Apple is rushing to ramp up production of its products outside of China, according to the Wall Street Journal, in a bid to lessen dependence on the nation, where strict Covid restrictions have disrupted business.
Apple has informed some of its China-based assemblers about its ambitions, according to the Journal, and mentioned resources with the discussions.
The company would choose Vietnam or India as countries in which to increase production, although political tensions between Beijing and New Delhi may make it difficult to install Apple’s Chinese subcontractors in India.
China has long been Apple’s production hub, with factories generating more than 90 of the company’s core products, including iPhones, MacBooks and iPads, the Journal reported, referring to analysts.
Apple did not respond to a request for comment from Forbes.
A resurgence of Covid in China has led the country to reinstate strict lockdowns that necessarily confine citizens to their homes for long periods of time. the coronavirus, and has led to complaints about whether lockdown measures are mandatory or even humanitarian. Its Covid technique has led to safeguards in the chain of origin, especially for products transiting through the densely populated port city of Shanghai. Western corporations have also recently stepped up their efforts to distance themselves from China in the face of the country’s reluctance to condemn Russia’s invasion of Ukraine and the forced detention of Uighurs in Xinjiang.
$8 billion. Here’s how Apple’s sales may fall due to supply chain shortages caused primarily by Covid lockdown policies in China, the company said on a conference call in the last quarter of last month.
Apple Seeks to Increase Production Outside china (Wall Street Journal)
Apple’s over-reliance on China on an $8 billion supply chain challenge (Bloomberg)
Lockdown Lesson from Successful American Businessman in Shanghai: Don’t Take Your Freedom For Granted (Forbes)
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