Apple will boost production in Vietnam, India-Hi-tech fashion

According to the latest report, Apple will focus on increasing iPhone production in Vietnam and India.

According to the Wall Street Journal, the US technology “giant” is planning to increase production output Iphone outside of China in other locations: India and Vietnam after the strong effects of the Covid-19 pandemic. The company has listed sites in these two Asian countries and talked with some of its contract manufacturers on the plan.

A store Apple Store.

Last month, Apple forecast that there would be bigger supply problems for the company as the Covid-19 situation forced it to suspend production in China. The report said, “Apple House” cited China’s strict anti-Covid policy and other reasons for its decision.

Just last month, Apple CEO Tim Cook said Covid’s manufacturing problems in China had eased but semiconductor shortages remained a significant issue. Supply disruptions are centered on one corridor in Shanghai, he said, but the pandemic is also affecting demand in China.

In the meantime, Apple’s moves are closely watched. Any decision by the company could affect other US manufacturers in the near future.

Reducing dependence on China

In 2021, factories in India only produce about 3.1% of iPhones for 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, this has to stop because partners do not want to invest heavily in a country that has many political conflicts with China. Therefore, the company has turned to other Southeast Asian countries, including Vietnam, now where many of its factories are located. Samsung.

Apple already has an iPhone factory in India.

At a meeting with Prime Minister Pham Minh Chinh on May 17 in the US, CEO Tim Cook said that Apple has a desire to expand the supply chain in Vietnam and cooperate with domestic enterprises. The leader also plans to increase the number of domestic suppliers and increase the rate of using domestic products in the near future.

Over the years, “Apple House” has always sought to reduce its dependence on the production chain in China. Now, when the Covid-19 epidemic situation has stabilized, the airline will promote this plan.

Currently, more than 90% of Apple devices such as iPhones, iPads and MacBooks are made in China. However, if the company relies too much on this country, the company can face many risks due to the conflict between the US and China.

Possessing a large market and a long-standing production ecosystem, China is still the leading country in the supply chain for technology companies. Therefore, shifting production focus to Vietnam or India will inevitably be difficult and time consuming.

At the same time, this plan will force the Cupertino-based company to invest large sums of money. Meanwhile, the global economy is facing many difficulties due to inflation, stock market has many strong fluctuations.