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China seeking to cut off iPad supply
MacRumors ^ | 2/14/2012 | Eric Slivka

Posted on 02/14/2012 8:14:48 AM PST by Astronaut

Earlier this week, we noted that Chinese authorities had begun seizing iPad stocks from a small number of retailers over Apple's alleged infringement of a disputed "iPad" trademark. Apple claims that it purchased the Chinese rights to the trademark several years ago, but the original owner Proview and Chinese courts have disagreed with that assertion.

Bloomberg now notes that Proview is seeking to go beyond local enforcement and is asking Chinese customs officials to block both imports and exports of the iPad over the issue. With iPad production taking place in China, a successful bid by Proview could cut off Apple's supplies of the device throughout the world. “We are applying to customs to stop any trademark- infringing products from imports to China and also for exports,” said [Proview lawyer Roger] Xie, who is based in Shenzhen. “Apple wants to postpone and continue infringement of the iPad in China.” Calling a potential export ban "catastrophic" for Apple, one Chinese legal expert notes that pressure on Apple to settle the case has dramatically increased. A halt to exports from China would be “catastrophic” for Apple because it would mean a global halt to iPad sales, said Stan Abrams, an intellectual property lawyer and a law professor at the Central University of Finance and Economics in Beijing. The threat of an export ban increases the pressure on Apple to settle the case, he said.

“There’s got to be a settlement, and fairly soon,” Abrams said. “I can’t see how much more incentivized to settle Apple could be.” Apple continues to maintain that it acquired "worldwide" rights to the iPad in ten countries, including China, as part of an earlier deal. Apple's case is still pending with Chinese courts as it seeks to appeal earlier rulings.


TOPICS: Business/Economy
KEYWORDS: apple; redchina
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Apple used to have factories in America. Steve Jobs decided they would make more money outsourcing everything to the Red Chinese. Now the ChiComs are holding their most profitable product hostage. Bet Apple wishes they made them in California now!
1 posted on 02/14/2012 8:14:53 AM PST by Astronaut
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To: Astronaut

Hardball!


2 posted on 02/14/2012 8:19:05 AM PST by null and void (Day 1120 of America's ObamaVacation from reality [Heroes aren't made, Frank, they're cornered...])
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To: Astronaut
Ahhh, the benefits of lowest piece price based single sourcing!
3 posted on 02/14/2012 8:26:23 AM PST by Jack of all Trades (Hold your face to the light, even though for the moment you do not see.)
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To: Astronaut

After the bribes are paid,the slave labor factories will
back in business.


4 posted on 02/14/2012 8:30:58 AM PST by Dr. Ursus
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To: Astronaut

The worm has turned............


5 posted on 02/14/2012 8:38:38 AM PST by Red Badger (If you are unemployed long enough, you are no longer unemployed.)
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To: Astronaut
This could get interesting.

Apple is widely rumored to announce the new iPad 3 the first week in March. They usually start online pre-sales shortly thereafter.

6 posted on 02/14/2012 8:39:07 AM PST by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: Astronaut

Move production back to a Southern State... Texas would be a great place.

LLS


7 posted on 02/14/2012 8:45:27 AM PST by LibLieSlayer (Hey repubic elite scumbags... jam mitt up your collective arses!)
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To: Astronaut

Move production back to a Southern State... Texas would be a great place.

LLS


8 posted on 02/14/2012 8:45:48 AM PST by LibLieSlayer (Hey repubic elite scumbags... jam mitt up your collective arses!)
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To: Swordmaker

ping


9 posted on 02/14/2012 8:48:36 AM PST by LearnsFromMistakes (Yes, I am happy to see you. But that IS a gun in my pocket.)
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To: Astronaut

Ain’t outsourcing grand?


10 posted on 02/14/2012 9:25:05 AM PST by NoPinkos
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To: Jack of all Trades
Even with outsourcing I'm surprised that Apple didn't set up a second source factory just to keep China from screwing them.

This should serve as a warning sign to Treasury Secretary Geithner for what will happen to our trillion dollar deficit if the Chinese decide to cut off our whole country.

11 posted on 02/14/2012 9:33:18 AM PST by KarlInOhio (You only have three billion heartbeats in a lifetime.How many does the government claim as its own?)
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To: KarlInOhio
This should serve as a warning sign to Treasury Secretary Geithner for what will happen to our trillion dollar deficit if the Chinese decide to cut off our whole country.

