Apple moves production from China to Taiwan

UNITED STATES (OBSERVATORY NEWS) — Apple has begun relocating the production of a number of its new gadgets, which are slated for release in the first half of 2020, DigiTimes reports citing sources in the supply chain. Among the devices, the production of which is transferred to Taiwan, there are AirPods Pro Lite, iPad and Apple Watch.

Apple is trying to diversify its supply chain with the proliferation of coronavirus, which has seriously impacted production. Apple intends to gradually increase the share of production in Taiwan, while trying to maintain cooperation with other suppliers.

It is estimated that at least one third of China’s production lines will be idle in the first quarter of this year, and it is almost impossible to return to normal production levels before the end of February. It is also doubtful that production could be resumed during the first ten days of March.

Earlier media reported that Apple has scheduled for the current year to update a number of its products. Upcoming devices allegedly include new headphones, which could be a lightweight version of AirPods Pro. DigiTimes also notes that an update is coming for iPad‌ tablets, ‌Apple Watch‌ watches and ‌iMac‌ series computers.

It was assumed that some of the upcoming products will be released in the coming months, others in the spring of this year, but now it is difficult to make forecasts regarding the production schedule, even if the new products are presented in March.

Even Apple itself is in limbo. The company recently said it might not receive the revenue announced earlier in its quarterly forecast due to lower iPhone shipments worldwide and falling demand in China.

In a recent quarterly forecast, Apple voiced expectations for revenue ranging from $ 63 billion to $ 67 billion, but then information was reflected based on the optimal estimate of the rate of return to the usual work schedule. However, the recovery is slower than expected. Apple has not announced a new earnings forecast for the current financial quarter.

Apple makes most of the iPhone and other gadgets in China. Due to the coronavirus, she temporarily suspended production and closed retail outlets in China. Some Apple stores reopened in China with a shorter schedule last week.

Almost all iPhones are created at two Taiwanese factory-assemblers Foxconn and Pegatron, located about 500 km from Wuhan, where the outbreak of the coronavirus began. Foxconn, Apple’s largest partner, intends to resume production at least halfway in China by late February, the agency said earlier. Reuters.

The contract manufacturer also plans to resume 80% of production in China in March.

Foxconn increased capacity in factories in Vietnam, India and Mexico to cope with downtime in China, but the manufacturer may record a drop in revenue in the first quarter of 2020 due to an epidemic that began to affect the activities of the contract manufacturer.


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