Analyst Ming-Chi Kuo says that Apple's previous desire to reduce its reliance on China has become "an action plan" since the country's recent lockdowns.
The coronavirus was one of the first prompts for Apple, and other technology firms, to reassess their reliance on any one country as a source. However, the coronavirus was then also a reason why plans to make major moves were delayed, and the result was that Apple continued to be reliant on China.
Now analyst Ming-Chi Kuo says that the recent COVID lockdowns in the country have made Apple step up its thinking about diversifying production.
(1/3)— (Ming-Chi Kuo) (@mingchikuo) April 21, 2022
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," continues Kuo in his tweets, "to diversify supply chain management risks, building NPI sites in non-China is no longer a proposal but an action plan."