Apple may produce more in India and Vietnam rather than in China
Although iPhone manufacturer Apple has had some of its devices made in other countries for some time, the majority of the models are made in Chinese factories. In order to become more independent from China, Apple could soon outsource production.
Manufacturing in China has been of great benefit to Apple over a long period of time, as the Foxconn and Pegatron factories have a large workforce and the devices can be manufactured there cheaply. In the meantime, however, dependence on China has become a not inconsiderable problem. As part of the People’s Republic’s strict anti-Covid strategy, some factories are subject to ongoing lockdown measures, preventing production from continuing. In addition, there are ongoing trade disputes between China and the United States, which could impose restrictions and also halt production.
The expansion has been planned for a long time
As a result, Apple has the Wall Street Journal according to well-advanced plans to increase production capacity outside of China. The manufacturer has been planning the geographic expansion for quite some time and will only waive it during the pandemic. However, the recently imposed lockdown in the Chinese city of Shanghai has led to massive delays in the production of Apple devices, forcing the company to expand its facilities in other countries.
Despite the problems associated with China, it is difficult for other states to compete with the People’s Republic. China is the only country large enough for the required order quantities and offers a cheap and skilled labor force. The expansion of the alternative production facilities in India and Vietnam is therefore likely to take some time. Apple partners such as Foxconn have already built factories in the countries to serve global markets. In the future, the models manufactured here could also be exported to other regions. However, a concrete timetable for this has not been published.
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