Wedbush’s technology analyst Dan Ives made his comments when looking at Apple’s current supply chain situation.
Last week, the Wall Street Journal reported that Apple was speeding up plans to move most of its iPhone operations to other countries. In a report on December 5, analyst Ives commented that zero-Covid policy in China has caused Apple to have an unprecedented shortage of iPhones in the year-end shopping season.
He estimated between 10 and 15 million iPhones lost at the most critical time due to manufacturing problems in China. He also likened Apple to have been “robbed of Christmas”. He believes that due to the scarcity of iPhone 14 Pro, customers will switch to cheaper phones, while others wait until next year.
In May, Apple announced that it had begun manufacturing iPhones outside of China, partly because Covid-19 affected its partner Foxconn’s factories in the mainland. However, in recent weeks, the blockade and protests in “iPhone city” have made Apple more determined.
This news is extremely concerning because “China is one of the factors that make Apple’s historical success”. Experts say that some countries, including Vietnam, will benefit from the transition.
According to Ives, Vietnam and India can contribute 50% of global iPhone production by 2025. There will be inevitable difficulties in terms of logistics, engineering and infrastructure for iPhone manufacturers, but he Apple has no other choice.
Another famous analyst shares the same thoughts as Ive. Mr. Ming Chi Kuo predicts iPhone production in India will increase at least 150% next year. Currently, India is responsible for 2% to 4% of all iPhones manufactured globally. The Indian government also offers incentives to attract big technology firms like Apple to its country.
Meanwhile, Gene Munster analyst at Loop Ventures, predicts 35% of iPhones will be manufactured in India. “I think Apple will add iPhone production in countries other than India or China in the next five years. It could be Vietnam, Malaysia, the US,” Munster replied on CNBC.
At the same time, Foxconn announced to gradually restore capacity at the Zhengzhou iPhone factory after controlling the epidemic situation. The company is rushing to recruit new employees to bring capacity back to normal.
According to the list of supply partners for 2021 just announced by Apple, there are 25/180 partners located in Vietnam, accounting for about 13%. A few familiar names appearing on the list are Foxconn, Luxshare, Samsung, LG Display, Intel.
@ Vietnamnet
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Source: Vietnam Insider