Korean media: Apple does not disperse the production line, but it is wrong to Samsung

The implementation of the US tariff policy is getting closer, and Apple CEO Tim Cook proposed to US President Trump that Samsung Electronics will not have to pay tariffs to gain a competitive advantage. A number of Korean media slammed, Apple deliberately involved Samsung Electronics into Sino-US trade disputes, and the future may also affect US policy toward Samsung Electronics.

Due to the intensified trade dispute between China and the United States, the US government will charge a 10% tariff on 300 billion US dollars of Chinese products. Although this is Trump's policy for China, Apple's iPhone is assembled in China through Foxconn, and it is also inevitable.

According to News1, US President Trump said on the 18th (local time) on the runway at Morristown Airport in New Jersey that Tim Cook (Apple CEO) is concerned that Samsung Electronics does not need to pay Chinese tariffs. Will take advantage of the competition.

Trump also went on to say that the claim was quite convincing, and that for Apples paying customs duties, competition with companies that did not pay customs duties was quite unfavorable.

The Korean media "news1" and "Korean economy" accused that Cook not only did not attack the US government, but instead used the global smartphone competition to try to bring Samsung Electronics into the tariff storm. "News1" even compared Apple to the report. Alternate water ghosts.

In fact, although Apple's market share is lower than Samsung Electronics, it is one of the best in terms of profit creation. Apple's iPhone, Macbook and other products are manufactured by OEMs such as Foxconn in China, which greatly reduces manufacturing costs.

However, the US government is about to impose tariffs on Chinese products, and Apple is forced to relocate the factory. Foreign media "CNBC" reported that Apple is studying to transfer 30% of its factories in China to Southeast Asia, but has not yet announced a definite plan.

The US Trade Representative Office (USTR) has recently postponed tariffs on mobile phones, notebook computers, video game equipment and other electronic products, as well as some toys, footwear and apparel, to December 15 on the grounds of boosting end-of-year consumption.

Samsung shifts production line to Southeast Asia and enjoys duty-free

In contrast, Samsung Electronics has a diverse production line. In addition to China, Samsung Electronics also produces smartphones in countries such as Korea, Vietnam, India, Indonesia, and Brazil.

Samsung Electronics has shifted its production line to places like Vietnam where labor costs are lower, and most of them are currently making mobile phones in Vietnam and India. Together with the World Trade Organization (WTO) Information Technology Agreement (ITA), smartphones manufactured with this strategy enjoy zero-tariff concessions.

It is widely believed that if Apple can disperse the production line earlier, it can avoid tariffs like Samsung Electronics. On the other hand, Cook’s move also caused many Koreans to rebound, thinking that Apple should be resisted.