Apple's tech supply chain shows difficulties in cutting dependence on China

Bloomberg Intelligence estimates it would take about eight years to move just 10% of Apple's production capacity out of China, where roughly 98% of the company's iPhones have been made

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Chinese vendors account for nearly half of global smartphone shipments, the region has a well-developed supply chain, which will be tough to replicat and one Apple could lose access to if it moves

Bryce Baschuk, Debby Wu and Peter Elstrom | Bloomberg
American companies have had a growing list of reasons to downgrade their ties with China in recent years. Former President Donald Trump’s tariffs. Beijing’s stringent Covid lockdowns. The US-Sino standoff over Taiwan. Political pressure to “friend-shore” supply chains toward nations aligned with Washington.
But breaking up, as the adage goes, is hard to do.

That conclusion is evident from a Bloomberg Intelligence analysis of Apple Inc., which is trying to reduce its dependence on China. The Cupertino, California-based company company already started producing some iPhone 14 models in India, in an earlier than usual move for new models. And Apple’s largest

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First Published: Sep 30 2022 | 8:35 AM IST

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