Apple is looking to expand its production capabilities outside of China, The Wall Street Journal reported Saturday. The tech giant cited Beijing’s zero-Covid policy as one reason behind the reported push, sources close to the matter told the outlet.
Throughout the COVID-19 pandemic, Apple suppliers such as Foxconn have been forced to shut down due to rising cases. Earlier this month, Quanta Computer which produces three-quarters of Apple’s MacBook products shut down despite maintaining a “closed-loop” campus designed to prevent the spread of the virus, Reuters reported.
Now, Apple is telling suppliers that it wants to expand production in India and Southeast Asia, according to the Journal’s anonymous sources. Apple did not immediately respond to Insider’s request for comment.
On an earnings call in late April, Apple CEO Tim Cook said the company experienced two supply restraints last quarter that impacted Apple’s ability to meet consumer demand: pandemic-related disruptions and an industrywide shortage of silicon. Apple CFO Luca Maestri estimated supply chain constraints of between $4 billion and $8 billion for the quarter ending June 30.
“We are excited to be welcoming employees back to the offices in the US and Europe. At the same time, we are monitoring COVID-related disruptions in China,” Cook told analysts. “Our thoughts are with all those in the path of the virus, and we remain as committed as ever to doing our part to help protect people and their communities.”