Apple manufactures many of its main products in China, but over the past years, the company has made various plans to transfer part of its production to other regions in order to be able to manufacture some of its products in other regions, and now it seems that the technology giant Based in Cupertino, it has increased its activities to reach the mentioned goal.
written by AppleInsiderApple has accelerated its plans to move part of its production outside of China. Apparently, the company has informed its suppliers to plan more proactively to assemble products in other Asian countries, particularly India and Vietnam.
Given the quarantines caused by the Chinese government’s policies regarding the resurgence of Covid-19, as well as the riots that have occurred at Foxconn’s troubled Zhengzhou factory, Apple now feels an even greater need to migrate. It is worth noting that the Zhengzhou facility is the largest assembler of Apple’s iPhone Pro models. Needless to say, the Cupertino giant has long felt the need to move suppliers out of China, but as the country’s position as a manufacturing center has weakened in recent years, which has also been affected by the US trade war, Apple has decided to move its suppliers. transfer to other parts of the world.
Migrating from China to other countries is very difficult to predict, and for example, transferring only 10% of Apple’s production capacity outside of China will take about eight years. Currently, the company’s production centers are expanding in Vietnam and India, but there are many more things that should be considered for such a big change.
One of the key elements in moving Apple’s supply chain out of China is new product introduction, a process in which Apple teams work with contractors to follow a full production schedule to build prototypes and product prototypes. This process is easy for Apple due to the dense concentration of suppliers and access to expert manufacturing engineers in China. The iPhone maker has to do a lot of work to do the same in other countries. However, some sources claim that with the decrease in hiring speed and the record in the global economy, Apple will face many challenges to transfer the said process to new countries.
Apple’s long-term goal is to manufacture 40-45 percent of its iPhones in India. At the same time, we expect Vietnam to be considered more as a supplier of other products of this company, including AirPods, Apple Watch and various MacBook models.