Apple has apparently notified contract manufacturing partners that it is aiming to diversify its production outside of China.
Although some of Apple’s products are already produced in countries like Vietnam and India, the vast majority of Apple’s manufacturing takes place in China, at Foxconn and Pegatron facilities.
According to the Wall Street Journal, Apple has been considering geographic expansion plans for a while, although the pandemic may pause any immediate changes. The recent COVID-19 lockdowns in Shanghai may have also highlighted the need for geographic diversity.
China is also risky geopolitically. Its ongoing clashes with the United States on trade is also problematic.
China, for its own part, is one of the few countries large enough to meet Apple’s huge order requirements, especially with its comparatively cheap, qualified labor.
Apple production partners like Foxconn have already established facilities in India to help produce iPhones for the domestic market there. A further expansion would see iPhones made in India and then exported for global sale.
Stay tuned for additional details as they become available.
Via 9toMac and the Wall Street Journal