Apple suppliers are increasingly leaving China

Apple suppliers are increasingly leaving China and are making their products in Vietnam and India, among others. That claims the South China Morning Post newspaper. Foxconn and screen maker BOE, among others, are moving factories.

Foxconn would move some of its production to Vietnam, while BOE is also building two factories in the country, reports SCMP. BOE would make the displays for the upcoming iPhone 15 and iPhone 15 Plus, the newspaper claims. Production does not only go to Vietnam. The assembly of iPhones will also be partly moved to India in the coming years. Now 5 percent of iPhones come from that country, which is estimated to rise to a quarter or half within a few years.

The companies that supply products to Apple, and Apple itself, have several reasons to reduce their dependence on China. For example, the US and China are still embroiled in a trade dispute, making trade between the two countries difficult. For example, the previous US government imposed tariffs on many products made in China. In addition, Chinese workers are getting better pay, which increases the costs for producers. The corona lockdowns also played tricks on the suppliers. Now that the corona rules in China have largely been released, that influence will diminish. Most of Apple’s suppliers are still located in the United States, followed by China.

Foxconn India