Apple is making a new attempt to reduce its dependence on China, according to suppliers. One of the triggers is Covid lockdowns.
Apparently, Apple wants to expand the finishing of its products: The group has instructed contract manufacturers to push production outside of China – including in India and Vietnam. The Wall Street Journal reports, citing informed people. China’s zero-Covid strategy was cited as one of the reasons. The strict lockdowns around Shanghai are already causing significant problems for Apple, important MacBook model series now have delivery times of several weeks.
Apple production in Vietnam and India
There have been significant travel restrictions in the past two years The Wall Street Journal explains that Apple has already been able to send significantly fewer managers and engineers to China to control production. Massive power outages caused further production problems in China last year.
Apple hardware is already being finalized in both India and Vietnam, albeit on a small scale so far. In India, however, Apple has now started to manufacture the latest iPhone generation, instead of just older series. However, the rapid expansion of local production capacity has repeatedly led to massive problems, including riots in one factory and mass food poisoning, apparently due to poor hygienic conditions in the accommodation of another factory.
Apple refers to a global supply chain
Apple regularly points out that its own supply chain is distributed all over the world and the products are therefore “everywhere”. be built. According to estimates, around a quarter of Apple’s suppliers are located in China, but the final production still takes place almost exclusively there – the proportion for iPhones is probably over 90 percent. Trade wars, punitive tariffs and the human rights situation have repeatedly caused rumors and speculation about a relocation of Apple’s final production in recent years.