‘Apple suppliers are increasingly leaving China’
Apple suppliers are increasingly leaving China and making their products in Vietnam and India, among others. This is what the South China Morning Post newspaper claims. Foxconn and screen maker BOE, among others, are moving factories.
Foxconn would move part 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 partly be 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 involved 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 increasingly paid better, which increases costs for producers. The corona lockdowns also affected suppliers. Now that the corona rules have largely been loosened in China, that influence will diminish. Most of Apple’s suppliers are still in the United States, followed by China.
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