Hahahahaha...
You might have been serious but that is funny. The Chinese economy would collapse, we would have to start making stuff here again, unemployeement would go down, and if China starting getting froggy we could just nationalize all of our debts towards them. You really think China is holding anything over our heads?

12 posted on 02/14/2012 9:47:20 AM PST by Durus (You can avoid reality, but you cannot avoid the consequences of avoiding reality. Ayn Rand)
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To: Durus

Do I think China would cut us off entirely? No. But I have no doubt that China would be more than willing to give the world currency markets a good thump to get their way on import quotas, tariffs, intellectual property rulings, interest rates or just making sure the Seventh Fleet is looking the other way when it comes time to invade Taiwan.


13 posted on 02/14/2012 9:59:51 AM PST by KarlInOhio (You only have three billion heartbeats in a lifetime.How many does the government claim as its own?)
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To: Astronaut
People are starting to look at that $100b cash that Apple has stashed away and looking for ways to "extract" it from them. This threat from China has "shakedown" written all over it and Apple having all their production over there gives them plenty of leverage.

My gut feeling is that Apple ends up settling this "trademark dispute" for a very significant chunk of their cash on hand. If Apple is as smart as I think they are, they start looking to build factories elsewhere.

14 posted on 02/14/2012 11:09:15 AM PST by SamAdams76 (Rick Santorum for President - 2012)
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To: LibLieSlayer
Move production back to a Southern State... Texas would be a great place.

Apple makes the A5 cpu for the iPad in Austin, Texas. I saw the plant last week. Austin would be a great place to expand the number of iPad components made in the USA.

15 posted on 02/14/2012 1:10:58 PM PST by roadcat
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To: SamAdams76

Dont give Al Sharpton any ideas.


16 posted on 02/14/2012 1:15:15 PM PST by Astronaut
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To: roadcat

I agree.

LLS


17 posted on 02/15/2012 4:17:32 AM PST by LibLieSlayer (Hey repubic elite scumbags... jam mitt up your collective arses!)
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To: Astronaut

The “Chinese Tariff”....


18 posted on 02/15/2012 4:18:58 AM PST by mo
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To: Astronaut

Ask Whitney Houston what crack does.... Now look at those numbed out idiots whose iPad is their crack. Just nuke all that stuff and take us back to an America of full employment, no trade deficits and humming factories. Go back 25-30 years and nuke all these masturbatory electronic devices as a trade. I would go for it in a split second


19 posted on 02/15/2012 4:26:10 AM PST by dennisw (A nation of sheep breeds a government of Democrat wolves!)
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To: Astronaut

COMMENCE THE TRADE WAR

America First!

20 posted on 02/15/2012 4:30:39 AM PST by Cringing Negativism Network ("Free trade" is destroying America)
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To: dennisw
Go back 25-30 years and nuke all these masturbatory electronic devices as a trade. I would go for it in a split second

Is it too early for me to detect the sarcasm, or do you really want to go back to a pre-internet, and pre-Free Republic, society?

21 posted on 02/15/2012 4:47:50 AM PST by Pilsner
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To: KarlInOhio

I agree. It looks like a major supply chain management oops. An iPad is basically 10 electronic sub assemblies plugged together and stacked in a case. Everything that supports its production - silicon and PC board fab, assembly and test are commodity resources available everywhere. It’s not like they have millions of dollars tied up in one-off precision tooling.

Hind sight is always 20/10, but it would have been wise to be prepared to turn on production in another location in a heartbeat.


22 posted on 02/15/2012 5:27:46 AM PST by Jack of all Trades (Hold your face to the light, even though for the moment you do not see.)
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To: Pilsner

Of course I would go back 30-40- years ...America was much better back then in a thousand ways. America was much better put together. America was more functional and producing with less emphasis on consumption.


23 posted on 02/15/2012 10:14:40 AM PST by dennisw (A nation of sheep breeds a government of Democrat wolves!)
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To: Pilsner

Of course I would go back 30-40- years ...America was much better back then in a thousand ways. America was much better put together. America was more functional and producing with less emphasis on consumption.


24 posted on 02/15/2012 10:15:03 AM PST by dennisw (A nation of sheep breeds a government of Democrat wolves!)
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To: Astronaut

How does it feel to have all your eggs in the ChiCom basket, Apple?


