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Apple Wants to Increase Production Outside of China: Report

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Apple Wants to Increase Production Outside of China Report

(CTN News) – Apple is reportedly telling some of its manufacturing contractors that it wants to increase production outside of China due to COVID lockdowns. According to The Wall Street Journal’s Saturday report based on information from anonymous sources, India and Vietnam are among the top candidates for manufacturing increases.

Over 90% of Apple’s products are made in China by contractors, the Journal reported, but tensions between China’s communist government and the US make the company’s reliance on China risky. COVID lockdowns in China have led to supply-chain delays as well. According to Reuters, the lockdowns in parts of China could result in a shortage of millions of iPhones.

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In 2019, the Journal reported that Apple was considering moving some of its production to other countries amid trade tensions between China and the United States. Apple has renewed its focus on the issue after the pandemic interfered with its plans.

The Journal noted that China remains a desirable place to manufacture devices because of the country’s solid manufacturing ecosystem, skilled workforce, low costs, as well as its large domestic market. According to the Journal, China accounts for about one-fifth of Apple’s global sales.

According to the Journal, Apple considers India its next best location because of its low costs and large population. Apple products are already sold in India, where iPhones are already made for the domestic market.

According to the Journal, China-based contract manufacturers have difficulty setting up in India due to strained relations between the governments of the two countries, which makes Vietnam and other Southeast Asian nations attractive.

A request for comment from Apple was not responded to.

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