The current health crisis in China caused by the COVID-19 disrupts operations of facilities in the region. This has a massive impact on the production and supply of components and products of some of the biggest names in the tech industry, including Apple. A new report claims that the Cupertino company is slowly moving the production of some of its products from China to Taiwan.
Apple Production Transfer
The new report comes from a local-language publication Taiwan News. The Cupertino company is geographically diversifying its supply chain because of the unresolved COVID-19 outbreak, according to the report. Apple is reportedly aiming to raise production in Taiwan while it is still resolving issues and facilitating cooperation with suppliers in China.
Because of the impact of the COVID-19 outbreak, many analysts estimate that at least one-third of the production lines in the region would be idle in the first quarter of 2020. There are several predictions that the production of components and parts essential to many products would only last until Feb. 2020. It means that by the end of this month if China could not fix the health crisis, it would run out of components and parts by the end of this month.
Considering the current situation in China, analysts are doubtful that it could return to its normal production level before the month ends. Even if China could fix the problem this month, analysts believe that it is nearly impossible to resume the normal operation of facilities in the region within the first ten days of next month.
Other Details
It is possible that Apple would move the production of its upcoming products to Taiwan. It could include the production of iPhone, AirPods, and Apple Watch, which are anticipated to arrive in the first half of the year. In one of his statements, Apple CEO Tim Cook said that its primary concern is the welfare of its people or those who make up the community of employees, customers, suppliers, and partners in China.
Apple earlier shutdown 42 stores in the region, including retail stores, service centers, and corporate offices to protect its employees from contracting the COVID-19 virus. At present, Apple's iPhone maker Foxconn has returned to its normal operation in China. However, it was reported that it only got 10 percent employee turnout during the first day that it resumed its operation.
Apple is anticipated to release the iPhone SE 2 in the first quarter of this year. It might also launch its flagship iPhone series in September alongside the Apple Watch.
