Apple wants OEMs to expand production outside China: India and Vietnam are options – yqqlm

Beijing time on May 22, according to the Wall Street Journal, people familiar with the matter said that Apple has told some contract manufacturers that it hopes to expand production outside China. Apple declined to comment.

Apple is looking more closely at which countries could replace some of China’s production, with India and Vietnam being among the options, people familiar with the matter said. Currently, these two countries already account for a small proportion of Apple’s global production. Apple previously disclosed that supply chain constraints will result in a loss of $4 billion to $8 billion in revenue this quarter.

Analysts say more than 90 percent of Apple products such as iPhones, iPads and MacBook laptops are currently made in China by outside contract manufacturers.

Apple tried to reduce its reliance on China and diversify production before the coronavirus spread globally in early 2020, but those plans have been complicated by the outbreak. Now, Apple is trying again and telling contract manufacturers where they should build new production capacity.

An Apple spokesman declined to comment. When asked about Apple’s supply chain in April, Apple CEO Tim Cook said: “Our supply chain is truly global, so products are made all over the world. We will continue to optimization.”