Apple industry analyst Ming-Chi Kuo is backing up recent rumors that Apple is working with more Chinese suppliers, while also looking to build more non-Chinese production locations.
Recent reports have indicated that Apple is working to diversify its supply chain by spreading device production around, in an effort to avoid supply shortages that the company has faced over the last few years.
In another tweet, Kuo says that Apple faces two challenges.
“Challenge 1: Impact of geopolitical risks on sales in China (Apple’s most important overseas market),” he wrote. “Solution: Do business with more Chinese suppliers.”
“Challenge 2: Impact of geopolitical risk on supply efficiency,” he continued. “Solution: Build more non-Chinese production locations.”
Kuo adds that, “Apple has already been implementing both solutions and is expected to accelerate progress in the foreseeable future.”