Due to ongoing lockdowns in China due to rising COVID-19 cases, Apple is currently on an “action plan” to diversify its supply chain management risks outside the country, according to a new report from analyst Ming-Chi Kuo.
Over the past few weeks, it has been reported that Foxconn and other manufacturers are struggling with lockdowns in China. At the same time, factories must either stop production for a certain period or conduct mass testing of workers to make sure that there are no COVID infections among them.
While Apple has been the company that has handled supply chain constraints during the pandemic best, it looks like it is trying to exercise caution in the near future. Here is what analyst Ming-Chi Kuo wrote in social media post:
Apple’s new product introduction (NPI) sites are almost in China. Apple first seriously considered setting up NPI sites outside of China when the COVID-19 outbreak first hit about two years ago, but internally it has only progressed to the proposal stage. However, after the recent lockdown in China to diversify the risks associated with supply chain management, establishing NPI sites outside of China is no longer a proposal, but an action plan.
Besides China, Apple is already diversifying its supply chain to other countries such as India and Taiwan. Recently reported that some products are harder to find due to recent restrictions.
For example, a new MacBook Pro in some configurations can take several weeks. On the other hand, these lockdowns have shown that the iPhone SE 3 and AirPods 3 are disappointing for Apple. Demand for the low-entry iPhone, which could turn one billion Android users into switchers, has been declining in recent weeks.
will continue to monitor Apple’s plans to diversify supply chain management risks. Chances are we could hear more about it during the company’s second-quarter earnings report on April 28.
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Apple’s new product introduction (NPI) sites are almost in China. Apple first seriously considered setting up NPI sites outside of China when the COVID-19 outbreak first hit about two years ago, but internally it has only progressed to the proposal stage.see also
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) April 21, 2022
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