Why does Apple Seem Like the Brand symbol of China?

Apple and China have had close mutual relations for years. China is a congested country with people, not only important for the production of Apple’s products but also plays an important role in selling these products.

Anyway, this beneficial relationship saw several up and down because of china’s ‘zero Covid” planning due to rigid SOPs in the country that cause heavy damage to the manufacturing of Apple and its partners including Foxconn. and Pegatron.

The disturbance of the global chain is heavily affecting the world as well as China. Tim Cook, the Apple CEO, alerted china about this disturbance to the global chain and warned them that will cost them $8 billion in the next quarter. 

China is still following pandemic measures, and Apple is suffering due to this. Before the pandemic time, Apple hopes to compete with the US in the trade war. Apple faced an issue, not for the first time. It faced a thorough investigation of working situations.

Experts think that Apple will soon dispose of china for its sustainable future, but some people think the time will decide what will happen as it is all about big investment.

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Cook’s tenure is known for the company’s strong bond with China. in 1998 he joined Apple, and at that time company is not manufacturing products there. He paid many visits to china as chief executive by highlighting Apple’s importance in the country.

According to a Wall Street Journal the giant tech company is looking to increase its production in other countries like India, and Vietnam, the reason behind this is china’s strict covid policy.

Apple did not utter a word about these rumors, but maybe in the future, Cook says, because the supply chain covers the whole world, and so production should not cease but can be increased in other countries too. He also says every day on our mistakes, we learn to gear up and brought changes. So, by looking at his words, we can assume such changes occur in the name of improvement.

China has devoted many years to establishing and promoting manufacturing encouragements, local engineering talent, and an organized business network that is difficult to imitate. As Cook said in a 2015 interview, china is the only place where “you have multiple ball fields.” 

Large business market

We must appreciate China’s worth as it is the largest market for Apple outside of the US. Apple has an 18 percent share of the Chinese smartphone market.

Fed Alvin, director of the management and technology program at the University of Pennsylvania, says although China is a growth market Chinese government is risking the rocking boat of Apple.

It is a rare thing for Apple to give promotional offers, but recently Apple gave the latest iPhone model 600 yuan ($89) off for a limited time. We can take is a matter of concern about Apple’s demand in the country.

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Constant threats

Apple could not only face hurdles because of rigid Covid lockdowns in China, along with its cold war of Beijing and Washington over Taiwan. Taiwan has many of Apple’s essential suppliers, like Foxconn, Pegatron, and Wistron globally, which provide semiconductor chips for most electronic devices.

The senior vice president at strategic advisory firm Dentons Global Advisors Paul Triolo told CNN Business the Covid-19 lockdown will cause some companies to transform their construction locations, but a zero-Covid policy will not cause problems. An increase in Taiwan is a more important signal in seeing China’s future as a construction hub. He further told that military conflict would charge Taiwan much for Apple’s activities. It seems Apple is no choice but to move on.

“China has already gotten more expensive for years, but what happened last year made it more volatile,” Elvin said. He further said is not possible to find another place that can fulfill Apple’s needs.

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