It’s no secret that Apple relies heavily on China to assemble most of its products, including the highly lucrative Apple iPhone. However, a new report suggests that Apple could be in the process of moving most of its production and/or assembly out of China. This report by Nikkei suggests that Apple could move around 30% of its production out of the region, which could be a big blow to contract manufacturers and assemblers like Foxconn.
Apple is believed to have asked most of its suppliers including Compal, Foxconn, Inventec, Pegatron, and Quanta to evaluate costs for an eventual move out of the region. Most of these companies are known for assembling devices like the AirPods, MacBooks, as well as the iPad. While countries like India and Vietnam have been considered favorites to take over the bulk of the mantle, it is being reported that companies are also considering Mexico, Indonesia, and Malaysia, pending the local government’s support with regards to infrastructure.
Apple appears to be in no hurry to rush to a judgment as per the report, instead giving its contract manufacturers the time to work with partners to ensure that the best results are achieved. Cost will also be a big factor for Apple to consider. With growing production costs in China and the government’s souring relationship with its U.S. counterpart, this could also be a strategic move by Apple prompted by current events. In any case, this is not a change that will come into effect immediately, so don’t hold your breath to see Apple’s flagship devices being produced anywhere out of China.