Apple is continuing to ramp up its manufacturing diversification by shifting a greater portion of iPhone, iPad, and Mac production from China to India and Vietnam, according to a new report by Nikkei Asia, on Wednesday.
Moreover, Apple is increasing production capacity for smart speakers, earphones and computers in Southeast Asia as part of its ongoing diversification strategy.
According to the report, iPad production will begin in Vietnam as early as the middle of this year, marking the first time that the world’s biggest tablet maker will build a significant number of the devices outside of China. The California tech giant is also stepping up iPhone production in India, its second-largest production base for the iconic device, sources added, with plans to start producing the latest iPhone 12 series.
Apple has relocated some production of the Mac mini, one of its desktop computers, to Malaysia. As well as, the company is also set to move a part of its MacBook production to Vietnam this year. Most of its computer production remains in China.
The firm suppliers have been working to meet their client’s desire for more diverse production bases. Key supplier Foxconn, formally traded as Hon Hai Precision Industry, injected $270 million to set up a subsidiary in Vietnam late last year as part of the Taiwanese company’s efforts to expand its production capacity in the country.
Noteworthy, the U.S. government has initiated a supply chain restructuring campaign and urged tech suppliers to move away from China, the Nikkei reported, previously.