As of now, Apple produces most of the products in China and now as per the latest report, the company is looking to diversify its supply chain to other countries as well. Following this, its contract supplier, Foxconn has recently got clearance from the Vietnamese government to set up a plant in the country which will be used for the production of iPads and MacBooks.
In the future, the company is planning to shift its production units from China to countries like India and Vietnam due to the US-China tensions. Although the tension could release after the arrival of Joe Biden, who is the new US president. Deprive of this fact, the Cupertino tech giant has already made its mind to transfer its production units.
Apple is looking to expand its production in India which is currently the second-largest country in terms of iPhone production. In addition, the company is also looking to produce its iPhone 12 model in the country, which will start within this quarter.
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Also in Vietnam, the production of iPad is likely to begin as early as the middle of this year. This will be the first time that the iPhone maker will make this number of devices outside China. This is what one of the supply chain manager of Apple said.
“Apple and many other tech companies all want out-of-China production capacities, and that has not slowed even though the U.S. has a new president,” one supply chain manager said. “And they are studying not only peripheral products. Apple, for example, aims to build capacity in new locations — mostly Southeast Asia nations — for multiple core products, such as iPhones, iPads, MacBooks, AirPods and others. It was hard to imagine that two years ago, but now, nothing is impossible to shift.”
Furthermore, as a part of the diversification strategy, the company is also looking to increase the capacity of smart speakers, earphones, and computers in South Asian countries.
(Via)
