September 27, 2022
Apple Negotiating With Chinese Government to Reopen Production Lines [Kuo]

Apple Negotiating With Chinese Government to Reopen Production Lines [Kuo]

Posted April 15, 2022 at 4:00pm by iClarified · 2927 views
Apple is negotiating with Chinese government to reopen supplier production lines that have been shut down due to COVID concerns, reports TF International Securities analyst Ming-Chi Kuo.

The company is purportedly trying to get production restarted by next week at the earliest.

I've heard that Apple is doing its best to negotiate with the Chinese government with the goal of reopening suppliers' production lines that were shut down due to COVID lockdowns starting next week at the earliest.

Kuo also notes that Apple's aggressive negotiations likely means it is experiencing strong product demand.

I'm not sure if Apple can succeed, but it may explain why Apple supply chain has not seen significant order cuts after the COVID lockdowns. In addition, the aggressive negotiation for the resumption of work also represents most Apple products have strong demand now.

Earlier this week, Pegatron, which assembles up to 30% of Apple's iPhones, was forced to suspend production at its Chinese plants. Additionally, Quanta Computer, the sole supplier of Apple's high-end MacBook Pros, was forced to halt production in Shanghai on Wednesday.

"Local operation in Shanghai area has been temporarily suspended in response to COVID-19 prevention measures required by local government", said Quanta. "Expected date of production resumption is to be advised by local authority."

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Apple Negotiating With Chinese Government to Reopen Production Lines [Kuo]
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