How Much China Exposure Does Apple Have? Is Cupertino Serious About Diversifying Supply Chain? Munster Offers His Insights

Zinger Key Points
  • About 75-80% of Apple’s product sales and 60-62% of overall sales is made in China, says Gene Munster.
  • CEO Tim Cook has time on hand to pilot supply chain diversification at Apple, he says
How Much China Exposure Does Apple Have? Is Cupertino Serious About Diversifying Supply Chain? Munster Offers His Insights

The U.S.-China relationship, which was beginning to mend, has taken a turn for the worse in the wake of House Speaker Nancy Pelosi’s visit to Taiwan, which China calls its territory.

Pointing to a recent white paper published by the Xi Jinping administration, Loup Ventures co-founder Gene Munster said he sees the pressure building.

China “will tolerate no foreign interference in Taiwan,” the Asian nation reportedly said in the white paper.

Apple’s China Exposure: About 75-80% of Apple’s product sales and 60-62% of overall sales are “Made in China,” Munster said in a note. Additionally, 18% of the company’s annual revenue comes from Greater China.

“Compared to other big tech companies, I believe that Apple has the most China exposure,” the venture capitalist says.

On Apple’s March quarter earnings call, CEO Tim Cook complimented the company’s supply chain, saying that it’s a “fast-moving” supply chain, with short cycle times.

“There’s very little distance between a chip being fabricated and packaged and a product being – going out of factory,” he reportedly said.

Once the China COVID headwinds ease, Munster expects the Apple-China flywheel speed to increase, benefiting earnings.

Read Ray Dalio-run Bridgewater Associates' portfolio changes in Q2

Supply Chain Diversification Efforts On: Apple is in the process of reducing its reliance on China, Munster said. Although it may take years, in the end, the company will be successful in building production and a strong user base outside of China, he added.

Given Cook has had decades of experience in navigating geopolitical challenges, he may have realized the gravity of the current situation and the need for lessening exposure to the region, the fund manager said.

With Cook likely to retire between 2026-2028, he has time to position the supply chain for the next decade, Munster said.

Apple’s Diversification Efforts: Munster thinks Apple is serious about diversifying its supply chain. He listed the following as recent measures toward this direction:

  • Apple announced in 2018 about $350 billion for U.S.-based development and job creation.
  • About a year later, the company announced plans to build two $1 billion campuses — in Austin, Texas, and in North Carolina’s Research Triangle Park.
  • In April 2021, the tech giant said it would add $80 billion and another 20,000 jobs to its original $350 billion investment, bringing the total investment to $430 billion over a five-year period.

“After the current investment commitment ends in 2026, I expect the company to invest within the US at a similar incremental pace of about $17B per year,” Munster said.

Apple closed Friday’s session 2.14% higher at $172.10, according to Benzinga Pro data.

Posted In: EurasiaGene MunsterLoup FundsAnalyst ColorAsiaGovernmentPoliticsAnalyst RatingsTechGeneral

11 Best Black Friday Deals on Amazon

11 Best Black Friday Deals on Amazon

The best Black Friday deals from Amazon are still coming hard and fast because the holiday is not yet upon us and the mega-retailer prefers to keep consumers on the hook for as long as possible—spending as much money as possible. 

To that end, here are some of the best Black Friday deals from Amazon that you might want to consider today.

Calphalon 10-Piece Pots and Pans Set

Regular Price: $172

Sale Price: $138.88

Calphalon’s 10-Piece Pots and Pans Set is designed with stainless steel, stay-cool handles along with pour spouts. The nonstick surface is PFOA-free and built with hard-anodized aluminum that is both durable and conducts heat extremely well. The set includes 2 fry pans, a sauce pan with cover, saute pan with cover and large stock pot with cover.

Apple AirPods 2nd Generation

Regular Price: $144

Sale Price: $85.49

The 2nd Generation AirPods from Apple connect to all Apple devices and give you an enhanced listening experience. Plus, they come with a case that keeps them safe and allows you to charge them in a secure environment. With over 24 hours of battery life, access to Siri and easy setup, you can start listening to your favorite tunes or podcasts today.

