Apple urgently needs a solution to the current production issues in China and they are already planning to expand outside of that country.
Bad and bad the situation of Apple in China and the production of the iPhone. The Wall Street Journal reports that those of Cupertino are trying to accelerate their expansion plans outside of China in terms of assembling their products. A new outbreak of COVID-19 and issues around worker protests have been his Achilles heels in recent weeks. What do you plan to do about it?
Apple is considering new countries to expand production capacity
Given the obvious complications in China, the possibility of expanding to countries where they are already present is being studied
Recall that Cupertino already has the experience of assembly plants and produces the oldest iPhones in India and Brazil. Vietnam mainly assembles AirPods and HomePods. It is not easy to move production of a product as important as the iPhone. The the most important risk factors are infrastructure and manpower.
Adapting to a new factory in another countryConsidering that China has been its base for many years, it will cost more than money. It is necessary to satisfy the current demand for iPhone 14 Pro and future such. 40% of iPhone production could move to other countries
In China, things are not looking good (and they won’t be for a long time).
In addition to having already exposed this information, the Wall Street Journal indicates that Apple manages its suppliers in such a way that they want to launch new products. He has all the sense in the world, What they want to avoid in the future is having a problem like the one they have now with iPhone.
The goal is to build manufacturing ecosystems capable of supporting a good load products and solve production problems when a base factory has complications in the process.
Since 2016, China has been facing issues such as the trade war with the United States. Global economic weaknesses are also producing internal changes both in countries like China and with companies Apple has faced declining hiring.
COVID-19 does not let go of the two entities and Apple suffers billions of dollars in losses, analysts say. Not having the iPhone 14 Pro with enough stock could be noted in subsequent tranches of financial results, as they expect up to 6 million fewer units in production.
On the other hand, Apple is fighting with China and every move is being watched with a magnifying glass. The availability of AirDrop has been limited, it happens that in the face of recent protests against the Chinese government, users use this tool from Apple to share information.