Apple Reportedly Moving iPad Production out of China Due to Supply Chain Disruption
With Apple’s supply chain facing continuous disruptions due to COVID-19 lockdowns, the company is reportedly making a decision to move some of its iPad production out of China. According to the latest info, it would be the first time that the technology giant is being forced to look for alternatives to mass produce its tablet range.
Apple Expected to Choose Vietnam as the Alternate Location for iPad Production
The move to Vietnam should help Apple resume some of its iPad operations, according to a report published by Nikkei.
For the first time ever Apple is moving some iPad production out of China and shifting it to Vietnam after strict COVID lockdowns in and around Shanghai led to months of supply chain disruptions, Nikkei Asia has learned.
Apple’s list of iPad assemblers was not named in the report, but we have to guess that one of them would be Foxconn. Apparently, these firms have teamed up with its iPad partner to set up production lines in Vietnam to initially start producing some tablets in the country. Though Apple considered Vietnam as a long-term plan to set up production lines, that plan was delayed due to the COVID-19 pandemic.
It will take the company and its assembly partners a few years to match the same iPad production output in China. For the time being, Apple has asked suppliers to begin stockpiling inventories to protect against future shortages. With its biggest revenue generator expected to launch in a few months, which is the iPhone 14 series, Apple has also asked suppliers not affected by continuous lockdowns to accumulate supplies of components to better prepare themselves for the release of the upcoming four models.
We expect that with a few Apple Silicon MacBook models in the works too, stockpiling supplies of this product range is also included. Apart from the tablet family, the second primary production line to be set up in Vietnam will be dedicated to AirPods. Since the production of various products is not completed disrupted in China, Apple does not have its hands and legs entirely tied, at least for now.
Unfortunately, the clock is ticking, and with several high-end launches expected this year, Apple will likely be moving with haste to cover its losses.
News Source: Nikkei
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