Negotiations with suppliers started
According to the news of The Wall Street Journal (WSJ), Apple has started to inform suppliers to move iPhone production to India and Vietnam. The new change is expected to reduce dependency on Foxconn in particular. In addition, the shared report states that Apple executives have been aware of the risks in China for a long time, but have not taken any action in this regard.
To recall, at the Foxconn Zhengzhou factory, which is responsible for the production of Pro model iPhone devices, the curfews and worker protests caused by China’s Zero COVID-19 government policies caused a large disruption of production. Analyst Daniel Ives said that “what happened at the Foxconn factory in China was the last straw for Apple.”
Analyst Ming-Chi Kuo, on the other hand, said that Apple plans to increase iPhone production in India from the current single digits to 40-45 percent. In addition, Vietnam is expected to produce more in other product lines such as AirPods, Apple Watch and MacBook models.