Apple reportedly wants to increase production in India, Vietnam

Apple has told some of its contract manufacturers that it wants to increase production outside of China, the Wall Street Journal reported, citing people familiar with the matter.

India and Vietnam, which are already sites of Apple manufacturing, are among the countries the company has shortlisted as alternatives, the report added.

Apple forecast major supply issues last month as COVID-19 lockdowns slowed production and demand in China.

The report said Apple cited China’s strict anti-COVID policy and other reasons for its decision.

Apple declined comment to WSJ and was not immediately available to Reuters on Saturday.

Earlier this month, Apple supplier Foxconn had predicted a tough quarter for the parts maker. Foxconn warned that its electronics business, including smartphones, revenue could decline in the current quarter as growth slows amid rising inflation and falling demand in lockdown China and escalating supply chain problems.

The Taiwanese company, the world’s largest contract electronics manufacturer, has been struggling with a serious shortage of chips like other global manufacturers, which has hampered smartphone production, including for its key customer Apple.

While the company reiterated that China’s COVID-19 controls have had a limited impact on its production as it kept local workers in a “closed-loop” system, demand for its products in the country has suffered since people remain trapped The slowdown has recently been exacerbated by a downturn in key markets due to high inflation and the war in Ukraine.

© Thomson Reuters 2022 Apple reportedly wants to increase production in India, Vietnam

Ryan Sederquist

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