Apple is planning to begin the production of its upcoming devices in India. They were first considering China, however, due to strict COVID-19 guidelines, reduced dependability, as well as tensions with the US government, Apple is planning to switch from China to India.
A detailed report on Apple’s future production plan
According to sources, Apple has decided to move out of China, due to Beijing’s uncompromising anti-coronavirus stance, which also includes many other serious factors. The tech giant has instructed its manufacturers to halt any production plans in China.
Instead, Apple has decided to pick India to produce their upcoming line of products like MacBooks, iPads, and iPhones. Some reports also state that they are even considering Vietnam for Apple devices production as the top choice as an alternative to China.
If the plan goes out well and the production begins in countries like India, then it might help the country with more employment opportunities and lower the cost of Apple products.
Reasons for Apple halting its production in China
As per the estimations, independent contractors manufacture more than 90% of Apple products like MacBook PCs, iPads, and iPhones in China. As we all know, Beijing is following the Communist regime. And it has led to conflict with the US government.
These are the reasons along with some other why Apple wants to move its production facilities from China. And it seems like the company has found its new suitable candidates.
The reason behind choosing India is that Apple sees India as the next China because of its low costs and large population, which ranks second after China.
Some sources say that Apple is serious about these negotiations. And now, the company is heavily prioritizing India and Vietnam. Moreover, they are directing contractors where they can find new manufacturing capacity.
Apart from that, there are international travel restrictions in China. So Apple was allowed to send only a handful of engineers and executives to the country to take the stock of their contractors’ production facilities. As the number of Apple executives and engineers was less in number, the company was unable to use these facilities as thoroughly as they could.
There are many other factors why Apple is moving out of China. Sources say that there were severe outages in parts of China’s main industrial estates. Furthermore, Shanghai’s anti-covid policies lead to supply chain issues as well. These things have globally tarnished China’s reputation all over the globe as an international company cannot be dependent on them.
What does Apple CEO Tim Cook has to say about this issue?
As we all know India and China have a large list of qualified workers in comparison with other Asian countries. Apple has been working with China for a long time because the country has guaranteed that Apple’s manufacturers have enough supplies, personnel, and land to assemble various Apple devices in their factories.
In April, Apple CEO Tim Cook said, “Our supply chain is truly global, and so the products are made everywhere.” he added, “We continue to look at optimizing.” And in the before COVID-19 era, that is in early 2020, the company was trying to take away its units from China. However, their plans to halt their production in China, and to begin their new production of Apple devices were hindered due to the pandemic.
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