Apple Rejects China, Chooses India For Manufacturing iPhones, iPads, MacBook & More (Find Out Why?)
With a rise in the number of Covid-19 cases across China, the country is practicing a strong anti-coronavirus stance to keep another wave of the pandemic from hitting the country economically.
According to sources privy to the matter, the US tech giant Apple is known to be looking to move its production outside China, and is considering India and Vietnam as viable options for this shift.
Here’s everything you need to know about the development.
Apple to Move Production Units Outside of China
In order to tame the rising Covid-19 cases in China, the country has shut down production units and activities across some of the world’s top production hubs like Shanghai, and is following anti-Covid policies there.
Lockdowns in other locations too have led to supply-chain disruptions, adding to the ongoing difficulties in the same to several Western companies.
Further, Beijing’s repressive Communist regime and its conflicts with the US are other reasons for the US tech giant to look for options to move its production units out of China.
As a result, Apple is considering shifting its hubs to India and Vietnam, as these countries at present contribute to a minor amount of Apple’s global production.
Estimates suggest that over 90% of Apple products like iPhones, iPads, and MacBooks are manufactured by independent contractors in China.
Thanks to India’s pool of qualified workers, exceeding the count compared to most Asian countries, besides cheap labour and low costs, Apple is considering its manufacturing plans to shift to India, cite most sources.
“Our supply chain is truly global, and so the products are made everywhere. We continue to look at optimising,” stated Apple CEO Tim Cook in April.
Ahead of the Covid-19 pandemic hit, Apple was trying to diversify outside of China but the pandemic hit the plans and hindered the company’s ambitions.
Apple is again trying to direct its contractors outside of China, and looking out for areas facilitating new manufacturing capacities.