Apple has instructed several of its contract manufacturers that it wants to increase production outside of China, citing Beijing’s strong anti-coronavirus stance among other factors. According to the Wall Street Journal, sources reveal that India and Vietnam, which currently account for a minor amount of Apple’s global production, are among the nations that the corporation is considering as alternatives to China. According to estimates, independent contractors manufacture more than 90% of Apple products such as iPhones, iPads, and MacBook computers in China.
Apple’s reliance on China is a possible risk, according to observers, because of Beijing’s repressive Communist regime and its conflicts with the US. When WSJ approached an Apple spokesman, he declined to comment.
According to those familiar with Apple’s manufacturing plans, the company sees India as the next China because of its big population and low costs.
With the exception of India, China has a pool of qualified workers that exceeds the population of several Asian countries. Apple has worked closely with local governments in China to guarantee that its contractors have enough land, personnel, and supplies to assemble iPhones and other devices in massive plants.
In April, Apple CEO Tim Cook said, “Our supply chain is truly global, and so the products are made everywhere.” He also said, “We continue to look at optimising.”
Before COVID-19 spread over the world in early 2020, Apple was trying to diversify away from China, but the pandemic hindered its ambitions. According to people familiar with the negotiations, Apple is pressing again and directing contractors where they should search for new manufacturing capacity.
Because of China’s travel limitations, Apple has only sent a few executives and engineers into the country in the last two years, making it difficult to inspect production locations in person. Power outages in 2021 further tarnished China’s reputation for dependability.
Lockdowns imposed by China’s anti-Covid policies in Shanghai and other locations have caused supply-chain difficulties for several Western enterprises. Apple warned in April that the reappearance of COVID-19 could cause problems.