According to the report, Apple is looking to expand production outside of China in line with China’s zero-coronavirus policy.

  • The WSJ reported on Saturday that Apple is exploring ways to expand its production capacity outside of China.
  • The tech giant cited Beijing’s stringent COVID-19 policy as one influencing factor.
  • Analysts estimate that China’s contract suppliers manufacture nearly 90% of Apple’s products.

The Wall Street Journal reports that Apple is exploring ways to expand production outside of China. The tech giant cited Beijing’s zero-coronavirus policy as one reason for the reported push, a source close to the matter told the outlet.

Analysts estimate that about 90% of Apple’s products are made by Chinese subcontractors, and the tech giant’s success is vulnerable to the whims of the CCP.

Throughout the COVID-19 pandemic, Apple vendors like Foxconn have had to shut down due to growing cases. Earlier this month, Quanta Computer, which makes three-quarters of Apple’s MacBook products, was shut down despite maintaining a “closed-loop” campus designed to prevent the spread of the virus. Reuters reported

Apple is now telling suppliers that it wants to expand production in India and Southeast Asia, according to an anonymous source in the journal. Apple did not immediately respond to Insider’s request for comment.

Apple CEO Tim Cook said in his late April earnings report that the last quarter experienced two supply restrictions that affected Apple’s ability to meet consumer demand. Epidemic disruption and industry-wide silicon shortages. Apple CFO Luca Maestri estimates supply chain constraints to reach $4 billion to $8 billion in the quarter ending June 30.

“We are delighted to welcome our employees back to our US and European offices,” Cook told analysts. “We are also monitoring the coronavirus-related disruptions in China.” “Our thoughts are with everyone in the path of the virus, and we are still committed to doing our part to protect people and their communities.”

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