The market is worried that if the local government is unable to contain the epidemic as soon as possible, Apple’s iPhone production capacity of new and old models may suffer a significant impact, which will not only affect Apple’s own earnings performance, but also the related supply chain.
The Indian government, in order to drive local economic development, has actively wooed Apple and related supply chains in recent years, giving many concessions in terms of land and taxes, and strongly advocating “Made in India”, which has indeed successfully attracted Apple’s attention and started to actively relocate part of its production capacity from mainland China to India.
According to the foreign press, Apple intends to move 7 to 10% of its production capacity in mainland China to India, in addition to dispersing geopolitical risks on the one hand, and is optimistic about India’s huge consumer market on the other.
However, India’s new wave of pneumonia epidemic came fast and furious, has disrupted Apple’s layout, local sources even said that the original Apple will start mass production of iPhone 12 in India in the first half of this year, now the epidemic factors interfere, if the epidemic can not be controlled, iPhone 12 production capacity is likely to be affected, or even into a halt.
The legal person said that for technology plants, geopolitics and the new crown pneumonia epidemic are difficult to control the risk, and Apple’s production capacity transfer plan is therefore not a small obstacle, how to solve this problem in the future, not only to test the Indian government, but also to test how Apple responds, and the domestic supply chain is bound to tense nerves in order to reduce the impact.
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