Apple wants to be less dependent on China and is already looking at alternatives. According to reports, India and Vietnam are very popular. China’s zero-Covid policy and China’s handling of the Russian war in Ukraine are cited as reasons.
Report: Apple plans partial withdrawal from China
According to information from the Wall Street Journal Apple partially withdraw from China. Some suppliers are said to have already been told that production outside of China should be boosted. People involved in the talks explain that the ongoing Chinese zero-Covid policy is the main reason for the partial withdrawal.
Also the fact that China has so far refrained from asking Russia for to criticize his invasion of Ukraine, is said to have been mentioned by Apple as a reason. An Apple spokesman declined to comment on the report when asked. Apple CEO Tim Cook said in April 2022 that the company’s products are “made everywhere” but that they “continue to work on optimizing” supply chains.
As an alternative to China, Apple aims primarily India and Vietnam consider, it says (source: Wall Street Journal). Both countries are already responsible for a small part of global Apple production, which could be significantly expanded in the future. Even before the corona pandemic, Apple was considering reducing its dependence on China.
The iPhone 13 at a glance:
Apple’s withdrawal from China won’t be easy
Apple has built a dense network of suppliers, friendly local governments and a well-trained workforce in China. Added to this are the comparatively low wage costs, which, however, are undercut by Indian and Vietnamese employees. Of a complete withdrawal from China cannot be assumedeven though India was already responsible for 3.1 percent of all iPhones manufactured last year.