With tensions between the U.S. and China continuing to rise, Apple wants to reduce its dependence on the Asian dictatorship. As a next step, Apple wants to outsource another part of its production to Vietnam.
Consistent move away from China?
Turning away from China is not a new step in the corporate policy of the US company. Apple already started manufacturing in India with the iPhone 12, which was further expanded with the introduction of the iPhone 13. AirPods and some iPads have already been produced in Vietnam for some time. Now, production there is to increase: The AppleWatch is to be completely manufactured there and some MacBook components are to be assembled in Vietnam after all.
However, the move away from China is not really consistent. Apple has entrusted two Chinese companies with the expansion of the production facilities and the further operation: Foxconn and Luxshare Precision take over the responsibility. Nevertheless, it can be expected that Apple will free itself from China to a certain extent by outsourcing production. With further restrictions, production is unlikely to stall too much. Furthermore, Apple will no longer be forced to bend to China’s will to the extent it is today. Most recently, for example, it became known that Apple would like to oblige suppliers from Taiwan to state China as the country of origin in the future. This should reduce problems with customs, but in all likelihood also increase sales opportunities in China.
Will the transition succeed?
It is questionable, however, whether the transition will succeed smoothly. This was not the case when production was moved to India. At the time, chaotic-looking images leaked to the public from the new factories. There were also reports of poor working conditions, food poisoning among employees and strikes. However, the situation has since calmed down – at least in the media.