The Wall Street Journal, citing well-informed anonymous sources, reported that Apple wants to increase the production of components for its devices – iPhone and MacBook – outside of China. The company expressed this desire to a number of its contractors.
Sources of The Wall Street Journal say that India and Vietnam are mentioned among the most likely applicants for the expansion of production. The publication notes that Apple’s desire to reduce the production of components in China is caused by strict anti-virus measures, which are introduced by the PRC authorities from time to time, sometimes completely closing entire cities.
Currently, more than 90% of components for the same iPhone, iPad and MacBook are made in China. At the same time, according to analysts cited by The Wall Street Journal, “such a high degree of dependence on one particular country carries potential risks due to the authoritarianism of the communist government in Beijing and its difficult relationship with the United States“.
In April, it became known that about half of Apple’s top 200 suppliers have manufacturing facilities in areas ordered by Chinese authorities to be placed under strict quarantine following a new outbreak of COVID-19. Apple CFO Luca Maestri later said the company could lose between $4 billion and $8 billion in the second quarter due to supply chain disruptions.