Apple, China Relationship Called ‘Untenable’ Amidst Criticism

Andi C., Tech Times 18 January 2023, 02:01 pm

As a result of criticism from senators on both sides of the political spectrum, Apple's relationship with China has been dubbed "untenable."

The fact that the final assembly process still requires a significant amount of labor is one of the main obstacles to the widespread transfer of production lines. Only yesterday was it discovered that Chinese firms' iPhone assembly lines need more than ten times as many people as comparable lines for Android phones.

However, 9to5Mac reports that one former Apple engineer tasked with developing ways to automate production estimates that disentangling that relationship will take more than 20 years.

Apple has been working with Foxconn on automating final assembly for many years with the goal of having entire iPhone plants run by only a few workers. However, one former engineer assigned to this project estimates that this goal is at least 20 years away.

The strict Covid-19 regulations in Beijing had forced hundreds of employees to leave the Foxconn-run "iPhone City" megafactory in Zhengzhou the month before. Foxconn has been Apple's production partner for 25 years. Police in riot gear violently reacted to the protests of those who were trapped in the factory.

Why Apple, China Relationship Is Called 'Untenable'

According to the Financial Times, Republican Senator Josh Hawley stated that Apple is so reliant on China that it cannot uphold fundamental American principles. Both parties have prominent detractors of the firm.

"When the communists in Beijing tell Apple to jump, it asks, 'How high?'" Hawley says. "Apple's relationship with China is untenable, both economically and morally."

Apple is under pressure from investors, politicians, and business leaders to reduce its reliance on Chinese manufacturers drastically. President Biden has only strengthened Washington's stance against Beijing by restricting additional Chinese companies' access to cutting-edge US technology, notably semiconductors, which has loomed large under the Trump administration.

Apple's Supply Chain Disruption in China

Apple also acknowledged "severe" supply chain interruptions were a result of the upheaval. Analysts now estimate that 78 million iPhone handsets were shipped during the profitable holiday season, leaving at least 6 million unfilled orders.

Emerging COVID-19 cases were first discovered at Foxconn's Shenzhen, China, facility in March 2022, which led to a brief suspension in the production of Apple products. According to Tech Times, Apple's shares have reportedly dropped after its iPhone factory in China saw delays in production from a COVID outbreak.

The world's most significant iPhone assembly plant recently experienced COVID-19-related downtime, which was believed to have cost the corporation $1 billion per week.

Apple's best chance of moving production outside of China is thought to be in India. Research from last year predicted that by 2025, a quarter of all iPhones might be produced in India, and one from last week said that by 2027, half of all iPhones might be produced there.