Apple's Manufacturing Moves Away From China are a Drop in the Ocean
upstart writes:
Apple's manufacturing moves away from China are a drop in the ocean:
Matching the scale of Chinese operations is a gargantuan task even for the world's most valuable company.
Production centers are popping up in Mexico, India, Vietnam, as well as the US, according to a new report in the Wall Street Journal, which cites a recent list of suppliers released by Apple. But no country can yet match the scale of operations Apple built in China, and that presents risks for the Cupertino giant.
Operations in China have suffered because of heightening geopolitical tensions. More recent pandemic-induced lockdowns and squeezed supply chains have made diversify production even more important for the American firm.
Why Apple needs to detach from China:
- China's "covid zero" strategy is inviting a string of uncertain lockdowns. Apple's partner in Guiyang, which operates the server center that houses all online data generated and stored by hundreds of millions of Chinese iPhone users, barred employees from leaving the premises.
- Apple, which paused sales in Russia after the country invaded Ukraine, might be reconsidering its ties to countries ruled by autocrats.
- Dissociating from China is politically advantageous for Apple's image at home, where president Joe Biden recently signed a law assigning $50 billion direct aid for building semiconductor plants in the US.
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