Kuo reportedly supports the rumor that Apple is increasing its Chinese supply network


It is true that Apple is collaborating with more Chinese suppliers, according to analyst Ming-Chi Kuo, but this is only a portion of the company’s intentions to avoid becoming overly dependent on a single supplier.

Kuo responds to an allegation that Apple is attempting to expand its supplier base and disperse the manufacturing of its devices across China by claiming that this is one step in handling a supply chain that is becoming more complex.

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Kuo claims that Apple is facing two difficulties in a subsequent tweet.

The first challenge, according to him, is how geopolitical issues could affect sales in China, Apple’s most significant international market. Make greater purchases from Chinese vendors, is the suggestion. The second Challenge according to Kuo is the effect of economic uncertainty on resource productivity develop extra non-Chinese assembly plants, is the answer.

Furthermore, according to Kuo, “Apple has just started applying these solutions and also is expected to step up efforts in the coming years.”

Apple is taking an effort to prevent a recurrence of the problems that led to the closure of its primary Chinese vendors due to local officials’ coronavirus lockdown procedures. Aside from the presumably transient COVID problem, China has also implemented a number of rolling blackouts that have impacted Apple’s vendors.

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