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Apple eyes moving production outside of China as COVID supply chain snags threaten sales: report

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Apple is looking to increase its production outside of China, citing Beijing’s zero-COVID policy as one of the primary reasons. According to the report’s anonymous sources, Apple is telling suppliers that it wants to expand production elsewhere, including in India and South-East Asia.

Currently, both India and Vietnam only produce a small percentage of the company’s products. Apple has been reliant on Chinese manufacturing for over a decade, with analysts estimating that 90 per cent of the company’s products are made by contract manufacturers in China.

Apple warned last month its sales could tank as much as $8 billion (€7.5 billion) in the quarter ending June 30 2022 due to supply chain shortages caused by China’s strict COVID-19 policies.Apple supplier Foxconn shut down factories near Shanghai last month due to a surge in cases.

 

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