Apple has accelerated plans to move some of its manufacturing out of China, which has long been a dominant party in the supply chain that built the world’s most valuable company, according to people involved in discussions over the company’s new plan, the Wall Street Journal story on the subject said.
The media outlet also tells one of its latest stories that the company is now emphasizing more mass assembly of Apple products in other parts of Asia, particularly India and Vietnam, and is seeking to reduce dependence on Taiwanese assembly plants run by Foxconn Technology Group.
The turmoil in the place called iPhone City has helped Apple change its operations. In the giant city-within-a-city of Zhengzhou, China, 300,000 workers work in a Foxconn-run factory to produce iPhones and the company’s other products.
In late November, the Zhengzhou factory was rocked by violent protests. In videos posted on the internet, workers dissatisfied with Covid-19’s wages and restrictions are seen throwing objects and shouting “Stand up for your rights!”.
According to analysts and people in Apple’s supply chain, after events that have weakened China’s status as a robust manufacturing hub, the turmoil means Apple is no longer comfortable having much of its business tied up in one place.
According to people involved in the discussions, Apple has told its manufacturing partners that it wants to start trying to do more of that work outside of China. If places like India and Vietnam can’t do NPI as well, they’ll be left playing second fiddle, supply chain specialists say.
Apple and China have spent decades engaging in a relationship that has so far been mostly mutually beneficial. Change won’t come overnight. Apple still releases new iPhone models every year, along with constant updates to its iPads, laptops and other products. It should continue to run the plane while it changes the engine.
“Apple will have to find plenty of places to replace iPhone City. They’ll have to spread it out and make more villages instead of big cities.”
,Mr Pancica said.
The turmoil in the place called iPhone City has helped Apple change its operations. In the giant city-within-a-city in Zhengzhou, China, 300,000 workers work in a factory run by Foxconn to produce iPhones and other Apple products.
In late November, the Zhengzhou factory was rocked by violent protests. In videos posted on the internet, workers dissatisfied with Covid-19’s wages and restrictions are seen throwing objects and shouting “Stand up for your rights!”.
According to analysts and people in Apple’s supply chain, after events that have weakened China’s status as a robust manufacturing hub, the turmoil means Apple is no longer comfortable having much of its business tied up in one place.
According to people involved in the discussions, Apple has told its manufacturing partners that it wants to start trying to do more of that work outside of China. If places like India and Vietnam can’t do NPI as well, they’ll be left playing second fiddle, supply chain specialists say.
“Apple will have to find multiple places to replace iPhone City. They’re going to have to spread it out and do more villages instead of big cities.”
said Mr. Pancica, a former Foxconn executive
Apple and China have spent decades engaging in a relationship that has so far been mostly mutually beneficial. Change won’t come overnight. Apple still releases new iPhone models every year, along with constant updates to its iPads, laptops and other products. It should continue to run the plane while it changes the engine.
