Apple production – wants to better diversify its supply chain to become less dependent on China. Corona measures and protests recently got in the way of production there.
That reports the American newspaperThe Wall Street Journal on Saturday on the basis of insiders. According to the newspaper, work is accelerating on a plan to reduce dependence on China. To achieve that, Apple would, among other things, think about (partly) moving production to countries such as India and Vietnam.
The plan is mainly intended to reduce dependence on assembly company Foxconn. The Foxconn factory in China produces the vast majority of the iPhone 14 Pro and Pro Max devices, Apple’s most popular phones. Due to recent problems in the factory, the company could make up to 6 million fewer iPhones.
The Zhengzhou campus, where most of Foxconn’s production takes place, has been plagued by closures and worker unrest for weeks. Thousands of staff members fled in October after chronic food shortages. They were replaced by new employees. They, in turn, rebelled against Foxconn’s violation of wage agreements and because of quarantine measures.
The major supplier of the American Apple is now offering bonuses to attract new staff to keep the largest iPhone factory in the world running.
Planning doesn’t happen overnight
Apple feels less and less comfortable, according to the internal sources that T he Wall Street Journal spoke to, now that a large part of its activities is still concentrated in one place. In addition to a move to other countries, the company could also work with several Chinese partners. The only question is whether other partners will also be able to produce hundreds of millions of gadgets.
Apple and China have been linked for decades. That relationship has so far mostly led to mutual benefit. It is not expected that changes will happen overnight. Apple still releases new iPhone models every year, in addition to updates to its iPads, laptops and other products.
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