#Coronavirus Effect? iPhone Makers Will Ditch China & Move To India; $1 Billion Investment Planned
Apple may soon be moving its manufacturing plants from China to India, and Coronavirus is the reason behind this decision of Apple. Wistron Corp., which is one of Apple’s manufacturing partners has previously announced that half of its company’s capacity will be residing outside of China.
Also, they have announced that this will happen within the next year.
Is coronavirus the only reason why Apple is moving its manufacturing plant outside of China? Find out right here!
Apple To Shift Its Manufacturing Plant Out Of China To India
The US is already in a trade war with China which already was one of the factors for Apple to consider moving its operations outside of China. The outbreak of the Coronavirus has only managed to stimulate this decision.
As per reports, the company is planning to move its operations to India, Vietnam, and Mexico as well and has set aside $1 billion for funding the expansion.
Chairman Simon Lin has stated, “We understand from a lot of messages from our customers that they believe this is something we have to do. They’re happy and appreciate that we can continue to make such a move and they will continue to work with us.”
Apple has already set up its manufacturing plants in India, in Bengaluru and Chennai. Some of the iphones that are being manufactured on a trial basis are iPhone X, iPhone XS, iPhone XS Max and iPhone XR.
Pegatron, Foxconn Also Moving Out Of China To Diversify Operations
In addition to that, iPhone assembler Pegatron is also looking to expand manufacturing plants. Pegatron has already launched manufacturing operations in Indonesia and will soon be launching another one in India as well. Chief Executive Officer Liao Syh-jang has revealed that the company is planning to commence manufacturing operations in Vietnam in 2021.
Hon Hui, popularly known as Foxconn, has identified that the world’s second largest economy has been impacted heavily by the Coronavirus outbreak. Alex Yang, the company’s investors relations chief said, “Trade, the virus, all these things will make the world very different in the next decade.”
Companies moving out their operations from China will have a huge effect on the economy of the country if not bottomed out completely. The fact remains that the suppliers, competent workers, efficient distribution systems and large home market that China offers is nowhere to be found in the world.