It will take Apple years to move production out of

It will take Apple years to move production out of China

Apple recently announced that it has temporarily halted production of the iPhone 14 series of smartphones as its contractor Foxconn’s factory in Zhengzhou, China is shut down by “significantly reduced performance» due to COVID-19 restrictions. Apple is aiming to diversify manufacturing into Vietnam and India, but it could be years before it pulls out of China. to warn Experts.

It will take years for Apple to diversify its iPhone production, which is primarily based in China, even if the Chinese government continues to maintain a zero-tolerance policy for COVID-19, which is hurting iPhone production, Jeff Fieldhack said on Tuesday Research for marketing and consulting firm Counterpoint Research as part of CNBC’s Squawk Box Asia program.

The company places iPhone assembly orders outside of China in places like India and Vietnam, but Fieldhack says it’s still limited to a relatively small number of smartphones. He suggested that the large number of workers employed in the production of Apple devices in China (the Zhengzhou plant alone has about 200,000 workers) is an additional argument in the confrontation between Washington and Beijing to attract any Chinese To avoid retaliation against the United States through tariffs or other restrictions.

The company currently has 31 days to complete an iPhone 14 Pro order through Apple’s website, versus two days for some other iPhone models, said JPMorgan analyst Samik Chatterjee.

Counterpoint Research estimates that production of iPhone 14 smartphones, mainly iPhone 14 Pro and Pro Max models, will fall by 10% over the next few weeks due to production disruptions in Zhengzhou. Fieldhack believes the company has time to make adjustments and move some production south, to India and China, where they also make the iPhone 14 Pro and Pro Max.


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Johnson Smith

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