Apple moving some AirPods, Apple Watch and iPad production from China to Taiwan
Apple is said to be shifting some of its AirPods, Apple Watch and iPad production from China to Taiwan in an effort to reduce the impact of the ongoing coronavirus inflicting Chinese production shutdowns, according to Taiwan News, via Digitimes.
The news comes after Apple advised investors this week that it does not expect to meet the revenue guidance it provided for the March quarter due to supply constraints and poor sales performance in China amid the deadly outbreak, suggesting revenue will be below $63 billion.
Within the report, sources claim it would be “almost impossible” for Apple’s suppliers to return to their normal level of production in China before the end of February, with doubt cast on if production could be resumed within the first ten days of March.
Apple is trying to diversify its supply chain geographically due to the spread of the virus, which has seriously affected the production of Apple products in the communist country. Apple intends to gradually increase the proportion of production in Taiwan while still trying to maintain its cooperation with suppliers on the other side of the strait.
With rumors suggesting Apple will host an event at the end of March to unveil an all-new low-cost iPhone, the report says it is estimated that at least one-third of China’s production lines will lay idle in the first quarter of this year.
It is estimated that at least one-third of China’s production lines will lay idle in the first quarter of this year, and it would be almost impossible to return to the normal level of production before the end of February. It is also doubtful whether normal production could be resumed within the first ten days of March