Apple is moving from China, but not entirely, as it is only transferring part of its manufacturing for iPad components. The technology company will move the production to Vietnam.
Nikkei Asia reported that this is the first time in history that Apple is making the move to withdraw some of its production for iPad parts outside of China. For decades, the manufacturer of iPads has been producing its entire product line in the territory.
The company was said to have cited supply chain disruptions as well as unstable manufacturing schedules as reasons for the decision to leave the Chinese factory for Vietnam. Blockages in the country may also have contributed to the company’s decision to start producing parts of its iPad in another country.
As mentioned in Fox Business, business operations in China have usually been suspended due to the government’s mandate related to COVID-19. Restrictions have forced factory workers to stay in their bedrooms for a long time and the plants are closed, so companies have been forced to stop production and Apple may have already experienced this situation.
In fact, the manufacturing operations of other major technology companies such as Foxconn, Tencent and Huawei were also affected by the country’s aggressive move to stop the spread of the COVID-19 virus. This strategy has been called the zero-COVID scheme in China.
According to CNBC, Apple will begin relocating some of its iPad production to Vietnam once the locks are lifted. The company hopes that its move will resolve or at least minimize the shortage of parts for its appliances.
The publication stated that this step that the company is taking only shows that it is trying to do everything possible to meet consumer demand and at the same time better manage supply. The move to Vietnam will also allow Apple to expand its parts manufacturing business outside of China.
In any case, Apple is already making some of its AirPods in Vietnam and, with the incorporation of iPad components, the company is gradually expanding its production in the country. It is said that the change will also help boost Apple’s profits with sales of iPads.