Apple prioritizes choosing Vietnam as a place to produce iPhone and MacBook

According to The Wall Street Journalmore than 90% of Apple products such as Iphone, iPads and MacBooks are made in China by outside contractors. However, the fact that Apple is facing potential difficulties in production due to policy China’s Zero-Covid forced the company to negotiate with several contract manufacturers to find alternatives.

Vietnam is becoming a top candidate when Apple wants to promote production outside of China Reuters

Sheet Nikkei Asia The outages in Shanghai and Kunshan have forced Apple to halt production at three suppliers, which could have a much more significant impact, especially as Pegatron has to be shut down. Pegatron, which makes about 20 to 30 percent of all iPhones, said in April that operations at its two manufacturing facilities in Shanghai and Kunshan had been suspended to comply with government regulations. Chinese government.

Similarly, MacBook maker, Quanta, and iPad assembler, Compal, have also had to close down to comply with Zero-Covid guidelines. Furthermore, the blockade at Shanghai reduced Apple’s revenue in the second quarter of 2022, when the company lost as much as $8 billion. Apple CEO Tim Cook “We have estimated losses to be in the $4-8 billion range, largely centered around the lockdown in Shanghai,” said in an earnings report.

Apple’s Chief Financial Officer Luca Maestri adds disruptions related to Covid-19 are also having some impact on customer demand in China. By far, Apple’s largest supplier, Foxconn, continues to produce at its largest iPhone assembly plant in Zhengzhou, China.