Moving iPad production out of China, Vietnam is the destination Apple chooses

According to a Nikkei report, Apple may begin mass production of iPads in Vietnam in the middle of this year, marking the first time that a “significant amount” of its tablet has been produced outside of China.

Along with shifting iPad production, Apple is also reportedly increasing iPhone production in India, where it has started making several iPhone 11 lines here since last year. The report states that production of some iPhone 12 versions in the country will start from the beginning of this quarter.

The moves point to Apple’s efforts to diversify production locations outside of China, despite hopes that US-China trade tensions could be eased under Biden. The Nikkei report said that Mr. Biden will not immediately loosen tariff measures on Chinese goods. In addition, other factors such as rising labor costs in China have also prompted companies like Apple to look for other production locations.

Besides the iPad and iPhone, the Nikkei report also said that Apple is strengthening a number of other devices outside of China. Following the launch of AirPods Pro production in Vietnam last year, Nikkei reports that the company is planning to expand production of the HomePod smart speaker line along with some MacBook versions in this country. Some Mac Mini production will be shipped to Malaysia.

Two years ago, news emerged that Apple’s supply chain was planning to move from 15% to 30% out of China. Now, reports are showing that the shift could be much higher than in previous news.

Refer to The Verge