Apple is forced to transfer part of the production to other countries
Due to the uneasy relationship between the US and China, major technology companies, including Apple, are forced to partially move their production from China to other Asian countries. This could lead to an increase in the cost of the company’s products, according to Bloomberg.
Approximately 80% of Apple’s manufacturing partners currently have some sort of ties to China, according to the agency’s analysis. At the same time, in recent years, the company has made efforts to move part of its production from China to other Asian countries, mainly India and Vietnam. As Bloomberg writes, “The split in global supply chains threatens to drive up prices for Apple’s broad consumer base as manufacturers, carriers and brands face production challenges in less developed locations.” This can lead to popular gadget models becoming more expensive to manufacture.
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Back in 2012, none of Apple’s partners had ties to India, but now at least 15 contracting companies have established manufacturing bases there. In addition, the iPhone 15 began to be released in India even before the presentation of the new product, which Apple had not practiced before.
“The price of Apple products can certainly increase to reflect higher costs,” says Bloomberg Intelligence expert Stephen Tseng. “It is possible that the increase in costs will not be fully reflected in the final price, as this could hurt the market.”
In August, US President Joe Biden signed an executive order restricting US investment in China’s high-tech industries. It affects the sectors of semiconductor development, microelectronics, quantum technologies and artificial intelligence. Companies will be required to report such investments, and some of them will be banned.
