Some of Apple’s contract manufacturers have heard that the company is considering expanding its operations outside of China because of Beijing’s “strong anti-COVID policy,” as reported by the Wall Street Journal.
According to the article, which cites people familiar with the matter, India and Vietnam, both of which already host a small amount of Apple’s global production, are among the nations that are getting a closer look from the business as potential alternatives to China.
Apple warned in a second-quarter conference call last month that supply chain constraints driven mostly by China’s COVID lockdown rules might cost the business $8 billion in sales revenue, according to a Forbes report.
There is no doubt that the supply chain for Apple products is genuinely global. CEO Tim Cook made the statement in April.
According to a report by Bloomberg, the reality is that Apple is extremely dependent on the country for production, and this relationship has produced issues for the firm as well as investors and customers throughout the pandemic.
The percentage of iPhones made in India is expected to rise to 6% from 3.1% this year, according to research firm Counterpoint.
Apple said in April that it had begun manufacturing the iPhone 13 in India. “We are thrilled to begin manufacturing the iPhone 13 in India, which features a beautiful design, improved camera systems for great images or videos, and the exceptional performance of the A15 Bionic chip, for our local customers,” Apple stated in an official statement.
India is home to the production of the iPhone 13 at a Foxconn factory in Chennai.