The Wall Street Journal claimed that Apple has notified its several contract manufacturers that it wants to expand production outside of China, citing people familiar with the situation.
As per the reports, the company has short-listed India and Vietnam as options.
Last month, the company predicted severe supply issues as China’s COVID-19 lockdowns delayed manufacturing and demand.
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According to the report, Apple’s decision is based on China’s tough anti-COVID regulation, among other factors. Moreover, the company deny to reply to the Wall Street Journal and cannot reach by Reuters on Saturday.
Apple To Boost Production Outside China
Apple supplier Foxconn projected a difficult quarter for the components maker earlier this month. Foxconn said that sales for its electronics sector, which includes smartphones, may fall in the current quarter. As, growth is slow due to growing prices and cooling demand in China’s economy, as well as escalating supply chain concerns.
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Like other worldwide manufacturers, the Taiwanese company, the world’s largest contract electronics manufacturer, has been dealing with a severe chip shortage. It hampers smartphone manufacturing, especially for its key client Apple.
While the company stated that COVID-19 regulations in China have a limited influence on production since workers were kept on-site in a “closed-loop” method, demand for its products in the nation has declined as people were not allowed to move out. The recession has lately been clubbed by a fall in key markets as a result of rising inflation and the Ukraine war.
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Anushka Saxena
A hardworking, dedicated and fun-loving person who always loves to explore new things, meet new people and try to make every journey worth remembering. Cheers!