Apple gradually decreases its iPhone and iPad production in China and starts shifting the bulk of its manufacturing operations to India and Vietnam.
Apple is reducing the production of its iPhones, iPads, Macs, and other products in China and shifting more of its manufacturing volume to Vietnam and India. This is despite earlier optimism expressed by some business analysts that the US-China trade war will ease under the new administration of President Biden. In a sign that Apple intends to proceed with its plan of decreasing its iPhone and iPad production in China, the tech giant announced recently the shifting of the bulk of such operations to India and Vietnam.
Apple Shifting More iPhone and iPad Production to India and Vietnam https://t.co/Jy743Uwnn7 by @julipuli pic.twitter.com/3hFCxuJQTc — MacRumors.com (@MacRumors) January 27, 2021
Nikkei Asia, citing industry sources, report that Vietnam will start mass-producing iPads as early as the middle of 2021, marking the first time that Apple will manufacture a substantial number of such devices outside of China. The Cupertino tech giant is also scaling up its iPhone production in India starting with its manufacture of the latest iPhone 12 series in the first quarter of 2021. With Apple slowly moving its iPad and iPhone production out of China and shifting them to other countries like Vietnam and India, business analysts hope China will not retaliate in one way or another.
Moving Out Other Devices Too
Reports reveal that the Cupertino tech giant is also increasing the production capacity of its earphones, smart speakers, and computers in some Southeast Asian countries as part of its continuing diversification strategy. If these plans come to fruition, then Apple's decision to move the production of iPad and iPhone out of China and shifting them to Vietnam and India is only a beginning. Industry observers believe that it is only a matter of time until Apple moves the production of most of its major products out of China.
According to reports, Apple informed its suppliers in Vietnam to prepare to expand their production capacity for the company's latest HomePod mini, the cheaper version of its voice-activated smart speakers. Industry sources also said that aside from gradually moving its iPad and iPhone production out of China, Apple is also starting to increase the production of its audio-related devices and accessories in Vietnam and India.
Apple Wants Out-Of-China Production Capacities
A supply chain manager revealed to news media outlets that Apple, along with many other big tech companies, wants out-of-China production capacities. He said that this started long before the Biden administration took over. This explains why Apple is moving out its iPhone and iPad production out of China and shifting them to other countries like Vietnam and India. "Apple aims to build capacity in new locations for multiple core products, such as MacBooks, AirPods, and others. It was hard to imagine that two years ago, but now, nothing is impossible to shift," the supply chain manager revealed.
