Apple, Google, Microsoft will be leaving China.
According to the recent data China is the World's Production Hub but things can change in the foreseeable future because of the current COVID-19 outbreak. This pandemic has severely injured the global business chains. Some of the world's largest companies (apple, google, microsoft) are planning to move their production units from China
Samsung, the world renowned South Korean company has decided to move their production units to Vietnam.
According to Nikkei Asian Review Report, Google and Microsoft will shift their production faster due to virus.
Apart from the virus another reason due to which these companies are turning their backs is because of the trade war going between U.S and China.
Google and Microsoft are currently trying to move their smartphone, P.Cs and other gadgets' production to Vietnam and Thailand.
(they must be jumping with joy....hahahaha)
Google:-
- Pixel phone production is currently shifting to Vietnam.
- They are also moving the Nest Wifi internet router manufacturing to Taiwan.
Microsoft:-
- Microsoft also looking to begin the production of its tablets and personal computers in northern Vietnam in the second quarter of this year at the earliest.
Apple:-
- Apple is asking their suppliers to look into moving 15% to 30% of production from China to other parts of South East Asia.
WILL IT BE THAT EASY TO MOVE AWAY FROM CHINA ?
Even if these companies take away their production units from china they will still have to ship some components of the gadgets from China like the modules.
(60% modules are produced in China)
No other country has the supply of labor as China, they have quite large amount of skilled labor.
SOME GOOD NEWS :-
The iPhone makers (Foxconn) are thinking of shifting their manufacturing to India, from China. (but it's unlikely as it is the world's largest electronics workshop and China would not give it up easily).
data credits:- Study IQ youtube channel
Cheers To Knowledge.
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