Apple has an action plan to build 'New Production Introduction' sites outside China following recent COVID lockdowns in the country, according to TF International Securities analyst Ming-Chi Kuo.
Apple's new product introduction (NPI) sites are almost in China. It was the first time for Apple to evaluate building NPI sites in non-China seriously when the COVID-19 outbreak first occurred about two years ago, but internally it only proceeded to the proposal stage.
However, after the recent lockdowns in China, to diversify supply chain management risks, building NPI sites in non-China is no longer a proposal but an action plan.
Recent analysis found that around half of Apple's suppliers operate facilities in areas currently affected by COVID lockdowns in China. The company is said to be aggressively negotiating with Chinese government to reopen supplier production lines that have been shut down but it could be a few weeks before restrictions ease.
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Apple's new product introduction (NPI) sites are almost in China. It was the first time for Apple to evaluate building NPI sites in non-China seriously when the COVID-19 outbreak first occurred about two years ago, but internally it only proceeded to the proposal stage.
However, after the recent lockdowns in China, to diversify supply chain management risks, building NPI sites in non-China is no longer a proposal but an action plan.
Recent analysis found that around half of Apple's suppliers operate facilities in areas currently affected by COVID lockdowns in China. The company is said to be aggressively negotiating with Chinese government to reopen supplier production lines that have been shut down but it could be a few weeks before restrictions ease.
Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for more Apple news.