Apple is working day and night to expand iPhone production outside of China

It’s no secret that Apple wants to reduce its reliance on Chinese manufacturing operations, and recent difficulties faced by its suppliers in the country have convinced the company to accelerate efforts on this front.

That’s why Apple is said to be working on expanding its manufacturing capacity overseas right now, with research firm TrendForce revealing that up to 35% of manufacturing capacity would be in Vietnam or India if Apple wants to meet demand in North America using non-Chinese locations.

Due to growing concerns over geopolitical tensions, Apple intends to significantly increase the number of overseas manufacturing sites located outside of China. By 2023, Apple aims to double its device manufacturing capacity in India and have factories in Vietnam start making contributions in the middle of the year.” explains TrendForce.

Given the escalating trade conflict between China and the United States, Apple will be forced to rely solely on manufacturing sites outside of China to meet sales demand from the North American market.“. To do this, TrendForce estimates that at least 30-35% of Apple’s total device manufacturing capacity must be located in Vietnam and India. Therefore, “Apple will need to continue to increase the share of device production based in these two countries over the next few years.“.

One of the challenges there Chinese suppliers are forced to see that the lack of labor encountered after the government lifted certain restrictions. “There are also signs that the labor shortage may worsen. In addition to the various headwinds affecting the global economy, Apple is therefore once again facing a labor shortage that limits the production of their devices.” explains TrendForce.

Leave a Comment