Daily Management Review

Apple to reduce dependence on manufacturing in China


Apple told several of its gadget manufacturing partners that it would like to increase production of its goods outside China. Now it accounts for 90% of the company's devices.

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Apple wants to reduce its dependence on manufacturing in China and has told its partners that it wants to increase production outside of that country, The Wall Street Journal wrote, citing sources.

Some of Apple's global manufacturing is in India and Vietnam, countries that the company is eyeing at the moment, the newspaper said. Meanwhile, China now accounts for 90 percent of Apple's output, including its iPhone smartphones, iPad tablets and Mac computers, the WSJ noted, citing analysts. Apple's high dependence on China is a potential risk, given politics of the country and its confrontation with the U.S., the paper added. 

One of the reasons Apple is thinking seriously about diversification is Beijing's zero tolerance policy toward the coronavirus, WSJ sources said. China sent entire cities, including Shanghai, to quarantine in the spring because of outbreaks. In April, several factories that manufacture Apple devices, including Foxconn, a major Apple supplier, were suspended because of the outbreak.

source: wsj.com