Apple is considering moving its production capacity from China to Southeast Asia, Nikkei Asian Review reported. Company representatives are discussing with suppliers how much of the capacity can be moved outside of China due to the uncertainty caused by the tensions between Washington and Beijing.
Cupertino is looking to move between 15% and 30% of all production, “with or without the final round of $300 billion tariffs”.
China has been the main base for Apple’s global success, but one executive was quoted saying that “lower birthrate, higher labor costs and the risk of overly centralizing its production in one country” made Apple consider diversification.
Assemblers like Foxconn, Pegatron and Wistron, major MacBook, iPad, AirPods makers, and print circuit board providers have been consulted over the possible production relocation. The countries being considered are Mexico, Indonesia, Malaysia, India, and Vietnam, with the last two being the favorites. Wistron already has a plant for older iPhones in India, but still, more than 90% of Apple products are manufactured in China.
Switching to another country would take up to three years, but it's not painless in any way. Sources claim that one supplier had spent three to five months assessing one location, just to find out later that there are risks of power outages. This wouldn’t happen in China since the state government already invested heavily in infrastructure, water, utilities, and even dormitories for workers, making it even harder for Apple to leave.
Oh good news for Vietnam and India...yeah!!
Hmm, true. Still though, if they were a big security threat, why not ban only the telecommunication?