As we all know about the current crisis between US and China, it has affected production of major companies in the US including Apple, Dell Technologies Inc and HP. Due to this Apple is considering to shift its 15 to 30 percent production from china to somewhere else. This is mainly to avoid further Tariffs imposed by American President Donald Trump.
“With or without the final round of the $300 billion tariff, Apple is following the big trend [to diversify production].”
We have some other news which says that this transfer is not only because of the conflict between the two nations but to improve the supply chain of Apple Products. Apple may still move its production unit from China even if the conflict is resolved. Also, it is said that if the production continues in China, the prices may increase.
Apple’s manufacturing is highly depending on China and if they decide to ban US companies in an answer to the Huawei ban, this major company would be in great danger. The company is planning to move its production unit to some South-Asian countries rather than the US. The major countries included in this list are:
- Mexico
- India
- Vietnam
- Indonesia
- Malaysia
Apple has also asked some of their major production companies to find a production source outside china. These major companies include:
- Foxconn
- Pegatron Corp
- Wistron Corp
- Compal Electronics Inc.
- Quanta Computer Inc
- Inventev Corp
- Luxshare-ICT
- Gortek
China has made great progress in the production and supply of components and more than 5 million Chinese people’s jobs are Apple based and who knows what will be the effect of this 30% production transfer on them. Apple has not yet confirmed any specific date for this to happen but according some sources the movement of production is a long and complex procedure and it may take two to three years to move only 15%.
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