New information signedNikkei Asiaassures that Apple has started moving iPad production from mainland China to Vietnam, a border state. Other devices from the Apple firm are already assembled on site, includingAirPods wireless headphoneswhich are to date the best-selling of all brands combined.
Still according to the same source, Cupertino has also asked some of its suppliers to increasedrasticallytheir production rate. A particularly risky request for those interested, sincedemand for mobiles seems to have dried up for several months nowparticularly because of the coronavirus crisis in the Middle Kingdom. Let's now explore what could motivate these major changes in the Californian group's strategy.
Quarantine and shortages, again
The reasons for these decisions lead us to repeat ourselves once again. Regarding the arrival of service providers in Vietnam, this would be an effective solution to combat the strict confinement put in place by the authorities in Shanghai. On site, coronavirus contaminations have thus multiplied, consequently leading to theclosure of certain factorieskeys. Add to this that Apple is also pointing out component shortages, and the matter is settled.
As for the increased demand for stocks, it could also be linked to health restrictions in the Chinese economic capital. Apple would thus choose toto obligateoffer more contracts to certain manufacturers far from the region at risk, in order toremove themto those who are still installed there and therefore blocked.
Details
Among the companies concerned by relocation to Vietnam,Nikkeimentions the case ofBYD, historical assembler of iPads for several years now. The company has already started to design production lines for tablets in the country, preparing at the same time to deliver the first products in limited quantities shortly.
The stocks to be gathered in order to face the crisis would concern more printed circuits,chips for iPhoneand other electronic components. Objective: set aside mobiles, Macs, iPads or even AirPods for a reserve of several months. Of course, we are talking here about tens of millions of units per range, if not more.
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By : Keleops AG
