According to the Wall Street Journal, participants in the discussion said that Apple is also looking to reduce its reliance on Taiwanese assemblers.
Apple, in recent weeks, has been speeding up plans to move some of its production outside of China and has asked suppliers to plan product assembly elsewhere in Asia, especially in the United States. India and Vietnam.
The recent chaos at the ‘iPhone City’ factory in Zhengzhou of China has forced Apple to shift production. In China, Zhengzhou has up to 300,000 workers at a factory run by Foxconn that makes iPhones and other products. Apple Cosmetics. According to market research firm Counterpoint Research, at one point, it alone accounted for about 85% of the iPhone Pro lineup.
In late November, protests broke out at the world’s largest iPhone factory in central China as authorities at the Foxconn factory struggled to contain the outbreak of COVID-19 in the past few days. while maintaining production ahead of the peak holiday season.
In online protest videos, protesters shouted “Stand up for your rights!” Riot police were present, the videos showed. The location of one of the videos has been verified by news agency and video verification service Storyful, The Wall Street Journal reported.
After a year of events that undermined China’s status as a stable manufacturing hub, the upheaval means Apple no longer feels that way, according to analysts and people in Apple’s supply chain. feel comfortable having so many businesses tied up in one place.
Apple has told its manufacturing partners it wants them to start trying to do more of this work outside. China, according to the people involved in the discussion. Supply chain experts say that unless places like India and Vietnam can also do NPI, they will remain stuck in second place. However, the slowing global economy and slowing hiring at Apple have made it difficult for the tech giant to allocate staff for NPI to work with new suppliers and new countries. , several people in the discussion said, The Wall Street Journal reported.
In early November, problems at the Foxconn factory led Apple to cut estimates for high-end iPhone 14 shipments and issue a rare warning to investors about delays.
China is continuing to jostle for Apple’s strained supply and has highlighted how the country’s strict no-Covid policy is hurting global tech companies.