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Apple will transfer from 15 to 30% of production from China to Southeast Asia

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Apparently, the company decided to "hedge" and reduce dependence on Chinese factories.

Apple asked several major contractors to assess the impact of moving 15-30% of their production from China to Southeast Asia. The company noted that they are preparing for a "fundamental restructuring of supplies". This was reported by the publication Nikkei Asian, citing several sources familiar with the situation.

Among the contractors that Apple asked to consider the transfer of production, all major partners of the company — Foxconn, Pegatron, Wistron, Quanta Computer (produces MacBook), Compal Electronics (produces iPad), Inventec (produces AirPods), Luxshare-ICT and Goertek. Many other Apple suppliers are also tracking which country they will move to.

Among the countries considered Mexico, India, Vietnam, Indonesia and Malaysia. According to the interlocutors of the publication, the main favorites are India and Vietnam, and the company Wistron has already begun to produce part of the iPhones in India.

Sources said that as part of these efforts, Apple has created a "team to study capital expenditures", which is negotiating with contractors and governments. In the material Nikkei notes that the reason for the transfer of production was the trade war between the US and China, but Apple decided that so much to rely on Chinese factories was too risky and the risks grow, even if the conflict is resolved.

"- Declining fertility, higher labour costs and the risk of over-centralization of production in one country. These adverse factors will not go away. Regardless of the final round of $ 300 billion [sanctions], Apple will follow the trend of diversification of production to be more flexible.

one of the leaders of Apple"

As of 2019, Apple's main suppliers are located in China and Taiwan. As noted by the sources, production in the new countries can be started not earlier than in a year and a half.

On June 12, Foxconn announced that it would be able to collect all iPhones for the us market outside of China. The company noted that Apple has not yet made such a request, but the manufacturer is ready for it. Apple will probably start collecting iPhones outside of China if the US raises tariffs on smartphone imports.

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