As a first, Apple is moving some iPad production out of China to Vietnam to minimize any possible delays amid strict lockdowns in China that caused supply chain disruptions.
iPad production to be shifted from China to Vietnam to avoid supply chain disruptions
As reported by Nikkei Asia, the Cupertino tech giant is moving some iPad production away from China marking this as the “first time ever” Apple has done this.
Recent COVID-19 lockdowns hitting multiple sites in China have caused significant strain on Apple’s supply chain. One of the affected products is Apple’s iPad as there have been delays with its production. But, Apple is trying to ensure disruptions are kept to a minimum.
Apple assembly partner Foxconn at the beginning of this year invested $270 million to establish iPad and MacBook manufacturing plants in Vietnam. In addition, production of the Apple’s HomePod, AirPods, and iPhone is also taking place in the country.
In addition to moving production to Vietnam, Apple has plans to build iPad production lines in the country which will be operational soon, reports the publication.
In May, Prime Minister of Vietnam Pham Minh Chinh met with Apple CEO Tim Cook to discuss the expansion of the tech giant’s business in the country. The Prime Minister said that consumers of all ages are big fans of Apple products which is only expected to increase due to the “growth of the global digital economy.”
Apple has also asked some suppliers to build up their supply reservices of some components, particularly components made around China to prevent having to deal with supply shortages.
Specifically, the tech giant wants suppliers to stock up on printed circuit boards and some electronics parts for the upcoming iPhone 14 lineup.
Despite today’s report, one of Apple’s major iPhone assemblers, Foxconn, recently said that the COVID-19 lockdowns in China have not had a major impact on its operations and that it expected supply chain disruptions to ease by the second half of 2022. This is a good sign that production for the upcoming iPhone 14 lineup is on track for a September release.
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