Analysts believe that supply chain disruptions and locks will speed up Apple’s departure from China, with India as a potential contributor.

According to analysts, strict locks in Shanghai and surrounding areas have hurt Apple’s value chain in China, which is an example of the country’s global influence as a source of activity and conference. This increases the risk that the US technology giant will slow down its operations in China. While it is difficult to put a regular figure on the losses caused by disruptions in Apple’s huge value chain in China, chief financial officer Luca Maestri said on Thursday that Covid-19-related locks and a malfunction will reduce the company’s revenue by about US $ 8 billion in June quarter.

Maestri said this was a “huge” impact in the previous quarter and also warned of the potential impact of declining customer demand in China due to locks. Do you have questions about the biggest titles and trends from around the world? Get answers with SCMP Science, our new collection of treated content with details, FAQs, analytics and informational information brought to you by the award winning team.

Apple’s close ties with China have, historically, been supported by two main factors. First, the country is a perfect assembly center for a technology-based California giant, thanks to its advanced infrastructure, skilled workforce and efficient logistics services. Cars from Taiwan, South Korea and elsewhere are assembled into iPhones and iPads on factory floors in China for worldwide purchase. Second, China itself is the second-largest market for Apple, thanks to the country’s middle-growing group, which has become richer in the past decade, analysts say.

China’s severe locks in Shanghai and the Jiangsu region – major financial and manufacturing sectors – from the end of March to tame the highly contaminated Omicron variant of the Covid-19, have raised doubts about national status. the country as an integral part of Apple’s supply chain. .

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