As American firms strive to lessen their dependence on China, Apple Inc. (NASDAQ:AAPL) stands to suffer the most if the economic tension continues to rise, says Walter Isaacson, a well-known biographer.
A report on Business Insider revealed the insights from Isaacson, who is known for his biographies of late Apple co-founder Steve Jobs and Tesla CEO Elon Musk. According to him, Apple will find it challenging to decrease its reliance on China, which manufactures the majority of its products.
“Most companies are trying to decrease their dependence on China, but it’ll be the hardest for Apple to do that,” Isaacson stated during an interview with CNBC’s “Squawk Box.”
He added, “We’re going to have to try to strike some equilibrium between total disengagement, which in my mind is not going to work, and total dependence, which we’ve been a little bit too dependent on them.”
Isaacson's comments came shortly after Apple CEO Tim Cook's recent visit to China, where he met with Chinese commerce minister Wang Wentao. This visit occurred amid reports of sluggish iPhone 15 sales in the country, one of Apple’s largest markets.
Apple’s production side also faces difficulties in China, where over 95% of iPhones, Macs, AirPods, and iPads are manufactured. Chinese authorities have reportedly begun inspecting Taiwan-based Foxconn, a significant iPhone supplier, over taxes and land use.
Moreover, China is contemplating a crackdown on a loophole that allows citizens to access forbidden apps via Apple’s App Store, adding to Apple’s worries in the region.
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