Apple looks at India and Vietnam to bolster its supply chain in the wake of unrest in China
Intro: Apple looks at India and Vietnam to bolster its supply chain leading to China, losing its tag as the leading iPhone manufacturer. The South China Morning Post has reported that Foxconn, the largest Apple supplier has finalized plans to relocate some of its Apple iPad and MacBook production to Vietnam.
Amid COVID disruptions, Apple has reportedly cut back on orders citing weakening demand as a potential blow to its Chinese suppliers. Bloomberg’s analysis says that around 17.7 percent of Apple’s 2022 suppliers were aboded in China, making it the second largest global source of Apple’s supply chain after the US. India marks eighth and Vietnam marks fourteenth place, both with two companies. Apple is bolstering its manufacturing plans in India and Vietnam in the wake of unrest in China over zero COVID policy which has disrupted its supply chain. This has led to an acute shortage of iPhone 14 Pro models in 2022.
As per the Wall Street Journal’s report, Apple is telling its suppliers to plan more actively for assembling Apple products elsewhere in Asia, particularly in India and Vietnam, to reduce dependence on Taiwanese assemblers led by Foxconn. The company aims to ship 40-45 percent of iPhones from India and by 2025, it is being estimated that every fourth iPhone will be made in India. According to industry experts, Apple’s ‘Make in India’ iPhones will potentially account for close to 85 percent of its total iPhone production for the country in 2022. In 2017, Apple started manufacturing iPhones and advanced iPhones are being manufactured in the country like iPhone 11, iPhone 12, and iPhone 13 at the Foxconn facility. On the other hand, iPhone SE and iPhone 12 are being assembled at the Wistron factory in the country.