According to Wall Street Journal, Apple has told its suppliers to increase production outside China. The discussion is centered around the recent lockdown restriction imposed in China at the breakout of the 2022 COVID-19 wave in March.
After the relations between the U.S. and China were stifled during former President Donal Trump’s tenure and higher trade tariffs were imposed on China, Apple had begun to reduce its reliance on the country. The tech giant’s suppliers established manufacturing units in Vietnam, Malaysia, and India to assemble iPhone, iPad, Mac, AirPods, and other devices.
The new COVID-19 lockdown and health restrictions, effective from March 2022, have crippled production in multiple manufacturing hubs in the major Chinese cities of Shanghai, Shenzhen, Kunshan, and Zhengzhou.
Apple suppliers to boost production in India and Southeast Asian plants
Recently, it was reported that Apple’s MacBook Pro assembling partner, Quanta Computer has decided to relocate the production of the MacBook Pro from its plant in Shanghai to Chongqing to increase volume.
The new report claims that the tech giant wants some of its suppliers to increase production outside China and manufacture more in India and Southeast Asia (Vietnam and Malaysia).
The company has allegedly told some suppliers it wants to increase production outside of China, reports sources of the Wall Street Journal. People involved in the discussions said Beijing’s strict policies over COVID-19 were high up on a list of reasons for looking elsewhere.
Aside from lockdowns, this includes strict travel restrictions that affected Apple’s ability to send engineers to its suppliers, forcing it into alternative working practices.
The tech giant is expected to launch the next-generation Apple Silicon MacBook Air, entry-level MacBook Pro, iPad, iPhone 14 series, Apple Watch Series 8, AirPods Pro 2, AirPod Max, and other devices this year. If production challenges continue, the company might delay the launch time of upcoming devices.
via Apple Insider