Apple manufactures a massive number of its technology in China, and it shows a heavy reliance on the Asian country for the many devices it brings to the public. In the devices from the Cupertino giant, it says, "Designed by Apple in California; Assembled in China," which says a lot about the technology that Apple has and its manufacturing preferences.
Now maybe the time for changes, as delivery problems might affect its revenue.
Apple Might Expand its Manufacturing Outside China for a Change
Mark Gurman's latest report (via Bloomberg) talked about Apple's overdependence on China, and it mentioned the many implications that will happen for its continued reliance on the country. China has experienced many lockdowns that kept the country containing its many cases of COVID, and it also affected the supplies of its technology.
The latest Apple investors call released last week talked a lot about the many achievements of the company in its releases and the technology it brings to the world.
It also detailed the many plans of the company for expanding more of its manufacturing outside China and it is to change the many implications it will bring if it keeps it up.
Apple to Lose $8 Billion Due to Supply Shortages
According to Gurman, the company noted that there would be losses due to its reliance on China for its manufacturing and other components, especially with the supply shortages due to the country's lockdown. Nevertheless, Tim Cook said that Apple is genuinely global, with its manufacturing also taking place in different countries soon expanding.
Apple's move to expand to other countries might help with its expected $8 billion revenue loss if it keeps up the reliance on China, especially now that the government is experiencing yet another surge.
Apple and China's Relationship
Apple has a massive reliance on China regarding its global supplies and manufacturing of the many devices available in the lineup of the Cupertino tech company Steve Jobs. The Apple company is an all-American brand, but it relies on China for manufacturing, seen by the world last 2020 with the iPhone 12 production.
In the recent spikes in the COVID-19 cases globally, China is yet again a country that showed massive infection numbers that resulted in lockdowns. It also affected Apple's manufacturing as one of the companies it partnered with called Pegatron stopped its production in Shanghai temporarily due to the massive cases.
It is only one of the many partner companies by Apple in China, and others focus on internal parts and supplies that it needs for its manufacturing. The heavy reliance it has now on China will only be a downside of the company, as said in its recent investors' call and showcase that focuses on its company's interests.
Information on its expansion to other manufacturing options is allegedly open.
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Written by Isaiah Richard
