Apple has been in talks with China to reopen supplier’s production following the government’s decision to impose COVID-19 lockdowns on major Chinese locations that house Apple suppliers and production facilities, according to analyst and reporter Ming-Chi Kuo.
Kuo has stated in a tweet earlier on Friday that Apple has been attempting to convince the Chinese government to reopen Apple’s suppliers’ facilities through negotiations, with the earliest move could come next week:
“I’ve heard that Apple is doing its best to negotiate with the Chinese government with the goal of reopening suppliers’ production lines that were shut down due to COVID lockdowns starting next week at the earliest.”
Earlier this week on Tuesday, China imposed lockdowns in major economic cities such as Shenzhen and Kunshan where major Apple production facilities are located. The lockdown on these cities shut down the company’s major supply chain. Since March, China has been fighting its biggest COVID-19 outbreak, especially in Shanghai, according to CNN:
“Since March, China has battled its biggest Covid wave yet, with Shanghai now the largest hotspot. All 25 million residents are under lockdown, with national health care workers and the Chinese military dispatched to boost the city’s response.”
Kuo has doubted that Apple’s move would succeed as he notes “aggressive negotiation” by the Cupertino-based giant due to the resumption of production work on strong demanded Apple such as iPhone, iPad, and the Mac:
“I’m not sure if Apple can succeed, but it may explain why Apple supply chain has not seen significant order cuts after the COVID lockdowns. In addition, the aggressive negotiation for the resumption of work also represents most Apple products have strong demand now.”
China is Apple products’ production heart – iPhones, iPads, Macs, and many other devices are produced there – and any disruption in the supply chain will affect the company’s schedule for releasing upcoming products.
(2/2) I'm not sure if Apple can succeed, but it may explain why Apple supply chain has not seen significant order cuts after the COVID lockdowns. In addition, the aggressive negotiation for the resumption of work also represents most Apple products have strong demand now.
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) April 15, 2022