FX.co ★ Souring US-China relations may boost Apple prices

According to the Bloomberg agency, citing competent sources, the largest companies that assemble Apple products, including Foxconn and Pegatron, have started to move their production outside China. Such a move could be explained by a new round of deterioration in relations between the United States and China.

Currently, most of the factories that assemble Apple devices operate in China. However, the industry may soon face some changes. The fact is that these companies are moving to a less centralized production system.

These innovations are gradually bringing positive results. According to the authoritative periodical, Forbes, the number of companies assembling Apple products has quadrupled in Vietnam over the past 10 years. In addition, Vietnam attracts technology manufacturers with tax incentives, free land leases, and the positive attitude of local authorities.

At the moment, companies such as Foxconn, Pegatron, and Samsung Electronics have production facilities in Vietnam. Meanwhile, China's Goertek, which makes AirPods headphones, and BYD, which owns an iPad assembly facility, operate in the north of the country.

In 2022, the electronics industry accounted for 32% of Vietnam's exports, almost two times more than 10 years ago. According to Sonal Varma, an economist at Nomura Holdings, such an opportunity cannot be missed by any country. The expert considers the current strategy correct from an economic point of view and calls it a potential growth factor.