In a first such move, Apple is reportedly planning to shift some iPad production from China to Vietnam amid the COVID-lockdown in and around Shanghai, a media report said on Wednesday. According to a report by Nikkei Asia, the iPhone maker has asked several component suppliers to ramp up their inventory to meet future shortages and supply chain issues. “After the AirPods earbud series, the iPad will become the second major line of Apple products made in the Southeast Asian country,” the report said.
Apple 58 million. sent ipad Last year. China’s BYD, one of the leading iPad assemblers, helped Apple Manufacturing of production lines in Vietnam. As per the report, it may “soon start producing a small number of iconic tablets out there”. The Cupertino, California-based tech giant has also asked suppliers to move quickly to secure supplies of certain chips for upcoming iPhones.
“Requests apply to all product lines of Apple – iphone, ipad, AirPods and MacBooks,” said the report, citing sources. Apple was yet to comment on the report. Shanghai began reopening the city on Wednesday to restore normal order of production and living based on the overall risk of COVID-19. According to reports, Shanghai ended its two-month citywide lockdown, cautiously giving free rein to 2.67 million businesses to restart operations.
Apple CEO Tim Cook said in the company’s latest earnings call that “we have estimated bottlenecks to be in the range of $4 to $8 billion and these constraints are primarily concentrated around the Shanghai Corridor”. Apple’s CFO Luca Maestri said, “Covid-related disruptions are also having some impact on customer demand in China.”
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More than half of Apple’s 200 main suppliers have facilities in Shanghai and surrounding areas. In Shanghai, 31 companies run production facilities that supply Apple.
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