Tuesday, December 6, 2022

Apple Wants To Shift Some Of Its Production Out Of China

Zhengzhou is home to a giant Foxconn facility known as iPhone City, where a worker is shown at right disinfecting equipment. (Shang Ji/Future Publishing/Getty Images)  

Zero Hedge: Apple Accelerates Plans To Shift Production Out Of China 

Apple has accelerated plans to shift some of its production outside of China, the Wall Street Journal reports, citing insiders. 

The company has been reportedly telling suppliers to 'actively' plan on assembling Apple products elsewhere in Asia - primarily India and Vietnam, as the company looks to reduce dependence on Taiwanese assemblers spearheaded by Foxconn. 

The company's goal is to ship 40-45% of iPhones from India, vs the current single-digit percentage, according to TF International Securities analyst, Ming-chi Kuo. Vietnam is also expected to shoulder more of the manufacturing of other Apple products, such as AirPods, smartwatches and laptops. 

Read more ....  

Update: Apple Speeds Up Plans to Move Production Away from China (Mac Observer)  

WNU Editor: It is not going to be easy. China has benefits for large companies like Apple that other countries cannot match. China is also now positioned to benefit from cheap and reliable Russian energy exports after the EU's decision to end this trade with Moscow. This shift in energy markets has huge geo-economic consequences that I do not think the West has properly calculated. 

And while places like India look tempting for Apple and other multinational companies, I have visited India more than once, and there are even more political/social/and economic problems in that country than China.


Hans Persson said...

How is China even going to do anything now with the advanced chip ban?

Anonymous said...

The CEO of Apple became CEO, because he was the logistic mastermind of Apple. He can get it done if he wants to.

Anonymous said...

India is a surprising pivot. They’re just as much “on the other team” as China, Russia, etc.

Anonymous said...


They could reshore.

You learn or relearn things as manufacturer, 3rd party supplier, etc by actually making things even if the design has not changed in a long time.