Apple is Looking to Expand Production Outside of China

The Wall Street Journal reported on Saturday that Apple is looking to expand its manufacturing capabilities outside of China. According to individuals close to the situation, one of the reasons for the claimed push was Beijing's zero-Covid policy. Apple products are created by contract manufacturers in China, according to analysts, leaving the tech giant's success exposed to the whims of the Chinese Communist Party.

Due to the escalating number of cases of COVID-19, Apple vendors like Foxconn have been compelled to shut down. According to Reuters, Quanta Computer, which makes three-quarters of Apple's MacBook devices, shut down earlier this month despite maintaining a "closed-loop" campus designed to keep the virus from spreading. According to unidentified Journal sources, Apple is now informing suppliers that it wants to expand production in India and Southeast Asia. 

Apple CEO Tim Cook noted on an earnings call in late April that the business faced two supply constraints last quarter that hampered its ability to meet consumer demand: pandemic-related disruptions and an industrywide semiconductor shortage. For the quarter ended June 30, Apple CFO Luca Maestri predicted supply chain limitations of between $4 billion and $8 billion.