People inside Apple raised concerns about the company's dependency on China well before the coronavirus outbreak, but higher-ups pushed back against such warnings, saying a clean break from Beijing is impossible.
Operation executives argued in 2015 that the company should switch some forms of production to Vietnam, The Walls Street Journal noted in a report Tuesday. Such a move would allow Apple to create a new hub outside China - but senior executives say the task would be too arduous.
TheWSJ relied on sources familiar with the internal discussions.
And now, five years later, Apple is warning investors that the coronavirus outbreak in China will prevent the company from hitting its sales estimate. The tech giant's market value has plummeted, dipping nearly $100 billion since reports began fleshing out the impact the virus is having on China's populace.
"No executive will admit in a public forum: We should have thought about" the ramifications of failing to diversify production, Burak Kazaz, a Syracuse University supply chain professor, told The WSJ, noting how dismissing the problem has now come back to bite executives. "But from this point on, there are no excuses."
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