Apple mulls moving some production from China

Credit: Reuters Studio
Published on June 19, 2019 - Duration: 00:52s

Apple mulls moving some production from China

Apple has asked its major suppliers to assess the cost implications of moving 15-30% of their production capacity from China.

Fred Katayama reports.


Apple mulls moving some production from China

The U.S. trade war with China is reportedly pushing Apple to restructure its production chain.

The Nikkei Asian Review says the iPhone maker is exploring the idea of moving up to 30 percent of its suppliers' production capacity from China to Southeast Asia.

And it says that even if the trade dispute were resolved, the company would not change its mind about shifting production.

The Nikkei reports Apple has asked suppliers- INCLUDING ITS BIGGEST assembler- FOXCONN - to mull manufacturing options outside of China, such as Mexico, India, Vietnam, Indonesia and Malaysia.

Apple and Foxconn did not respond to Reuters request for comment.

Not only is China a key production base, it's a key market for Apple.

Apple gets nearly a fifth of its revenue from Greater China, and it's widely seen as a potential retaliatory target after the U.S. slapped restrictions on Chinese telecom giant, Huawei.

----------------------------------- The U.S. trade war with China is reportedly pushing Apple to restructure its production chain.

The Nikkei Asian Review says the iPhone maker is exploring the idea of moving up to 30 percent of its suppliers' production capacity from China to Southeast Asia.

And it says that even if the trade dispute were resolved, the company would not change its mind about shifting production.

The Nikkei reports Apple has asked suppliers to mull manufacturing options outside of China, such as Mexico, India, Vietnam, Indonesia and Malaysia.

Those suppliers include iPhone assemblers Foxconn, Pegatron, Wistron; MacBook maker Quanta Computer; iPod maker Compal Electronics and AirPods makers Inventec, Luxshare-ICT and Goertek.

Apple and Foxconn did not respond to Reuters request for comment.

Apple gets nearly a fifth of its revenue from Greater China, and it's widely seen as a potential retaliatory target after the U.S. slapped restrictions on Chinese telecom giant, Huawei.

Wedbush Securities says it would take at least 2 to 3 years for Apple to move 15% of its iPhone production from China to other regions.

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