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Apple will expand production outside of China

India and Vietnam could become Apple’s production hubs when it informs suppliers about the expansion.

Logo outside the Apple Store in New York City, USA.  Photo: Reuters

Logo outside the Apple Store in New York City, USA. Image:Reuters

According to Wall Street Journal, Apple planned to reduce the concentration of most of its production lines in China. They have also informed their contract assembly partners about diversification. Vietnam and India are the countries on the shortlist for expansion.

Currently some Apple products are assembled in Vietnam and India, but most are still in China, where the main factories of Foxconn and Pegatron are located.

Apple has been considering the above plan for a long time, but the pandemic has slowed progress. However, the recent strict closures in China made them realize the need to diversify the production area. In addition, China is also in a trade war with the US.

Apple’s problem is that it’s hard to find a country that can compete with China in terms of its size and huge order requirements. Enough workers, enough quality with cheap prices in other countries is also a difficult problem. The transition to alternative manufacturing hubs like Vietnam and India will be slow. Apple is likely to move production lines for new products such as VR headsets out of China.

Foxconn now has a factory in India to assemble iPhones for this market only. In the future when the scale is expanded, iPhones made in India will be exported to sell globally.

Huy Duc

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