Apple ramps up iPhone, iPad, Mac production shift out of China

Apple is ramping up the production of iPhones, iPads, Macs and other products outside of China, Nikkei Asia reports on Wednesday, in a sign that the Cupertino Colossus is continuing to accelerate its production diversification efforts.

Apple logoLauly Li and Cheng Ting-Fang for Nikkei Asia:

Sources said 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 — the company’s first 5G smartphones — there as soon as this quarter.

Apple is also increasing production capacity for smart speakers, earphones and computers in Southeast Asia as part of its ongoing diversification strategy, the sources added.

Apple has relocated some production of the Mac mini, one of its desktop computers, to Malaysia, another person familiar with the matter told Nikkei, and the company is also set to move a part of its MacBook production to Vietnam this year.

Apple’s moves are part of a larger trend of global tech giants reducing their production dependence on China, long known as the world’s factory. The country’s rising labor costs, the prolonged trade tensions between Washington and Beijing and the outbreak of the coronavirus pandemic that severely disrupted the supply chain have all driven home the risks of depending too heavily on one country. The U.S. government, moreover, has initiated a “supply chain restructuring” campaign and urged tech suppliers to move away from China, the Nikkei reported earlier.

MacDailyNews Take: Former U.S. President Richard Nixon, who opened relations with China in the early 1970’s, just before his death in 1994 remarked on China: We may have created a Frankenstein.

Apple cannot divest their dependence on China quickly enough (because they started years too late).

It’s smart for both Apple and Foxconn to diversify assembly outside of China. There’s no sense having all of your eggs in one basket.MacDailyNews, April 2, 2019

8 Comments

    1. Sure…., if it ain’t back in the USA ,but just moved along to another slave country nothing has been done, my problem with China is the jobs lost here and the spying….

      1. No, out of China while imperfect speaks volumes on many positive levels. Great to read the Cook apologists have been saying for two years it can’t be done are watching it unfold before their eyes…

        1. I don’t think any of us said it couldn’t be done. We just said that it couldn’t be done overnight. We said that Apple was moving out of China as fast as it reasonably could, and that was the best that could be expected of them. It was the Cook deniers who ignored all the evidence that the company was doing its best to disengage with all deliberate speed.

            1. I have also said from time to time that it was raining. I thought it went for granted that I meant it was raining right then. Tomorrow is another day. At the time I was writing, no other country in the world could immediately replace China as Apple’s primary parts supplier and assembler. But tomorrow is another day.

              I said, repeatedly, that Apple was trying to get out of China (which means I thought that was possible), but that building factories and recruiting a workforce to build a billion devices a year or thereabouts is not something that anyone—not even a company or country with Apple’s resources—could do overnight.

              What is going on currently supports what I said, not what you said, which is that Apple could cut all its ties to China with immediate effect without devastating the company.

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