What you need to know
- Apple is reportedly moving some of its production to Taiwan.
- Production of iPads, Apple Watches and AirPods is being shifted.
- It is reported that Apple is trying to diversify its supply chain due to the spread of the virus.
A report suggests that Apple is shifting production of several of its products away from China to Taiwan as it looks to cope with concerns over the spread of the coronavirus, COVID-19.
According to Taiwan News:
As the Wuhan coronavirus (COVID-19) continues to spread in China, Apple is moving the manufacture of some of its top devices to Taiwan.
Apple has begun to move the production of a number of its top gadgets set to launch in the first half of 2020, according to a report by am730, which cited DigiTimes. The products listed in the report to be shifted to Taiwan include AirPods Pro Lite, iPads, and Apple Watches.
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.
The report further notes that it is estimated that one-third of China's production lines could lay idle in the first quarter of the year and that a return to normal production will not be possible before February, or even the first 10 days of March.
Recent reports suggest that as the coronavirus continues to impact iPhone production, supply may not return to normal until April. With Apple rumored to be launching a new iPhone in March of 2020, the impact on the supply of that device remains unclear.