Apple is shifting its iPad production to Vietnam from China as per Nikkei Asia. This will be the first time ever that the iPhone maker will be doing this. Ever since the COVID-19 pandemic began, China has imposed one lockdown after another, the country has been facing mass factory closures which have caused disruptions in the supply chain for multiple OEMs.
Half of Apple’s primary suppliers are based in Shanghai:
Due to the restrictions imposed by COVID, there have been a lot of shortages and logistic delays which have led to the Apple iPad production being negatively impacted. The Cupertino giant is trying its level best to resolve these issues but China’s BYD, a leading maker of the iPad has assisted Apple to build production lines in Vietnam and can soon begin manufacturing tablets there.
Apple has also recommended multiple components suppliers stock up their inventories against future shortages and supply chain issues. The company has requested all of its suppliers to build component supplies for its entire product portfolio ranging from iPhones to iPads, and even MacBooks. This ensures continuity over the next few months.
Earlier reports had stated that Apple was considering making iPads outside China but due to a rise in COVID-19 cases in Vietnam, the process was delayed. The iPad will be the second major product to be made in Vietnam after the company’s AirPods. This indicates the importance of Apple’s continuous efforts at diversifying its supply chains as well as how integral Vietnam is to it.