Apple is accelerating plans to move production out of China as protests and riots intensify in response to zero-Covid policies, report says
The turmoil's impact on Apple's bottom line has led to a sense of urgency to diversify production away from China, which has long dominated manufacturing for the company. However, the economic slump and slowed hiring is proving challenging to outsource production and forge partnerships with new suppliers, the Journal reported.
"Finding all the pieces to build at the scale Apple needs is not easy," Kate Whitehead, a former Apple operations manager and owner of a supply-chain consulting firm, told the WSJ. According to the Journal, Apple plans to source up to 45% of iPhone production from factories in India, where it currently manufactures in just the single digits, and to ramp up manufacturing of products like computers, watches, and AirPods in Vietnam.
"This last month in China has been the straw that broke the camel's back for Apple in China with the head-scratching zero-Covid policy untenable with major strategic changes ahead for Cupertino in this key region," Ives Wedbush Securities analyst Daniel Ives wrote in a note to clients. Subscribe to push notifications
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