Thursday, June 27, 2019

Apple planning to shift upto 30% of its production capacity from China

Amid US-China tussle and sanctions, there are more news, both good and bad pouring out from China and US stakeholders. 

The good news is that Apple is planning to shift upto 30% of its production capacity from China to Southeast Asia, which will create more jobs in the Southeast Asian countries and bring in more capital. And the bad news is that proportionally the Chinese workforce be badly hit due to this decision as they may be rendered jobless.

After sanctions imposed by US on Chineses tech giant Huawei, the sales of Apple products, specially the iPhones, has been badly hit as Chinese have thrown away their iPhones in favour of Huawei products.

It may be added that Apple depends heavily on manufacturing in China, which the company now thinks is too great a risk because a credit rating agency named Fitch said that it observes Apple, Dell Technologies Inc and HP as potential blacklist candidates if China planned to blacklist US companies as payback for restrictions on Huawei.

Although, Apple has not set any deadline for its suppliers to develop a proposal for transfer, Nikkei forecasts that it would take at least 18 months to initiate production after choosing a suitable location.


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