Bank of America indicated Tuesday that Apple is facing significant risk over its heavy reliance on China. This risk appears to be compounded by devolving relations between the communist nation and both the U.S. and Taiwan.
Wamsi Mohan and other Bank of America analysts noted that Apple’s risks center around policy, production, and domestic demand in China, reported Seeking Alpha.
“Although assembly is moving to other regions, the supplier base remains largely in China, which makes it hard to move all elements out of China,” said the BoA analysts. “Over time we expect Apple to incorporate more vertical integration and system on chip designs to enable higher automation in assembly.”
The Financial Times reported that notwithstanding Apple’s recent efforts to develop a presence in other Asian nations such as Vietnam and India, China still accounts for roughly 20% of the California-headquartered company’s revenue and is where over 95% of Apple’s iPhones, AirPods, […]
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