Apple wants to increase production in Vietnam or India?

The impact of the pandemic, tensions between the US and Chinese governments are one of the reasons for this change. According to some unnamed sources, India and Vietnam are on the list of potential locations to increase production.

According to a Reuters report in April 2022, the prolonged lockdown in China could cause a shortage of millions of iPhones.

An Apple store in Beijing, China in 2012. Photo: Feng Li/Getty Images

The WSJ notes that more than 90% of Apple products are made in China, but tensions between the two governments could lead to instability in the supply chain. As a result, the company is planning to move production to other countries.

However, China remains an attractive place to manufacture equipment because of its solid ecosystem, skilled workers and low cost, as well as the potential domestic market. Statistics show that about a fifth of Apple’s global sales come from China.

According to the WSJ, Apple considers India the next best location because of its low cost and large population. However, it may be difficult for Chinese manufacturers to set up new factories in India due to strained relations between the governments of the two countries, which makes Vietnam and other Southeast Asian countries a attractive location.

As always, Apple has not commented on the matter.

(According to the Digital Age)