Apple, like many other major tech companies, has long relied heavily on Chinese suppliers to manufacture its devices. However, last year’s iPhone production problems and the drop in shipments caused by the severe restrictions imposed by China due to the coronavirus forced the company to change its position..
Apple now places some of its device assembly orders outside of China to reduce its dependence on China. The company will also diversify its component suppliers, increasing orders for component supply from Taiwan-based AOET.
Apple expands production into regions
According to analyst Ming-Chi Kuo, AOET will start supplying optical modules for the cameras of iPad tablets from the second half of this year. The Taiwanese company is currently the largest supplier of optical modules for the Mac. The analyst believes AOET can “follow in the footsteps of Sunny Optical, which first supplies parts for the iPad and then takes orders to supply components for the iPhone.”
But most importantly, according to Ming-Chi Kuo, Apple intends to use the Taiwanese company to advance its long-term plan to reduce its reliance on Chinese suppliers.
In December, it was reported that Apple is seriously considering producing iPads for the first time in India, where it already produces iPhone smartphones. The company is also moving production of Apple Watch smartwatches and MacBook laptops to Vietnam, and some iPhone models are made in Brazil.
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