Kuo backs up rumors that Apple is diversifying suppliers in China

Posted:
in General Discussion
Analyst Ming-Chi Kuo says it's true that Apple is working with more Chinese suppliers, but claims this is just part of the company's plans to avoid over-reliance on one supplier.




Following a claim that Apple is working to gain more suppliers and spread its device production around China, Kuo says that it is one part of addressing an increasingly complex supply chain.

Apple's supply chain management mainly focused on quality and cost in the past. But now, rising geopolitical risks are creating new deglobalization () challenges and increasing the complexity of supply chain management.

— (Ming-Chi Kuo) (@mingchikuo)
In a further tweet, Kuo says that Apple faces two challenges.

"Challenge 1: Impact of geopolitical risks on sales in China (Apple's most important overseas market)," he wrote. "Solution: Do business with more Chinese suppliers."

"Challenge 2: Impact of geopolitical risk on supply efficiency," he continued. "Solution: Build more non-Chinese production locations."

Kuo further says that, "Apple has already been implementing both solutions and is expected to accelerate progress in the foreseeable future."

Apple is attempting to avoid a repeat of the issues that saw its main Chinese suppliers shut down by the local authorities' coronavirus lockdown measures. Even outside of the hopefully temporary COVID situation, China has also been implement a series of power cuts that have affected Apple's suppliers.

Read on AppleInsider

Comments

  • Reply 1 of 3
    9secondkox29secondkox2 Posts: 1,346member
    Going from China to China isn’t diversification. 

    It doesn’t matter the company name or location when they are all basically front companies for the Chinese dictatorship. 

    Considering China’s 2049 goal, its past time we stopped funding those plans. 

    https://www.forbes.com/sites/johnmauldin/2019/11/12/chinas-grand-plan-to-take-over-the-world/?sh=3180afbc5ab5

    japan, UK, Israel, Taiwan, Ireland, Scotland, South Korea, Indonesia, and even the USA (which Taiwanese partners are investing in) all are great options. Invest now. Reap the rewards later. 

    The Chinese connection needs to go. Apple is all about human rights when it’s convenient. But here we have a dictatorship that abused them routinely and apple is pouring in hundreds of billions in funds. 

    I understand that they can’t just cut and run, nor would it be viable to sever everything completely, as adversaries will still be doing business (no scruples-the same companies that rip off apple ideas and designs). But a significant move away needs to take place, pronto. 
    edited August 4
  • Reply 2 of 3
    Going from China to China isn’t diversification. 

    It doesn’t matter the company name or location when they are all basically front companies for the Chinese dictatorship. 

    Considering China’s 2049 goal, its past time we stopped funding those plans. 

    https://www.forbes.com/sites/johnmauldin/2019/11/12/chinas-grand-plan-to-take-over-the-world/?sh=3180afbc5ab5

    japan, UK, Israel, Taiwan, Ireland, Scotland, South Korea, Indonesia, and even the USA (which Taiwanese partners are investing in) all are great options. Invest now. Reap the rewards later. 

    The Chinese connection needs to go. Apple is all about human rights when it’s convenient. But here we have a dictatorship that abused them routinely and apple is pouring in hundreds of billions in funds. 

    I understand that they can’t just cut and run, nor would it be viable to sever everything completely, as adversaries will still be doing business (no scruples-the same companies that rip off apple ideas and designs). But a significant move away needs to take place, pronto. 
    Japan, Taiwan, South Korea all have many plants in China. 
  • Reply 3 of 3
    9secondkox29secondkox2 Posts: 1,346member
    Going from China to China isn’t diversification. 

    It doesn’t matter the company name or location when they are all basically front companies for the Chinese dictatorship. 

    Considering China’s 2049 goal, its past time we stopped funding those plans. 

    https://www.forbes.com/sites/johnmauldin/2019/11/12/chinas-grand-plan-to-take-over-the-world/?sh=3180afbc5ab5

    japan, UK, Israel, Taiwan, Ireland, Scotland, South Korea, Indonesia, and even the USA (which Taiwanese partners are investing in) all are great options. Invest now. Reap the rewards later. 

    The Chinese connection needs to go. Apple is all about human rights when it’s convenient. But here we have a dictatorship that abused them routinely and apple is pouring in hundreds of billions in funds. 

    I understand that they can’t just cut and run, nor would it be viable to sever everything completely, as adversaries will still be doing business (no scruples-the same companies that rip off apple ideas and designs). But a significant move away needs to take place, pronto. 
    Japan, Taiwan, South Korea all have many plants in China. 
    Which has nothing to do with what I just said.
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