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Apple’s supply chain management mainly focused on quality and cost in the past. But now, rising geopolitical risks are creating new deglobalization () challenges and increasing the complexity of supply chain management.
— (Ming-Chi Kuo) (@mingchikuo) August 4, 2022
In a further tweet, Kuo says that Apple faces two challenges.
“Challenge 2: Impact of geopolitical risk on supply efficiency,” he continued. “Solution: Build more non-Chinese production locations.”
Kuo further says that, “Apple has already been implementing both solutions and is expected to accelerate progress in the foreseeable future.”
Apple is attempting to avoid a repeat of the issues that saw its main Chinese suppliers shut down by the local authorities’ coronavirus lockdown measures. Even outside of the hopefully temporary COVID situation, China has also been implement a series of power cuts that have affected Apple’s suppliers.