According to Nikkei Asia, this tech giant is shifting more of its manufacturing to Vietnam due to several backlashes with the manufacturers in China. This is planned to take place in 2023 as this report states.
Source: VOX
Currently, Apple is still reliant heavily on Chinese factories. Foxconn is one of the most significant manufacturers with several factories in different cities in China. There are several apparent issues with the production in China right now. First, the US – China trade tensions are getting more and more intense. The US government wants their companies to be less centering on the Chinese workforce. Back then, this workforce was considered to be cheap and convenient.
Source: TCN
However, as the country is getting more wealthy thanks to Western companies’ China-based factories, this workforce is no longer inexpensive. Moreover, the Covid lockdowns also affect the supply chain and employee’s life. Previously, there have been several protests in Foxconn factories demanding wage raise and daily supply. Therefore, another choice is to move factories to its neighboring countries including Vietnam and India. Vietnam is now producing AirPods, MacBook, iPad and the production is going to expand in the future.
More MacBooks will be produced in this Southeast Asian country alongside Apple Watches and HomePods. Foxconn might begin producing these products in this country from May 2023.
Indian factories are now producing mostly iPhones and are in talks to build AirPods in the future. Similar to China, India also has a huge population that surpasses 1 billion. Soon enough, this country will be more populous than its neighboring country and will be the promising target of Western and US companies. Moreover, India – US relations are much closer than China – US relations. Seemingly, it will affect this shiftment positively.
Source: Daily Pakistan
Currently, Apple is producing around 20 to 24 million MacBooks every year. Therefore, the supply chain is one of the decisive factors of its manufacturing. 2022 has been a tough year for every tech company, especially in Silicon Valley. This downfall is mainly caused by the consequences of the pandemic in the last two years. Several people lost their jobs and found it hard to make ends meet. China is not only a major spot for Apple’s factories but also one of its largest markets. With the Covid outbreak and its No-Covid policies, the sale in this country has dropped like never before. This also impacts Apple’s profits and strategy greatly.
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