Apple’s Diversification Away From China Will Require Years, According to Counterpoint Research

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Last Updated on November 11, 2022 by Bitfinsider

According to Counterpoint Research’s Jeff Fieldhack, it will take Apple years to diversify away from its Chinese manufacturing, as China continues to implement its zero-Covid policy, which is harming iPhone production.

Apple’s primary iPhone 14 Pro and iPhone 14 Pro Max manufacturing factory in Zhengzhou, China is running at “substantially reduced capacity” owing to Covid-19 restrictions, the company claimed in a statement released on Sunday.

Apple has been opening plants in nations south of China, such as India and Vietnam, to diversify its device assembly process away from China.

“However, there are some gadgets that might be produced in other nations, such as India, but it’s a very, very small number,” he said.

Apple’s stock is down 20% so far this year.

Fieldhack stated that the sheer number of employees Apple employs in China may be used as a bargaining chip with the Chinese government, given that the iPhone manufacturer employs approximately 200,000 workers at its Zhengzhou manufacturing.

“Apple may say, ‘Hey, we have more workers in China than in the United States.'” This is quite robust and helps them avoid any tariffs or other retribution from China against the United States,” Fieldhack noted.

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