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Apple has Accelerated Plans for its Production Out of China and into Thailand

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Apple has Accelerated Plans for its Production Out of China and into Thailand

(CTN News) – China, the most important nation in the company’s supply chain, will no longer be the location of Apple Inc.‘s manufacturing.

To lessen the dominance of Foxconn Technology Group, suppliers are being instructed to prepare for migrations abroad in Asia, notably to India, Thailand, and Vietnam.

According to analyst Ming-Chi Kuo, the major manufacturing facility outside China for Apple’s next MacBooks may be Thailand. Kuo pointed out that all Apple’s MacBook Air and MacBook Pro models are presently built at plants in China.

Up to 300,000 employees at iPhone City, a sizable city inside a city in Zhengzhou, China, were engaged in violent demonstrations last week. iPhone City formerly produced about 85% of Pro iPhones.

A Foxconn factory in Shen 008

According to Bangkok Post, Apple no longer feels comfortable having so much of its business tied up in one spot after a year of turbulence in China’s manufacturing industry.

Former US executive for Foxconn Alan Yeung remarked…

“In the past, nobody paid much attention to the hazards of focus. The standard was free commerce, and everything was relatively foreseeable. We’ve now stepped into a new realm.

Apple’s response is a larger pool of assemblers, even if some are still headquartered in China.

Apple wants its manufacturing partners to start attempting to undertake more of their work outside of China, the company has informed them.

However, deploying staff to new suppliers and nations has become challenging due to the weakening global economy.

Change won’t happen suddenly since Apple and China have spent decades forging a bond in a partnership that has mostly benefited both parties up until this point.

Every year, Apple releases new iPhone models and regular upgrades for its laptops, iPads, and other goods.

However, the transformation is already in motion due to two factors. Chinese teenagers are no longer keen to labor on manufacturing lines for little pay.

And even though many other nations have reverted to pre-pandemic standards three years after Covid-19 first began spreading, China is still attempting to contain outbreaks via the use of quarantines.

All of this comes after more than five years of escalating military and economic tensions between the US and China and US tariffs on Chinese imports.

In the long run, Apple wants to ship 40% to 45% of its iPhones from India, up from the present single-digit number.

According to suppliers, Vietnam is anticipated to handle a greater portion of the production of other Apple devices, including AirPods, smartwatches, and laptops.

For the time being, shoppers must endure some of the heaviest wait times for expensive iPhones.

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Apple has Decreased its Exposure to Chinese Manufacturing Since COVID-19

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