up in stock and when it eventually does the prices are usually a huge markup (that last part, admittedly, may be due to Indonesia's protective tariffs). Plus the in-store shopping experience is, from what I hear, not at all good.

It’s more of a tariff issue, carrot and stick approach for the countries. Same issue when China started(Not Apple in china, but manufacturing), and India too. Want lower tariffs? Start manufacturing and you have access to our markets. Open up stores, sell it with lower or no tariffs.

 

[TechnoMonk]

Will you be voting with your wallet and purchase your phones and computers from Samsung and other Apple competitors?

Pretty much every one does the same. If US is serious about manufacturing, first build the components like chips, RAM, Storage, Cameras and so on. Assembly is final step.

 

[FineWoven]

Good. Idc really where they expand their manufacturing operations so as long as they work towards getting the hell out of China. I want to see that country squeezed to the point they can no longer get away with their ruthless tactics they use (or seem poised to use) on their neighbors and their own citizens alike.

 

[Jzvm]

lol Americans don't want to work manual labor.

We trained our labor force to work office jobs, which means work-from-home jobs now.

And those work-from-home jobs will soon be moved overseas as well.

 

[citysnaps]

Pretty much every one does the same. If US is serious about manufacturing, first build the components like chips, RAM, Storage, Cameras and so on. Assembly is final step.

The US is.

 

[haunebu]

Will you be voting with your wallet and purchase your phones and computers from Samsung and other Apple competitors?

People are already delaying their iPhone replacements for 2-3 years, sometimes longer, primarily because of cost and the lack of innovation in the space. My iPhone 12 Pro looks and works exactly like my iPhone 15 Pro, for example. Was it worth the upgrade cost for most people? Not really, but I happen to have the resources and wanted to be able to record spatial video. Most people don't care about that feature at all.

But a lot of people do look at the Samsung Galaxy S24 Ultra, or the Flip & Fold devices, which have genuinely innovative hardware and software features... and think about switching. You'll note that IDC just reported Apple lost the top smartphone manufacturing spot to Samsung on Monday this week. So, yes, it people are looking elsewhere now and the data shows it.

 

[citysnaps]

People are already delaying their iPhone replacements for 2-3 years, sometimes longer, primarily because of cost and the lack of innovation in the space. My iPhone 12 Pro looks and works exactly like my iPhone 15 Pro, for example. Was it worth the upgrade cost for most people? Not really, but I happen to have the resources and wanted to be able to record spatial video. Most people don't care about that feature at all.

But a lot of people do look at the Samsung Galaxy S24 Ultra, or the Flip & Fold devices, which have genuinely innovative hardware and software features... and think about switching. You'll note that IDC just reported Apple lost the top smartphone manufacturing spot to Samsung on Monday this week. So, yes, it people are looking elsewhere now and the data shows it.

But how about YOU? Will you be switching due to the "genuinely innovative hardware and software features?"

Regarding the iPhone 12 Pro and 15 Pro... Exactly like? Going to a 15 ProMax was a huge improvement for me. Especially regarding cameras and being a photographer. Better image quality, options, and no more annoying flare.

 

[Surf Monkey]

It's true that the U.S. has auto manufacturing, but it's also true that fewer and fewer Americans want to take factory/manufacturing jobs. So mozumder's point still stands.

Michigan auto industry struggles to hire, keep workers — with some quitting by lunch

Automakers and parts manufacturing are bleeding jobs as suppliers and carmakers struggle to hire and retain employees in factories. Is a fix on way?

www.freep.com

Small-town auto plants face challenge once hard to imagine: Finding workers

Automakers have strategically placed assembly plants in small-town America with the promise of attractive, well-paying jobs in low-cost areas. A weakness has been exposed in that once solid formula.

www.autonews.com

US factories are booming, but finding workers is still a struggle

Construction spending on US manufacturing has doubled from a year ago, though employment in the sector has lagged.

www.businessinsider.com

Understanding America’s Labor Shortage: The Most Impacted Industries

American businesses are creating hundreds of thousands of jobs each month, yet a significant number of positions still remain unfilled, especially in the professional and business service sector.

www.uschamber.com

They don’t want those jobs because they don’t pay enough. It’s not the labor that’s the problem. It’s the pay.

And as far as Apple chasing cheap labor goes, it’s a futile game that many companies are playing. But as these other nations become more affluent and their populations demand better working conditions and higher wages… you get the picture.

 

[Surf Monkey]

But how about YOU? Will you be switching due to the "genuinely innovative hardware and software features?"

Regarding the iPhone 12 Pro and 15 Pro... Exactly like? Going to a 15 ProMax was a huge improvement for me. Especially regarding cameras and being a photographer. Better image quality, options, and no more annoying flare.

Why work so hard to make it personal? Who cares if he personally switches or not? His points are valid regardless of what he does.