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Thursday, November 24, 2022

The Perils Of Suppliers 

Apple is suffering from labor riots at its Chinese supplier, Foxconn. Workers at a large factory with tens of thousands of employees erupted in protest over pay and being forced to live with those who have caught COVID.  Foxconn apologized for causing a pay mistake, but it was too late to reach production goals for the month. Meanwhile, Apple has a PR problem with critics of its Chinese presence gaining attention.  There isn't much Apple can do.  The Foxconn operation is much too large to move somewhere else quickly outside of China.  Apple over a period of years will need to reduce gradually its exposure to the country and supplier while navigating tensions between the US and the country.  It is and will be a hard job with multiple threats to the company's reputation.


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