According to the latest reports, Apple is moving iPad production from China to Vietnam, but this is not due to the fact that the Cupertino giant suddenly became concerned about human rights violations in the Middle Kingdom, because the change was dictated by the epidemic. The embargo is delaying production in China.
The company has also reportedly asked several component suppliers to increase their stock if major shortages or delivery problems arise. Apple has built production lines in Vietnam and “may soon start making a small number of popular tablets there” with the help of Chinese company BYD. Therefore, China is already helping Apple build iPad construction facilities in Vietnam.
The company has also reportedly asked several component suppliers to increase their stock if major shortages or delivery problems arise.
It is worth noting that Apple already produces AirPods in Vietnam. But the iPad has many more complex components and parts than headphones, so there’s no way Vietnam will be able to produce tens of millions of iPads annually starting this year, but Apple is trying to diversify its suppliers by making them more independent of China, which it faced in Recent years have had trouble fulfilling their contracts, which was clearly due to the many lockdowns in the country in connection with the Covid-19 pandemic.
Nikkei reports: “For the first time ever, Apple has shifted some iPad production out of China, and has moved to Vietnam after the tightened virus blockade in and around Shanghai led to months of supply chain disruptions. The US company has also asked several component suppliers to increase their stockpile for protection. of future shortages and supply problems.”
A person with direct knowledge of the matter said: “For example, component supplier X owns 40% of Apple’s business in Jiangsu province, which is a high-risk supply chain disruption area, and supplier Y in another city is responsible for the remaining 60% stake. Apple would like to Supplier Y is building enough additional components to secure a 40% stake in Supplier X in the coming months should Jiangsu production stop again.”
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