Apple is taking one step further to diversify its iPhone supply chain.
The Cupertino-based tech giant is reportedly considering shifting some of its iPad production away from China to other countries such as India to avoid supply chain issues.
Apple’s move to diversify its supply chain follows the disruption caused by China’s zero-COVID policy and the subsequent protests within the country.
Apple iPad Supply Chain Diversification Details
Two sources close to the Indian government revealed that Apple is in talks with Indian officials to explore options for bringing some of the tech giant’s iPad production into the country, per CNBC.
The sources said that concrete plans have yet to materialize from these talks, but should they be successful, the resulting plan would expand Apple’s footprint in India.
India isn’t the only option for Apple. As of the writing of this Apple, it is also considering expanding in Vietnam since it already has a sizeable production base there with its supply chain partners, per 9to5Mac.
You may remember that Apple was reportedly considering bringing some of its iPhone and iPad production to India and Vietnam in 2020 in an earlier effort to diversify its supply chain and be less reliant on the manufacturing power of China, per Nikkei.
These diversification moves follow recent events in China, where the country’s zero-COVID policy and subsequent civil unrest have negatively affected iPhone production.
These are not the only reasons Apple is looking to other countries to manufacture its products. According to The Verge, the trade wars between China and the US, as well as the rising labor costs in the country, are also factors that influenced Apple’s decision to diversify its supply chain.
Apple is also under scrutiny as it limited the availability of its AirDrop feature in China to no more than ten minutes. This limitation was made due to the protesters in China using it as a tool to share information critical of the Chinese government and the Chinese Communist Party.
Difficulties in Moving Production
However, Apple could expect some difficulties in moving some of its iPad production to India. The lack of individuals with experience in manufacturing devices as complex as Apple’s and the growing territorial disputes between China and India could prove to be an obstacle to the company’s plans.
Additionally, the manufacturing infrastructure and large cheap labor force that China offers are difficult to find elsewhere. This difficulty means that Apple will need to build up the necessary infrastructure and train people how to manufacture their devices to build its production power in India over time to meet its scale demands.
Despite that, some growth is to be expected in Apple’s production in India. According to Gene Munster at Loop Ventures, 35% of iPhones will be manufactured in India in 2027 from its meager 100% in 2022.
He also predicts that Vietnam, Malaysia, and its home base, the US, will help produce Apple devices within those five years.