Apple is reportedly shifting some of its iPad production from China to Vietnam. The shift would mark an important move for Apple, as the overwhelming majority of the iPad’s supply chain is based in China.
Nikkei Asia reports Apple has been interested in making such a move since January 2021, but the move has been delayed, due to supply chain issues. Now, the supply chain disruption caused by COVID lockdowns in China is believed to have increased Apple’s desire to move some production out of the country.
China’s BYD is reportedly aiding Apple in readying the new Vietnamese iPad production lines. BYD is one of the leading iPad assembly partners. The iPad will become Apple’s second major product line to be manufactured in Vietnam, following AirPods.
Apple is also said to be asking many of its suppliers to build up component inventories for all of its devices, in a move to help ensure there won’t be any future shortages. Some sources even say that Apple has shouldered some logistical and transportation costs for suppliers.
Apple hopes that its suppliers are able to manufacture enough additional components in the coming months to fully offset the setbacks in China. However, suppliers are concerned that slowing demand could stick them with large stocks of unused components.
(Via MacRumors)