A supply chain report from Asia claims that Apple is moving some of its iPad production from China to Vietnam. This is the first time the iPhone maker has taken such steps. The report attributes the decision to China’s supply chain disruptions and lockdown measures.
Presently, the lion’s share of Apple’s supply chain for iPad production is based in China. In January 2021, reports began trickling in suggesting the company plans to move production to Vietnam. However, supply chain issues over the last year delayed the transition.
Moreover, the lockdown-induced disruptions in the China-based supply chain seem to have accelerated Apple’s want to shift production to another country. Nikkei Asia reports that Chinese iPad assembler BYD is playing a significant role in helping the Cupertino giant set up shop in Vietnam. The iPad won’t be the first product to be produced out of Vietnam, though. AirPods manufactured in the country are shipped around the world.
The report says Apple hopes its suppliers will be able to manufacture and stock up on iPad parts in the coming months to offset the effects of restrictions in China. The company has also instructed suppliers to increase their inventories to ensure shortages don’t impact production adversely in the future. Analysts believe this is one of the reasons why supply chain disruptions have a “controllable” impact on Big Tech firms like Apple while carmakers and smaller Android OEMs bear the brunt.
Apple has reportedly acted fast to secure the supply of chips for the upcoming iPhone models as well. The company is believed to have borne logistics-related expenses for suppliers to ensure production supplies arrive on time. Only time will tell how these measures and decisions will benefit Apple in the years to come.[Via Nikkei Asia]