China’s “zero-Covid” policy is forcing companies to temporarily halt operations, causing disruptions in a supply chain that wasn’t optimal anyway. For the time being, Apple has skilfully circumvented the problem for the iPhone, even if it means putting pressure on the authorities keep a factory open.
But according to Ming-Chi Kuo, the company has implemented an “Action Plan” to diversify the production of new devices. The analyst reminds that the sites where the new products will be assembled are almost all located in China before being distributed to other places in the world (part of the AirPods are made in China VietnamI’India produces iPhone 13s…).
China: Restrictions don’t bother “iPhone City”.
The outbreak of the pandemic just over two years ago prompted Apple to reconsider its industrial tool, but so far it’s only been a reflection. Given the recent restrictions in China, Kuo writes that Apple has now activated this diversification project.
Apple doesn’t want to let go of China any time soon: The company invests hundreds of billions of dollars there and works very closely with Beijing to have a relatively free hand for its business there. Despite everything, the manufacturer doesn’t want to put all their eggs in one basket.
A 275 billion deal links Apple to China for 5 years
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