Australia  

Celebrating 10 Years of Trusted News Discovery
One News Page
> >

Apple Reportedly Considering Moving Up to 30% of Production Out of China to Diversify Supply Chain

MacRumours.com Wednesday, 19 June 2019
With the U.S.-China trade war seemingly showing no signs of slowing down, a new report claims that Apple is getting serious about diversifying its supply chain in an effort to reduce its reliance on Chinese manufacturing.
iPhone disassembly robot Daisy

Specifically, Apple has asked several of its major suppliers to evaluate the cost implications of shifting 15 to 30 percent of their production capacity from China to Southeast Asia countries as it prepares for a "fundamental restructuring of its supply chain," according to the Nikkei Asian Review.

Key iPhone assemblers Foxconn, Pegatron, Wistron, major MacBook maker Quanta Computer, iPad maker, Compal Electronics, and AirPods makers Inventec, Luxshare-ICT and Goertek all have been asked to evaluate options outside of China, multiple sources say. Many other Apple suppliers such as print circuit board and casing providers are closely monitoring where these major assemblers would shift their production.

The countries being considered for diversification include Mexico, India, Vietnam, Indonesia, and Malaysia, with India and Vietnam among the favorites for iPhone assembly, according to the report. Apple supplier Wistron already assembles a limited quantity of iPhones in India.

As part of the efforts, Apple reportedly has a so-called "capital expense studies team" tasked with negotiating with suppliers and governments.

While these plans are said to have been triggered by the trade war, the report claims that Apple has decided the risks of relying so heavily on manufacturing in China are "too great and even rising" even if the trade war is eventually resolved.

"A lower birthrate, higher labor costs and the risk of overly centralizing its production in one country. These adverse factors are not going anywhere," said one executive with knowledge of the situation. "With or without the final round of the $300 billion tariff, Apple is following the big trend [to diversify production]," giving itself more flexibility, the person added.

Apple currently relies on Chinese and Taiwanese companies for the vast majority of its manufacturing needs, so diversifying its supply chain would obviously take time. The report cites a source who believes it would take at least 18 months for production to begin in new locations.Tags: China, Foxconn

This article, "Apple Reportedly Considering Moving Up to 30% of Production Out of China to Diversify Supply Chain" first appeared on MacRumors.com

Discuss this article in our forums
0
shares
ShareTweetSavePostSend
 
Credit: Wochit Business - Published < > Embed
News video: Apple Wants To Move iPhone Production Away From China

Apple Wants To Move iPhone Production Away From China 00:35

According to Business Insider, Apple is seriously considering moving a huge chunk of its manufacturing away from China. Anonymous sources told Nikkei Asian Review that Apple asked its biggest suppliers to calculate what it would cost to move between 15% to 30% of its production away from China. Apple...

Recent related videos from verified sources

When Newt Gingrich Thinks We'll Get a Trade Deal [Video]When Newt Gingrich Thinks We'll Get a Trade Deal

Following the news that China's economic growth was slowing, what should U.S. investors be thinking when it comes to the U.S.-China trade war? Newt Gingrich, a former Speaker of the House, sat down..

Credit: The Street     Duration: 01:51Published

Here's What to Know on Fed's Powell's Two Days With Congress [Video]Here's What to Know on Fed's Powell's Two Days With Congress

Jerome Powell, chairman of the Federal Reserve can breath a sigh of relief now that he's finished answered pressing questions from Congress. But the market can breath, too, because it looks like it..

Credit: The Street     Duration: 01:43Published

Apple may move production of Mac Pro from US to China [Video]Apple may move production of Mac Pro from US to China

Apple may move production of Mac Pro from US to China

Credit: Euronews English     Duration: 00:30Published

Nike Earnings: What Really Matters For the Stock Ahead of G20 [Video]Nike Earnings: What Really Matters For the Stock Ahead of G20

Nike's earnings report disappointed the market, but it shouldn't have, according to the company's top Wall Street analysts. The real takeaways on the stock are more nuanced then the headline numbers...

Credit: The Street     Duration: 02:59Published

You Might Like


Other recent news in Computer Industry

The 50TH ANNIVERSARY of Apollo 11: There and Back AgainIsraeli Security Firm Claims Spyware Tool Can Harvest ICLOUD DATA in Targeted iPhone Attack
Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.