Taipei: In a first such move, Apple is reportedly planning to shift some iPad production from China to Vietnam in and around Shanghai amid the Covid-lockdown, 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.
“The iPad will become the second major line of Apple products made in a Southeast Asian country after the AirPods earbud series,” the report said.
Apple shipped 58 million iPads last year.
BYD of China, one of the leading iPad assemblers, helped Apple build a production line 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.
“The requests apply to all of Apple’s product lines – iPhones, iPads, AirPods and MacBooks,” the report said, citing sources.
Apple was yet to comment on the report.
Shanghai began reopening the city on Wednesday and resumed normal production and living orders 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 effect on customer demand in China.”
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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