Apple is moving production of its iPad out of China and into Vietnam according to the latest reports, with the pandemic lockdowns being blamed for the shift.
The company has also reportedly asked multiple component suppliers to build up their inventories, just in case more shortages or supply issues happen. Apple has built production lines in Vietnam and "could soon start to produce a small number of the iconic tablets there", with the help of China's BYD -- so China... is helping Apple make the facilities to build iPads in Vietnam -- cool.
Apple is already making their AirPods in Vietnam. But the iPad has many more components and complicated parts than the AirPods, so it won't be a case of Vietnam making tens of millions of iPads per year starting this year, but more so a case of Apple shifting reliance to Vietnam from China starting now.
Nikkei reports: "For the first time ever Apple is moving some iPad production out of China and shifting it to Vietnam after strict COVID lockdowns in and around Shanghai led to months of supply chain disruptions, Nikkei Asia has learned. The U.S. company has also asked multiple component suppliers to build up their inventories to guard against future shortages and supply snags".
One of the people with direct knowledge of the matter said: "For example, component supplier X has a 40% share of Apple's business in Jiangsu Province, which is a risky region of supply chain disruption, and supplier Y in another city accounts for the remaining 60% share. Apple would want supplier Y to build enough additional components to match supplier X's 40% share in the coming months in case production in Jiangsu is shut down again".
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