The technology company has just announced to a partner that it will boost production in Asian countries to reduce dependence on the supply chain in China.
According to the Wall Street Journal, Apple informed its partners that it will increase the production of its product lines outside of China. Vietnam and India are two countries targeted by the technology company to build new facilities, including iPhone.
In the meantime, Apple’s moves are closely watched. The Wall Street Journal said any decision by Apple could affect other US manufacturers in the near future.
In 2021, factories in India will produce about 3.1% of iPhones supplied to Apple. That number could increase to 6-7% this year. The rest is made in China.
Originally, Apple intended to make India the “second China”. However, the company must reconsider because partners do not want to invest heavily in a country that is having many political conflicts with China.
Therefore, the company has turned to other Southeast Asian countries, including Vietnam, which is one of Samsung’s main manufacturing centers.
When meeting Prime Minister Pham Minh Chinh in the US on May 17, CEO Tim Cook said that Apple has a desire to expand the supply chain in Vietnam and cooperate with domestic enterprises.
At the same time, he also plans to increase the number of domestic suppliers and increase the rate of using domestic products in the near future.
In April, when asked about the supply chain situation, CEO Tim Cook once affirmed that their supply chain and products are now globalized. “We’re looking to optimize the resources we have,” he added.
Apple has for many years tried to avoid depending on the production chain in China, but faced many difficulties due to the Covid-19 pandemic. Now, when the situation has stabilized, the company has stepped up this plan and looked for other territories to diversify production facilities.
Currently, more than 90% of Apple devices such as iPhones, iPads and MacBooks are made in China. However, if it depends too much on this country, Apple can face many risks due to the conflict between the US and China.
On the other hand, due to China’s entry restriction policy, the leaders and engineers of this technology group cannot regularly visit the factory, making it difficult to track the work progress. Energy shortages and widespread power outages also significantly affect production in the world’s most populous country.
@ Zing News