Apple Wants Suppliers to Explore Major Shift From China: Nikkei

The transcript discusses the potential shift of 15-30% of production capacity from China to Southeast Asia, as reported by Nikkei. It explores how major tech companies, particularly Apple, might respond to US-China tensions by evaluating cost implications. The discussion highlights Apple's reliance on Chinese manufacturing and the potential impact on its revenue, especially from the US market. It also considers the possibility of Chinese regulatory retaliation if Apple reduces its supply chain presence in China.

What percentage of production capacity is being considered for a shift from China to Southeast Asia according to the Nikkei report?

• 35 to 50%

• 25 to 40%

• 15 to 30%

• 5 to 10%

What is a significant factor that might influence Apple's decision to shift production capacity?

• Labor costs in Southeast Asia

• Availability of raw materials

• Technological advancements

• US-China relations

What percentage of Apple's revenue comes from the US?

• 20%

• 50%

• 30%

• 40%

How might a shift in Apple's production affect its iPhone sales in the US?

• Decrease in sales

• No change in sales

• Sales will depend on import duties

• Increase in sales

What could be a potential response from Chinese regulators if Apple shifts part of its supply chain out of China?

• Increase subsidies for Apple

• Reduce taxes on Apple products

• Impose retaliatory measures

• Encourage more Apple stores