Slower than Samsung in Vietnam, Apple is losing because of trade war - Vietnam News

Samsung has been in Vietnam since its presence in Vietnam for nearly 20 years since 1996, by the end of 2014, Samsung has invested in Vietnam with a total amount of 12.6 billion USD.

Vietnam News




Vietnam News According to Morgan Stanley's report, the 25% tax imposed by Trump for $ 200 billion of manufactured goods in China could cost an extra $ 160 for an iPhone XS (sold for $ 999).


The escalating trade conflict between the United States and China will almost certainly hurt Apple and its customers through the cost of iPhone being pushed up and causing stock prices to fall.

Tariff costs for consumers are also not easy to calculate, because the 25% tax rate can be applied to components, not finished products. (Apple AirPods and Apple Watch are exempt from additional tax).

Perhaps, if you try, Apple can still protect consumers from price increases, but stock prices are hard to save. On May 13, concerns about trade disputes pushed the stock down nearly 6% to $ 186, the biggest decline of Apple shares since 2013. Apple shares have fallen by 11% since first month.

IPhone shipments to North America, Apple's largest market, fell 19% in volume to 14.6 million units in the first 3 months. Tariffs may also affect iPhone sales in China, where Apple accounts for 7.4% of the market and has seen sales drop 25% in the past 6 months. On May 13, China announced plans to apply a 25% tax on 2,493 US products, starting on June 1.


President Donald Trump accused China of supporting an agreement with US trade officials and tweeted a warning that China should not retaliate - it would only make the situation worse!

Stress has a strong impact on US stocks, causing Dow Jones to lose 617 points at the end of the session. Apple and Boeing are two of the most affected stocks. In a research note, Goldman Sachs said the clash between the US and China could further increase consumer prices and affect US economic growth.















See more: Vietnam's economy is very stable


Unlike Samsung, which distributes factories in many different countries, Apple uses China's supply chain for all its products, from iPhones to iPads and Macbooks. While Apple is now starting to find ways to relocate factories, Samsung soon has 3 factories in Vietnam - the country is expected to benefit most from trade war with production costs. low and a stable politics. Moreover, trade agreements make Vietnam's export industries particularly beneficial, including manufacturing and assembly industries.


Samsung has been in Vietnam since its presence in Vietnam for nearly 20 years since 1996, by the end of 2014, Samsung has invested in Vietnam with a total amount of 12.6 billion USD. And if so far, Samsung has invested about $ 9.5 billion in Vietnam since 2007. Samsung produces more than 150 million smartphones at its factories in Bac Ninh and Thai Nguyen provinces.

Samsung currently cooperates with 35 "level 1" domestic suppliers. This year, they are sourcing to raise 42 suppliers, and this number is expected to increase to 50 by 2020.

Mr. Trump has urged companies to return to their operations in the US or at least move away from China. In terms of both geographical distance and cost, Vietnam is still a good choice. But analysts say, for Apple, the move from Hon Hai Precision Industry, a division of the giant FoxConn manufacturing group, will be time-consuming and extremely difficult. Perhaps this time, Apple has been slower than Samsung in Vietnam.

According to Gene Munster of Loup Ventures, Apple has considered moving some supply chains out of China. But although it is possible to create a backup plan for suppliers, the assembly process will be much more difficult to replicate.

"When Apple thinks about its business, they think about a 10-year long-term increase. Therefore, it is reasonable for them to have other phone manufacturers and assemblers that don't just focus. into China ".
 
  From Vietnam

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Breaking Vietnam news | Vietnam's #1 News Site | Viet-News.com: Slower than Samsung in Vietnam, Apple is losing because of trade war - Vietnam News
Slower than Samsung in Vietnam, Apple is losing because of trade war - Vietnam News
Samsung has been in Vietnam since its presence in Vietnam for nearly 20 years since 1996, by the end of 2014, Samsung has invested in Vietnam with a total amount of 12.6 billion USD.
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