A few days ago, analyst Ming-Chi Kuo claimed that Apple is now working with more suppliers in China. The purpose of this maneuver is to diversify partners in order to respond effectively to an increasingly complex supply chain. It also avoids over-reliance on a single supplier.
We remember the confinements in Shenzhen which forced Foxconn, Apple’s main supplier to shut down its production plants. The Cupertino company therefore wants to work with more companies to prevent this type of problem from derailing its machine. To successfully implement this new strategy, Apple is now working with suppliers located in other countries. These are Vietnam and India.
India poses as an alternative to China in the manufacture of iPhone 14
Analyst Ming-Chi Kuo said that for the first time in its history, a new line of Apple products will be manufactured in India also at the same time as in China. And it is the iPhone 14 which will have this chance. This will make the new high-end smartphone from the Cupertino company the symbol of the new diversification strategy now implemented by Apple.
She added that for now India does not yet have the reins strong enough to take over the factory role for Apple products. In the short term, Bharat has lower production and shipping capacities compared to China. However, this is an important step for Apple in its vision of establishing a non-Chinese iPhone production site.
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Apple is also taking preventive measures against geopolitical impacts
The technology sector is not immune to global geopolitics. The war in Ukraine came as a reminder of this following the sanctions imposed on Russia by various countries in the Western world. With the tensions in the China Sea and the Taiwanese crisis, it is not excluded that China will one day be subject to the same sanctions. Which would clearly be a disaster for a company like Apple which is heavily dependent on its Chinese suppliers.
Apart from that, Ms. Kuo also believes that Apple has identified the Indian market as the next key growth engine on the planet. By relocating part of its activities now, the company hopes to position itself to capture the funds deposited in the near future.
Source : Apple Insider
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