From Made in China to Made in India: How is Apple reducing reliance on the Chinese supply chain? Source: AFP
- Apple buyers are facing longer wait times for the company’s flagship MacBook Pro laptops, especially due to the lockdown in China.
- The delays reflect Apple’s struggles to keep its Chinese supply chain running smoothly amid another Covid outbreak.
- At this point, the US giant’s second-largest Chinese assembly plant has suspended production at key factories in Shanghai and nearby Kunshan.
- As Apple has expanded its production capacity outside of China, it has also started producing the iPhone 13 in India.
Apple Inc’s dependence on China has long been a recurring concern. From the start of the trade wars between Washington and Beijing to when Apple’s suppliers in China adhered to a forced labor program and the most effective Covid-19-related supply restrictions ever. All this highlighted the urgency of Apple reconsidering its manufacturing base to India as its next best option.
When Apple first entered the bustling Indian manufacturing space in 2015, the company was aggressively expanding its market share while expanding its manufacturing capabilities in the country. Gradually, more Apple products were being brought together in India and under the ‘Make in India’ initiative. In short, the American tech giant is gradually developing its production capacities abroad. traditional base of china.
Not just India, but even Mexico and Vietnam are becoming increasingly important to contract manufacturers as Apple seeks to diversify production away from China. According to the latest update ReutersHas Apple started producing the iPhone 13 in India? second largest smartphone market in the world.
According to this Reuters’ According to sources, the phone is manufactured at a local factory. Apple’s Taiwanese contract manufacturer Foxconnis located in the town of Sriperumbudur in the southern state of Tamil Nadu. In context, the iPhone 13 is the fourth locally produced model after Apple launched its manufacturing operations in India. With iPhone SE in 2017, instead of just running the assembly line.
Foxconn, the manufacturer of Apple’s iPhones, previously announced It plans to build 10 to 12 facilities in India that will include factories and data centers. Although Foxconn has long established most of its operations in China, rising labor costs and deepening US-China tension Made him look elsewhere. With that in mind, India has deftly used the chance to lure major smartphone manufacturers with attractive subsidies.
Currently, all iPhones are made by three Taiwanese companies: Foxconn, Pegatron and Wistron. At this point, even Pegatron has ceased operations at its two subsidiaries in Shanghai and Kunshan, China, as global supply chains are in the grip of Beijing’s strict zero Covid measures.
However, Pegatron’s suspension marks the latest blow to Apple, which has experienced disruptions to other suppliers’ assembly lines in recent months as Chinese cities struggle to curb virus outbreaks. Foxconn has ceased operations at Shenzhen’s technology center until March. A recent report by Bloomberg He also noted that Apple’s latest high-end models have seen delivery estimates pushed to June as supply chain disruptions worsen again.
To recall, in August 2020 Foxconn and Pegatron were among the companies that were said to be monitoring new factories in Mexico to mitigate business risks. Meanwhile, Pegatron is reportedly considering an investment of US$ 1 billion in the USA. Production facilities in Vietnam.
At this point, China still remains an important manufacturing hub, despite numerous efforts by Apple and its partners to diversify their supply chains. The tech giant, which will announce its second-quarter earnings results on April 28, is expected to provide investors with a window into supply challenges.
from WordPress https://ift.tt/UrQCO1x
Comments
Post a Comment