According to Nikkei Asia, Apple is shifting some iPad production from China to Vietnam in response to supply difficulties caused by the COVID lockdown. The corporation is taking other steps with its suppliers to mitigate the impact of supply concerns in China.
This isn’t the first time Apple has attempted to shift some production out of China. Some iPhones are manufactured in India, a small number of Macs are built in the United States, and AirPods are already manufactured in Vietnam.
Apple had planned to expand its manufacturing operations in Vietnam in 2020 and 2021, but it had to postpone part of its plans because of COVID-19 outbreaks in the nation.
Vietnam is not invulnerable
Given that Vietnam may likewise be vulnerable to lockdowns and other interruptions, Apple does not believe transferring everything to Vietnam will solve its difficulties. It’s also improbable that most of its supply lines will be moved there.
On the other hand, Apple’s executives may seek to avoid the most severe disruptions by spreading across different locations.
The corporation is currently so reliant on particular locations in China that any interruptions there might impact its capacity to ship new iPhones each year. It appears that the product lineup for this autumn will be affected.
Apple is hoarding components
As a precaution, Apple’s suppliers have reportedly been advised to start hoarding particular components such as printed circuit boards and mechanical and electrical parts.
According to Nikkei, some suppliers may be concerned about the stocks since if consumer demand for electronics continues to plummet, suppliers may be left with components that aren’t needed. On the other hand, Apple is said to have contributed to the cost of moving supplies.
In Apple’s most recent quarterly financial report, the iPad was the only major product category that witnessed a revenue decline year over year.