Apple is looking to reduce its dependence on China and has apparently told its suppliers that it is more actively planning to exit China.
The re-emergence of the coronavirus and labor protests have caused Apple to face many problems in the production of iPhones in China. In the same vein, the Cupertino’s seem to have told their suppliers that they want to increase production in India and Vietnam.
China is the main center of Apple production in the world, but in recent years, many problems have been faced by this company; From the spread of the coronavirus and strict quarantines to the trade war between China and the United States. In this regard, Apple wants to reduce its dependence on China and move some production lines to other countries.
Apple wants to migrate faster from China
According to the Wall Street Journal, Apple has accelerated its plans to exit some of its product lines from China. Cupertino has apparently told their suppliers that they plan more actively to produce their products in other Asian markets, particularly Vietnam and India.
It seems that Apple wants to reduce its dependence on China and rely less on Foxconn subsidiaries to produce its products. The reason for this issue can be found in the mass protests of Foxconn workers in the Zhengzhou factory. The same labor protests are likely to reduce the production of iPhone 14 Pro models by 6 million units, and of course, could cause a 20 million drop in sales of these products during the holiday season.
Despite all these statements, Apple has a hard time getting its production lines out of China. According to a report published some time ago, it will take 8 years for Apple to move only 10% of its production lines out of China. Although some Apple products are currently manufactured in Vietnam and India, much more work is needed to move production lines and make them a hub for more devices.
One of the things that Apple has to deal with is the low growth of the global economy and the economic problems of different countries. Therefore, Apple cannot easily hire new employees in different countries, and it will be difficult for Cupertinos to form efficient teams like those in China.