Apple has told some of its contract manufacturers that it wants to increase production outside China, the Wall Street Journal reported, citing people familiar with the matter. India and Vietnam, which are already sites of Apple production, are among the countries short-listed by the company as alternatives, the report added.

Apple last month forecast bigger supply problems as COVID-19 lockdowns slowed production and demand in China. [1]

Figure 1. Apple Reportedly Looking to Boost Production in India, Vietnam

Figure 1 shows the report said that Apple is citing China's strict anti-COVID policy and other reasons for its decision. Apple declined to comment to WSJ and couldn't be immediately reached by Reuters on Saturday. [2]

Earlier this month, Apple supplier Foxconn Was Predicted A tough quarter for the parts maker. Foxconn warned that current quarter revenue for its electronics business, including smartphones, could decline as growth slowed amid rising inflation and freezing demand in locked-down China, as well as supply chain issues.

The Taiwan firm, the world’s biggest contract electronics maker, is grappling with a severe shortage of chips like other global makers, which has hurt smartphone production, including its key customer Apple. [3]

While the company reiterated that COVID-19 controls in China only had a limited impact on its production as it kept workers on-site in a “closed loop” system, demand for its products in the country has suffered as people remain shut in. The slowdown has recently been exacerbated with a downturn in major markets due to high inflation and the war in Ukraine. [4]

References:

1. https://gadgets360.com/mobiles/news/apple-boost-production-india-vietnam-outside-china-3001276#pfrom=home-popular
2. https://newslogic.in/technology/apple-reportedly-looking-to-boost-production-in-india-vietnam/
3. https://news.bharattimes.co.in/apple-reportedly-looking-to-boost-production-in-india-vietnam/
4. https://deshinewsprime.com/apple-reportedly-looking-to-boost-production-in-india-vietnam-2/

Cite this article:

Thanusri swetha J (2022), Apple Reportedly Looking to Boost Production in India, Vietnam, AnaTechMaz, pp. 84