Apple has been planning a manufacturing expansion for a long time and its attempts to expand manufacturing outside of China appear to have advanced, with the company advising contract manufacturers that it wants to diversify output. This report was published by Wall Street Journal yesterday.
Although certain Apple goods are made in nations such as Vietnam and India, the great majority of Apple’s manufacturing takes place in Foxconn and Pegatron factories in China. Apple has been mulling geographic expansion plans for some time, according to the Journal, but the epidemic put a stop to any urgent adjustments. The recent round of tight lockdowns in Shanghai, on the other hand, has emphasized the need to diversify.
Apple is mostly worried about the ongoing trade disputes between China and U.S
China poses a geopolitical concern. Its ongoing trade disputes with the United States are also a worry. Only China is large enough to meet Apple’s massive order requirements, making it difficult for any other country to compete.
It’s tough to get low-cost, qualified workers elsewhere. The shift to other industrial centres such as India or Vietnam will be gradual and slow. This suggests that Apple’s new product supply chain (such as the AR headset) will most likely be situated outside of China.
Apple’s manufacturing partners, such as Foxconn, have already developed facilities in India to assist with the production of iPhones for the Indian market. iPhones would be manufactured in India and then sold to other countries for sale.