Tim Cook is losing his Apple bet on China

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“Tim Cook and Apple Bet Everything on China. Then Coronavirus Hit.” Wall Street Journal reports today that Quarantines, tariffs and slumping sales have caused agitation about the company’s strategy of assembling most of its products there.

Just days ago, Tim Cook said on Thursday that he believes that China is getting the situation related to the COVID-19 coronavirus under control.

“I mean, if you look at the numbers, they’re coming down day by day by day. So I’m very optimistic there,” Cook said in an interview with Fox Business.

Cook’s optimistic remarks are one of the first signs that China’s supply chain has started to get back to work. Apple warned in February that it will not meet its March quarter sales forecast because the coronavirus could hurt iPhone supply around the world, as well as lower demand in China related to the coronavirus.

“When you look at the [iPhone] parts that are done in China, we have reopened factories so the factories are working through the conditions to open, they’re reopening,” Cook told Susan Li in an interview in Birmingham, Alabama. “They’re also in ramp. So I sort of I think of this as the third phase in getting back to normal, and we’re in phase three of the ramp mode.”

China is a key country for Apple in terms of part supply and production. So many iPhones are manufactured at a Foxconn factory in the Chinese city of Zhengzhou that it’s nicknamed “iPhone city.”

Though Cook didn’t touch on this in Monday’s interview, Foxconn — which is the world’s biggest iPhone manufacturer — is said to be offering workers bonuses of more than twice their monthly salary to entice them to come work in the company’s gradually reopening factories.

Few people would agree to what Tim Cook said of the coronavirus to be under control in China. Tim Cook has repeatedly ignored warning from the U.S. government, and his bet of coming too close to the Chinese Communist regime must let him pay a huge price.

By Lianlong Jushi

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