India and Vietnam, which are already sites of Apple production, are reportedly short-listed by the company as alternatives.
HIGHLIGHTS
1. As a result of China's COVID-19 lockdowns, Apple expects more supply issues.
2. Apple has various justifications for their decision.
3. Apple supplier Foxconn has forecasted a difficult quarter for the company.
The Wall Street Journal claimed that Apple has told several of its contract manufacturers that it wants to expand production outside of China, citing people familiar with the situation.
Apple has short-listed India and Vietnam as options, according to the report. India chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier
Last month, Apple predicted worsening supply issues as China's COVID-19 lockdowns delayed production and demand.
According to the article, Apple's decision was influenced by China's tough anti-COVID policy, among other factors.
Apple Ads declined to comment to the Wall Street Journal and could not be reached on Saturday by Reuters.
Foxconn, an Apple supplier, forecasted a difficult quarter earlier this month. Foxconn said that revenue for its electronics sector, which includes smartphones, could fall in the current quarter as growth slowed due to growing inflation, cooling demand in China's lockdown, and escalating supply chain concerns.
Like other worldwide manufacturers, the Taiwanese firm, the world's largest contract electronics manufacturer, has been dealing with a severe chip shortage, which has hampered smartphone production, especially for its key client Apple.
While the corporation reiterated that COVID-19 regulations in China had a limited influence on production because workers were kept on-site in a "closed loop" method, demand for its products in the nation has declined as people remain trapped. The slowdown has recently been compounded by a drop in major markets as a result of high inflation and the Ukraine conflict.
