Apple wants to reduce its manufacturing reliance on China

TFI Securities analyst Ming-Chi Kuo said that due to the constant quarantines in China, Apple has started to actively plan to diversify its supply chain and transfer production to other countries.

Chinese closures negatively affect production

As you know, at the end of March, Chinese authorities quarantined in most major cities due to a new COVID-19 outbreak started. The shutdowns also directly affected several Apple suppliers, who were forced to indefinitely halt production of MacBooks and other Apple products.

Kuo said that Apple has started to seriously consider establishing production facilities outside of China in early 2020, but the company has only now entered the pre-diversification stage. Apple is reportedly considering supplier factories in India and Taiwan first. More detailed information on the subject is expected to emerge in the coming period.