Apple is working on manufacturing more of its products out of China. The company has largely relied on China for most of the products’ manufacturing. However, the coronavirus pandemic and the US-China trade battle, has forced tech companies to look for other options.
A fresh report by Nikkei Asia states that Apple has begun ramping up manufacturing of various products in countries other than China. The Cupertino based tech giant (Apple) is reportedly moving major production to India, Vietnam, Malaysia, and other Southeast Asian countries.
Diversification of the supply chain
The covid-19 pandemic affected supply chains slightly but since then, major companies have begun diversifying the manufacturing of the products. The process will result in companies relying less on just one country.
Nikkei reports that Apple is set to begin manufacturing the iPad in Vietnam sometime in the middle of this year. It is unclear which model of the iPad will be built at the upcoming Vietnam plant. An interesting fact to note is that Apple is the biggest tablet maker in the world.
On the other hand, for the iPhone, Apple is reportedly working on ramping up the production at its plants in India. The company first began assembling the iPhone SE (2016) and the iPhone 7. Since then, the company has added the iPhone XR, iPhone SE (2020), and the iPhone 11 to the “assembled in India” products. Apple is reportedly planning to add the iPhone 12 series to the list soon – the first 5G phones from the company.
The iPhone 12 series has been priced extravagantly in India – much higher than the price tag of other countries. However, it’s unclear whether Apple will export the iPhones assembled in India to other countries or will only cater to the local demand. By assembling some iPhone models in India, the company has been able to avoid the import duty fee on those models.