China's "factory of the world" days are over: it's a very heavy phrase, but if it's the CEO of the largest and most important consumer electronics manufacturer in the world to say it, it's worth listening to. The ongoing trade war between China and the United States is starting to have concrete repercussions: Foxconn is slowly but surely increasing its production capacity abroad – in the last year it has gone from 25% to 30%, and has no intention to change course. "Whether it's India, Southeast Asia or the Americas, there will be a manufacturing ecosystem everywhere," said Young-Way Liu.
It is certainly not the first time that we have reported the expansion of the factories of the big tech giants from outside China – also because the hostilities between the Washington and Beijing governments have been going on for some time now. But no one of such importance had yet ever dared to frame the situation so categorically. Of course, China is likely to remain a key component of the industry for a long time to come (and Foxconn also agrees), but the idea of "putting all your eggs in one basket", as they say, no longer works. We need more flexibility, more ability to adapt quickly to the changing global geopolitical situation. It will not be a quick or easy transition, because China has been investing and working for years to achieve its current status.
In any case, Foxconn is back in shape: the previous quarter had suffered a moderate setback due to the coronavirus emergency, but turnover and net profits returned to positive, especially thanks to the increase in demand for iPad and MacBook. However, another major decline is expected in the quarter to come, due to the delay of the new generation iPhones, which Apple has already confirmed.
Apple's smallest TOP of the range? Apple iPhone SE, on offer today by Mobzilla for 401 euros or from Media World for 479 euros.