The Wall Street Journal reported Saturday that Apple is looking to expand production outside of China. Sources close to the matter told the outlet that the tech giant cited Beijing's zero- Covid policy as one reason for the push.
According to analysts, Apple is vulnerable to the Chinese Communist Party because most of its products are made by contract manufacturers in China.
Due to rising cases, Apple suppliers have been forced to shut down. The campus designed to prevent the spread of the virus was shut down by Quanta Computer, which makes three-quarters of Apple's MacBook products.
According to the Journal's anonymous sources, Apple wants to expand production in India and Southeast Asia. Apple did not reply immediately.
On an earnings call in late April, Apple CEO Tim Cook said the company experienced two supply constraints last quarter that impacted their ability to meet consumer demand. Luca Maestri estimated supply chain constraints of between $4 billion and $8 billion for the quarter.
We are excited to have our employees back in the US and Europe. Cook told analysts that they were monitoring the COVID-related disruptions in China.
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