As China’s relationship with the West continues to sour — not to mention problems surrounding the country’s zero-COVID strategy previously impacting production — pressure seems to be mounting on Cook to chart a path that both dramatically reduces Apple’s reliance on China and doesn’t upset Beijing enough to cause damage in the near term. India presents an obvious solution, but it will require close coordination and massive investment. Bloomberg analysts estimate it would take eight years to move just 10% of Apple’s manufacturing capacity out of China, where roughly 98% of the company’s iPhones have been made.
While it’s still a small fraction of Apple’s total manufacturing, recent research by Counterpoint indicates that the shift to India has already started with smartphone shipments from the country growing 65% over the last year.
Of course, this isn’t the only thing that Cook has going on in the kitchen. In just a few weeks, the tech world will descend on Apple HQ for their Worldwide Developers Conference. Rumors have been swirling about what could be the first major new Apple product category in nearly a decade with the unveiling of a “mixed-reality” headset that blends augmented and virtual reality. Reports suggest the headset would compete with incumbent gaming headsets but also expand Apple’s reach into the personal fitness world and perhaps offer virtual fitness classes. Apple has yet to officially announce such a product.
More: Is China headed for a crash?
Sponsored
Kiss Your Credit Card Debt Goodbye
Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.
