The “zero Covid” policy at work in China forces companies to temporarily suspend their activity, causing disruptions in a supply chain which was already not at its best. For the moment, Apple has cleverly circumvented the problem for the iPhone, probably even if it means putting pressure on the authorities to 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 recalls that the sites that assemble the new products are almost all based in China, before being distributed elsewhere in the world (part of the AirPods is manufactured in Vietnam, India produces iPhone 13, etc.).
China: confinements do not disrupt “iPhone City”
The outbreak of the pandemic a little over two years ago prompted Apple to rethink its industrial tool, but until now it was only a reflection. In light of the latest Chinese confinements, Kuo writes that Apple has now activated this diversification project.
Apple does not intend to let go of China anytime soon: the company is investing hundreds of billions of dollars there, and it is working very closely with Beijing to have a relatively free hand in order to conduct its business there. Despite everything, the manufacturer would not want to put all its eggs in one basket.
A 275 billion agreement links Apple to China for 5 years