Apple places more orders with Taiwanese suppliers to lessen its reliance on China
Several tech companies depend largely on China for the provision of materials in order to make their products. However, this dependence has become quite troublesome due to the ongoing geo-political situation and lockdown in China. Such situations are badly impacting the production of these companies. For this reason, several companies are looking for ways that would make them less dependent on China. One such case is with the tech firm Apple. It is reported that Apple is now looking for some other options besides China to diversify its suppliers. Most probably it is going to increase its orders from Taiwan.
Ming-Chi Kuo, an analyst, reports that by the second half of 2023, AOET will begin the shipments of lenses that could be sued for the production of iPad. As of now, AOET is the main supplier of lenses. These lenses are supplied for Macs. According to the analyst, the company could follow the same footprints as Sunny Optical. The latter was responsible for supplying iPad parts initially. Later on, it was successful in gaining orders for iPhone parts.
But as per the analyst, the interesting thing to notice here is the strategy adopted by the tech firm Apple. Kuo points out how Apple is utilizing AOET for reducing its reliance on China. Where AOET is a Taiwan-based company. It appears that Apple is slowly and gradually shifting its production line to other regions.
In December 2022, several reports indicated that the tech company might begin the production of iPads in India. It will be for the first time that the company starts the production of iPad in India. On the other hand, iPhones are already manufactured there. Just a few days ago, it was reported that an Indian company has begun the supply of parts of AirPods to Apple. Besides this, the company has shifted the manufacturing of Apple Watch and MacBooks to Vietnam. While some models of iPhone are even assembled in Brazil.
With the onset of the COVID-19 pandemic, no precise policing by the government has been observed. The factories and suppliers in China suffered from lockdowns. Side by side the political tension between Taiwan and China has even made the situation worse.
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