But any shift out of China won't be quick, with over 35% of factories supplying Apple currently located in China. Some estimates say it will take until the end of the decade to move 10% of Apple's iPhone manufacturing out of the country. Moreover, what would happen to Apple's generous hardware margins as it attempts to leave China is unclear.
"The reality is that Apple is extremely limited in their options for the holiday season and are at the mercy of China's zero-Covid policy," Ives said."Now it's the painful waiting game to see what ramped production looks like over the next week for Apple to ease some iPhone shortages that are building globally."
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