Apple explores moving 15-30% of production capacity from China: Nikkei

Apple CEO Tim Cook participates in an American Workforce Policy Advisory Board meeting with U.S. President Donald Trump and others in the White House in Washington, March 6, 2019.

Leah Millis | Reuters

Apple has asked its major suppliers to assess the cost implications of moving 15% to 30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, according to a Nikkei Asian Review report on Wednesday.

Apple’s request was a result of the extended Sino-U.S. trade dispute, but a trade resolution will not lead to a change in the company’s decision, Nikkei said, citing multiple sources.

The iPhone maker has decided the risks of depending heavily on manufacturing in China are too great and even rising, it said.

Key iPhone assemblers Foxconn, Pegatron, Wistron, major MacBook maker Quanta Computer, iPad maker Compal Electronics, and AirPods makers Inventec, Luxshare-ICT, and Goertek have been asked to evaluate options outside of China, Nikkei reported.

The countries being considered include Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam are among the favorites for smartphones, Nikkei said, citing sources who did not…

https://www.cnbc.com/2019/06/19/apple-explores-moving-15-30percent-of-production-capacity-from-china-nikkei.html

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