25 posted on 02/15/2012 10:17:38 AM PST by SharpRightTurn ( White, black, and red all over--America's affirmative action, metrosexual president.)
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To: ~Kim4VRWC's~; 1234; Abundy; Action-America; acoulterfan; AFreeBird; Airwinger; Aliska; altair; ...
Proview MFG., a small, wholly owned mainland Chinese manufacturing subsidiary of Proview, Inc., a Taiwanese LCD manufacturing company that sold Apple the worldwide rights to its Ipad trademark in 2009, claims that it did not agree to the sale made by Proview Inc.—the company that OWNED it, and owned the trademark rights to iPad—even though they had no ownership interest in the trademark... so, they claim, the rights are still theirs in China, even though they have never made an iPad product, sold an Ipad product, or used the trademark "Ipad" in China. So the subsidiary is disputing the Trademark that their wholly owning owners, the company that OWNS THEM, and the Trademark, have already sold!—PING!


Apple being fraudulently sued for using something they OWN Ping!

Please, No Flame Wars!
Discuss technical issues, software, and hardware.
Don't attack people!
Don't respond to the Anti-Apple Thread Trolls!
PLEASE IGNORE THEM!!!

If you want on or off the Mac Ping List, Freepmail me.

26 posted on 02/15/2012 11:40:04 PM PST by Swordmaker (This tag line is a Microsoft product "insult" free zone.)
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To: KarlInOhio
Even with outsourcing I'm surprised that Apple didn't set up a second source factory just to keep China from screwing them.

Apple is making iPads and iPhones in Brazil as well.

27 posted on 02/15/2012 11:48:24 PM PST by Swordmaker (This tag line is a Microsoft product "insult" free zone.)
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To: SamAdams76
My gut feeling is that Apple ends up settling this "trademark dispute" for a very significant chunk of their cash on hand. If Apple is as smart as I think they are, they start looking to build factories elsewhere.

Why? They own the worldwide rights to the name, purchased from the company's owner. At worst they change the name of the iPad in China... or don't sell them there under that name.

28 posted on 02/15/2012 11:50:54 PM PST by Swordmaker (This tag line is a Microsoft product "insult" free zone.)
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To: Jack of all Trades
I agree. It looks like a major supply chain management oops. An iPad is basically 10 electronic sub assemblies plugged together and stacked in a case. Everything that supports its production - silicon and PC board fab, assembly and test are commodity resources available everywhere. It’s not like they have millions of dollars tied up in one-off precision tooling.

No, they are not. Show me another manufacturer making iPads... Apple subsidized the building of the factories

29 posted on 02/15/2012 11:58:38 PM PST by Swordmaker (This tag line is a Microsoft product "insult" free zone.)
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To: nutmeg

bookmark


30 posted on 02/16/2012 12:01:02 AM PST by nutmeg
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To: Astronaut

Cheers!

31 posted on 02/16/2012 3:00:13 AM PST by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: dennisw
We would have had NONE of these problems if Truman had nuked Stalin back in '46 when he had the chance.

Cheers!

32 posted on 02/16/2012 3:08:58 AM PST by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: Swordmaker

Another good reason to pull production back to the US.


33 posted on 02/16/2012 4:05:01 AM PST by SunkenCiv (FReep this FReepathon!)
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To: dennisw

“masturbatory electronic devices”

In public too! Have they no shame?


34 posted on 02/16/2012 4:24:49 AM PST by Rebelbase
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To: Swordmaker

I don’t understand your comment. Apple chose a single source so by definition, there is only one manufacturer.

My point is that the process is highly transportable unlike a precision mechanical assembly where you can have very long lead time items like complicated robotic assembly lines, and manufacturing processes that require significant knowledge transfer when they move.

Pretty much every contract electronics manufacturer in the world is already set up to stack a bunch of parts into a case and to an end of line test. The Tooling (bills of material, PCB artwork etc) can be transferred in an email. The gating item in setting up another source for iPads would probably be component lead times.


35 posted on 02/16/2012 5:49:16 AM PST by Jack of all Trades (Hold your face to the light, even though for the moment you do not see.)
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To: Astronaut

When Apple switched screen materials for the iPhone, Foxconn roused 8,000 workers in the middle of the night, fed them biscuits and tea, and led them to the assembly line to make the last-minute change while maintaining a target delivery date.

Do you really think unionized US labor could pull this off?


