In the latest events, one of the world’s most valuable companies, Apple has moved its production from China to Taiwan. This Cupertino based tech giant has taken this decision due to the outbreak of the coronavirus in China.

China is the central hub where all the Apple products are mainly manufactured, from AirPods to the Mac Pro; everything is built in China.

But the move only includes the production of Apple Watch, iPad and the AirPods. In China, there were speculations that the production will begin at a normal rate within the first ten days of March despite the virus outbreak. But that doesn’t seem to be the case now for Apple, as the production is still in the water.

A reliable local media company Taiwan News reported earlier that the company might also bring the Macbook Air and Macbook Pro production to Taiwan as well. Earlier it was revealed that about one-third of China’s production lines would lay idle till the end of February. But with such a widespread outbreak of coronavirus, the situation has only worsened.

Where would the new iPhone be made?

The company is set to launch a new iPhone in the month of March. So with this current situation in China, the company might shift the production of a new iPhone to Taiwan as well. It is estimated that if the output of iPhones stops for even a week, Apple can miss out on producing a million iPhones.

iPhones have been the primary source of income for the company since the iPhone 6 launch. So I expect that the company might have contingency plans in line for certain emergencies such as coronavirus outbreak.

For now, it is uncertain as to when the production will begin in China. The outbreak has reached some alarming numbers in the past few days. As per WHO’s report a few days ago about 1,909 new cases were registered in 24 hours, while 98 were declared dead. Now the official number says over 2,000 are being detected with the virus. The risk assessment in China is still ‘too high’.

The timing for the virus outbreak could not have been worse for Apple. The company is predicted to face the lowest smartphone sales in the last five years. The laptop sales are down by one-third of the total number and wearables are about 16% down compared to the initial expectation.

It also seems like that partly shifting the manufacturing to Taiwan won’t solve much of Apple’s problems. There are still a lot of components small and medium-sized that are manufactured in China. If the outbreak prolongs further then the contract manufacturers will definitely run out of components to make our beloved iPhone.

Update:

Google and Microsoft are also looking to make the shift of the hardware production to countries like Thailand and Vietnam. Google is already in talks with it’s partners in Thailand to set up production lines for their smart home products like voice assistant speakers.

While Microsoft is looking to transfer it’s hardware production to Vietnam. It will manufacture it surface line up of notebooks and desktop pc in the second quarter this year.

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