The very impressive images of workers at the Chinese Foxconn factory, Apple's main supplier, left their mark around ten days ago. We saw hundreds of themcome to blows with local police. Most denounce deplorable working conditions, while severe health restrictions become very difficult to bear.
Apple wants to rebalance its production by focusing on two countries
In addition to a bad publicity stunt for the Cupertino company, this also highlights its dependence on China. Thus, according to estimates by famous analyst Ming-Chi Kuo of TF International Securities, Apple will ship between 70 and 75 million iPhone units in the fourth quarter, ten fewer than expected, due to production delays.
The Apple brand, however, has a plan to resolve this problem. According to information fromWall Street Journal, Apple indeed wants to produce between 40 and 45% of its iPhones from India in the future. This represents a considerable increase as the current rate does not exceed 10%.
The Tech giant would not stop there in its desire to diversify its supply chain. We learn that he wants to establish a new manufacturing base in Vietnam for other devices such as the Apple Watch and AirPods.
But Rome was not built in a day. And to deploy production in these two countries, Apple must train local teams. A slowdown in hiring of engineers would delay this task for the moment, according to our colleagues.
Remember that this is not the first time that we have spoken to you about this idea of Apple to direct part of its productionto India and Vietnam. In any case, things seem to be becoming clearer, and the recent problems that have arisen in China are only accelerating things.
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By : Keleops AG
