Apple technology may rise in price: more than 20% of production leaves China
Business
The conflict between the US and China is pushing corporations, including Apple, to diversify production, threatening to increase the cost of technology.
Amid tensions between China and the US, including US attempts to limit China's technological growth, the production of many big tech companies, including Apple, is starting to move out of China to other Asian countries. This shift in production could drive up product costs and affect millions of consumers.
Over 80% of Apple's production partners are in China, according to a Bloomberg analysis. However, the company has been seeking to diversify its production for several years, mainly to India and Vietnam. Despite this, supply chain splitting and changing manufacturing partners can drive up costs, leading to an increase in the cost of end products. Technologically advanced models can be especially vulnerable, as they are the ones that can experience the most cost increases.
The shift of production to less developed countries such as India and Vietnam can increase the risks and costs associated with the production infrastructure, which can ultimately affect prices and hurt buyers.
Over 80% of Apple's production partners are in China, according to a Bloomberg analysis. However, the company has been seeking to diversify its production for several years, mainly to India and Vietnam. Despite this, supply chain splitting and changing manufacturing partners can drive up costs, leading to an increase in the cost of end products. Technologically advanced models can be especially vulnerable, as they are the ones that can experience the most cost increases.
The shift of production to less developed countries such as India and Vietnam can increase the risks and costs associated with the production infrastructure, which can ultimately affect prices and hurt buyers.
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