To diversify its supply chain, Apple is considering bringing some of china’s iPad production to India. The information came to the fore indicating that some of the production could be transferred to Vietnam as part of the technology giant’s efforts to transfer up to 30% of its production chain out of China. MacBooks and Apple Watches may also be manufactured in Vietnamese territory in the coming years.
There are several reasons for Apple to transfer its production to other countries, but the main ones involve avoiding negative impacts generated by the tensions of the “Trade War” between the United States and China.
But recently, Apple has a new reason not to rely solely on factories in China. The Covid-19 outbreak at Foxconn’s Zhengzhou plant, its main supplier of iPhones, greatly affected the production of iPhones. Even after the relaxation of the restriction measures adopted to contain the virus, the company will not be able to meet the technology giant’s demand for 2022.
Production suffered some outages, which caused a delay in iPhone shipments. This could hurt Apple’s end-of-year.
The iPhone 14 was the first product manufactured by Apple to have production transferred to India. While iPhone production in the country is now small, according to The Verge, the intention is to increase local production within the next few years. Experts believe that in a five-year period, about 35% of iPhones will be manufactured in India.