Home NEWS Apple CEO Tim Cook visits Vietnam as US tech giant’s supply chain shift stirs unease in China

Apple CEO Tim Cook visits Vietnam as US tech giant’s supply chain shift stirs unease in China

by vergexpress

Apple chief government Tim Cook dinner has kicked off his two-day go to to Vietnam, because the US tech large’s efforts to diversify its provide chain comes into focus once more, simply weeks after the CEO concluded a tour within the firm’s key market of China.

On Monday, Apple introduced on its Vietnam web site that it will “enhance spending on suppliers” within the nation, including that such expenditure has reached almost 400 trillion Vietnamese dong (US$16 billion) since 2019.

The pledge comes three weeks after Cook dinner wrapped up his go to to China, which stays Apple’s largest manufacturing base. Throughout his time there, Cook dinner praised the nation’s provide chain as being probably the most “important” on the earth and promised that the agency would preserve investing in analysis and growth, in addition to the availability chain in China.
He additionally attended the high-level China Growth Discussion board, the nation’s reply to the World Financial Discussion board’s summit in Davos, Switzerland, the place he lauded the “big contribution” that Chinese language suppliers have made to the iPhone maker’s carbon-neutral objectives.

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Regardless of Cook dinner’s reassurance, some Chinese language web customers expressed their uneasiness about Apple shifting a few of its manufacturing to nations corresponding to Vietnam and India.

One Weibo consumer referred to as “eddzccy” commented on a publish about Cook dinner’s Vietnam go to with a three-lemon emoji, which symbolises jealousy. One other consumer named “Renkongzhineng” sarcastically referred to Cook dinner as a “grasp of selling”.

Vietnam has emerged in recent times as some of the necessary manufacturing hubs of Apple, with suppliers together with Luxshare Precision Business, Goertek and Foxconn Know-how Group, formally generally known as Hon Hai Precision Business, all having operations there.

The US has strengthened its relationship with Vietnam amid rising tensions between Washington and Beijing. In a go to to the Southeast Asian nation final September, US President Joe Biden introduced an elevated “complete strategic partnership” with Vietnam.
Nonetheless, Apple has doubled down on quite a lot of initiatives in mainland China, the world’s largest smartphone market, the place iPhone gross sales fell 24 per cent 12 months on 12 months within the first six weeks of the 12 months, in keeping with market consultancy Counterpoint.
The corporate faces “stiff competitors on the excessive finish [of the market] from a resurgent Huawei [Technologies], whereas getting squeezed within the center on aggressive pricing by the likes of Oppo, Vivo and Xiaomi”, stated Counterpoint.

Apple stated in March that it deliberate to increase its analysis centre in Shanghai and open a brand new laboratory in Shenzhen later this 12 months.

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