Adidas Ultraboost 21 Running Shoes

Regular Price: $129.98

Sale Price: $89.98

The Adidas Women’s Ultraboost 21 running shoe is perfect for anyone who likes a short run, maybe a 5K, half marathon or more. Coming in several colors and styles, you can slip these shoes on, enjoy the cushioned outsole, sink into the supple insole and secure laces.

Ninja AF101 Air Fryer

Regular Price: $129.99

Sale Price: $97.83

The Ninja AF101 Air Fryer allows you to crisp, roast, reheat and even dehydrate food products faster and cheaper than ever before. It has a 4-quart capacity and offers a wide temperature range along with several time settings so that you can customize each dish to your needs. Plus, all the parts are dishwasher safe.

Beats Solo3 Wireless On-Ear Headphones

Regular Price: $199.95

Sale Price: $99

Beats by Dr. Dre are among the best headphones on the market, and the Solo3 Wireless On-Ear Headphones include the Apple W1 chip, Class 1 Bluetooth and 40 hours of battery time. These headphones even have a built-in microphone and offer an adjustable fit so that you can be comfortable whether you’re listening to an Android or iOS device.

Hoover Power Scrub Deluxe Carpet Cleaner

Regular Price: $198.98

Sale Price: $175.98

The Hoover Power Scrub Deluxe Carpet Cleaner allows you to keep your home spotless and clean up after your pets. The cleaner comes with the Hoover Paws and Claws Deep shampoo and a storage mat to keep the floor dry once it’s put away.

LG CordZero Auto Empty Cordless Stick Vacuum

Regular Price: $999.00

Sale Price: $851.71

The LG CordZero Auto Empty Cordless Stick Vacuum and Wet Mop All in One Tower is designed to work in homes with several pets or children and clean up all the messes that life brings. The battery lasts up to 2 hours, and there’s an extra removable battery that gives you even more cleaning time and power.

Breville Fresh and Furious Blender

Regular Price: $278.60

Sale Price: $199.95

Breville, a top name in blenders and juicers, offers the Fresh and Furious Blender, featuring 50-ounce capacity, Vac Q technology, pre-programmed cycles, LCD display and lid with pull ring. With the Fresh and Furious Blender, you can make everything from a smoothie to a soup and everything in between.

Hot Tools Professional 2000 Turbo Ionic Hair Dryer

Regular Price: $89.99

Sale Price: $55.63

The Hot Tools Professional 2000 Turbo Ionic Hair Dryer is designed for professional use, but it works perfectly in the home. With 1875 watts of power, 6 heat and speed settings and a lightweight design, you can easily style your hair and utilize the diffuser, cut back on the frizz and stretch the 8 ft cord for maximum functionality.

Columbia Heavenly Long Hooded Jacket

Regular Price: $160

Sale Price: $97.38

The Heavenly Long Hooded Jacket from Columbia is designed to be light for everyday use, but it’s heavy enough to protect you from the cold. The plush fleece lining, security pocket, water resistant fabric, 2-way zipper, and zippered hand pockets make the jacket both protective and functional.

ConAir InfinitiPro Hair Dryer

Regular Price: $49.99

Sale Price: $29.99

ConAir is one of the biggest names in hair and beauty, and the InfinitPro is an 1875 watt hair dryer designed for professionals with ceramic technology. The dryer comes with a diffuser and concentrator, and it allows you to blow out your hair just the way they would at the salon.

Deals the Experts Are Hoping For

Experts believe that Amazon’s Black Friday sale could linger for quite some time. It all started with the Prime Early Access sale on October 11 and 12. Previously, Amazon has offered the “Epic Deals” sale that ran through late October. 

This is to say that any sale could come up at any time. 

Even so, those monitoring Amazon are looking forward to a few potential deals, including:

  • Apple Watch
  • AirPods (any generation)
  • MacBook Pro
  • Large, underpriced TVs
  • Amazon Echo
  • More small home appliances (Dyson or Shark vacuums, Instant Pots, etc.) 

While these predictions are based on last year’s Amazon Black Friday Sale, it’s important to remember that most Black Friday sales are fairly consistent and push the products that are most likely to sell.


Featured image sourced from Shutterstock

Posted In: Partner ContentGeneral