Apple Inc (NASDAQ:AAPL) is reportedly asking its suppliers to speed up production as Chinese Premier Xi Jinping's Zero COVID policy hampers manufacturing business around the country.
What Happened: According to Nikkei Asia, the tech giant has instructed its suppliers to speed up the development of the iPhone due to the delayed schedule for at least one of the new phones.
This came after COVID-19-induced lockdowns in China forced iPhone's premium assembler, Pegatron Corp, to suspend operations at its Shanghai and Kunshan plants in April.
Several parts of China continue to remain locked as the coronavirus rattles at the door of the world's second-largest economy.
The Tim Cook-led company also sounded the bell last month, forecasting bigger problems due to China lockdowns snarling production and demand in the country, at a time when the war in Ukraine has already dented its sales and growth.
The report further added, in the worst-case scenario, the iPhone maker expects the manufacturing schedule and initial production volumes of the new iPhone to be impacted.
Meanwhile, Apple is now said to be looking forward to increasing its production outside China. More than 90% of Apple products such as iPhones, iPads, and MacBook laptops are currently manufactured in China. According to reports, Apple considers India as a promising alternative to China to expand production because of its low costs and large population.
Price Action: According to Benzinga Pro data, Apple closed Tuesday's session down1.92% at $140.36.
