IT House April 22 news, according to 9to5 Mac reported that according to a new report by analyst Guo Mingxi, due to the increase in COVID-19 cases, China's continuous epidemic lockdown, Apple is now developing an "action plan" to spread its supply chain management risks to other regions.
Over the past few weeks, Foxconn and other manufacturers have struggled to cope with the lockdown of the outbreak in China. As a result, factories need to shut down production for a period of time or conduct mass testing of workers to ensure that there are no COVID-19 infections among workers.
While Apple has been one of the best to deal with supply chain constraints during the pandemic, the company also seems to be struggling to be cautious about the near future.
Analyst Ming-Chi Kuo wrote in a social media post:
"Apple's new product introduction (NPI) sites are almost all in China. When COVID-19 first broke out about two years ago, it was the first time Apple had seriously evaluated building an NPI site in a non-China region, but internally it only moved into the proposal phase. However, in the wake of the recent lockdown in China, in order to diversify supply chain management risks, the establishment of NPI sites outside of China is no longer a proposal, but an action plan. ”
In addition to China, Apple has diversified its supply chain to other regions such as India. Recently, it has been reported that some products have been more difficult to obtain for production due to the recent lockdown.
For example, a new MacBook Pro can take several weeks to find in some configurations. On the other hand, these blockades show that Apple's iPhone SE 3 and AirPods 3 sales are disappointing. Over the past few weeks, the appeal of the entry-level iPhone, which can turn 1 billion Android users into switchers, is diminishing.