36 posted on 02/16/2012 6:02:11 AM PST by antiRepublicrat
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To: Jack of all Trades
Pretty much every contract electronics manufacturer in the world is already set up to stack a bunch of parts into a case and to an end of line test. The Tooling (bills of material, PCB artwork etc) can be transferred in an email.

There is the problem of all those CNC milling machines for the aluminum cases. Not many electronics manufacturers have those set up for production. I believe Apple's parts makers such as Foxconn are the only ones using it on such a large scale. And with Apple's investment they bought up much of the world production of such machines for a while, so it would be hard for anyone else to get up to speed very quickly.

37 posted on 02/16/2012 6:14:35 AM PST by antiRepublicrat
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To: KarlInOhio

This is just one little company being greedy and stupid. China loves Apple manufacturing there and would not want to lose it.


38 posted on 02/16/2012 6:15:28 AM PST by antiRepublicrat
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To: roadcat
Apple makes the A5 cpu for the iPad in Austin, Texas.

Micron makes various sorts of memory in Manassas, Virginia ... if Apple's overseas suppliers get froggy, there ARE alternatives.

39 posted on 02/16/2012 6:21:00 AM PST by ArrogantBustard (Western Civilization is Aborting, Buggering, and Contracepting itself out of existence.)
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To: antiRepublicrat

When Apple made things in America, were their factories unionized? I don’t know for sure, but I don’t think so.


40 posted on 02/16/2012 7:03:34 AM PST by Astronaut
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To: antiRepublicrat

things have changed today a lot of people have been out of work and I for one would be happy to pull that off!


41 posted on 02/16/2012 8:09:13 AM PST by television is just wrong
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To: grey_whiskers

Stalin Wasn’t Stallin’


42 posted on 02/16/2012 9:19:07 AM PST by dennisw (A nation of sheep breeds a government of Democrat wolves!)
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To: dennisw

And of course you’ll get off of your computer too...


43 posted on 02/16/2012 9:47:59 AM PST by brytlea (An ounce of chocolate is worth a pound of cure)
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To: grey_whiskers
We would have had NONE of these problems if Truman had nuked Stalin back in '46 when he had the chance.
And how many nukes did we have in 1946? Did we even have one? That was a very deep, dark secret.

44 posted on 02/16/2012 10:58:49 AM PST by conservatism_IS_compassion (DRAFT PALIN)
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To: conservatism_IS_compassion
And how many nukes did we have in 1946? Did we even have one? That was a very deep, dark secret.

That's a very good question! I remember reading that we used up all our fissile material for the test bomb and the two we dropped on Japan, and it was a big secret that we didn't have another bomb in 1945 despite threatening the Japanese with further bombings. As for 1946?

45 posted on 02/16/2012 12:50:19 PM PST by roadcat
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To: dennisw
Just nuke all that stuff and take us back to an America of full employment, no trade deficits and humming factories. Go back 25-30 years and nuke all these masturbatory electronic devices as a trade. I would go for it in a split second

You should go for Castor Oil instead as you are full of it.. You have an unhealthy abhorrence of anything Apple.

Much of the world's supply of many things comes from China. The problem is here, not there. Were we to modernize our tax code and government regulations while defanging unions the manufacturing would return on its own.

Despite what the Occupy groups say, most entrepreneurs aren't stupid and greedy. What/where did your group occupy?

46 posted on 02/16/2012 1:01:50 PM PST by Mind-numbed Robot
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To: brytlea
And of course you’ll get off of your computer too...

Not  a problem throw all the PCs and laptops in the ocean this would not bother me. Life in America was much better before we had them. Ronald Reagan 1980-1988..... Few people has PCs back then. No internet. No effin cell phones to chat away all day on. No DVDs and we got along just fine...much better than today.

47 posted on 02/16/2012 3:16:14 PM PST by dennisw (A nation of sheep breeds a government of Democrat wolves!)
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To: Mind-numbed Robot

I am a realist. You are a surrealist Dadaist iPad fanboi gadget worshiping mutant


48 posted on 02/16/2012 3:18:50 PM PST by dennisw (A nation of sheep breeds a government of Democrat wolves!)
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To: Mind-numbed Robot

49 posted on 02/16/2012 3:21:42 PM PST by dennisw (A nation of sheep breeds a government of Democrat wolves!)
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To: dennisw
all these masturbatory electronic devices

+1

50 posted on 02/16/2012 3:25:21 PM PST by Revolting cat! (Let us prey!)
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