DECOUPLING: Apple’s suppliers have so far spent $16 billion to move from China.
New research by investment bank TD Cowen seen by AppleInsider estimates that Apple’s loss of earnings because of China are considerable, and in part are behind its suppliers moving, or reshoring, to other countries.
“Over the last four years since the start of the pandemic, we estimate Apple’s revenues have been impacted by over $30 billion,” says TD Cowen in the note. This comes from “undersupplying the market due to production disruptions stemming from component supply, available labor pool, and/or government-mandated movement restrictions.”
TD Cowen’s analysts believe that because of this impact on its manufacturing chain, Apple and its 188 major suppliers are all investing to reshore as quickly as possible — and that they will continue to do so.
There’s been a lot of money exiting China with much more to come.