Almost all production of the iPhone and other Apple devices is done in China. The factory of the world is also the factory of Apple. However, the company would be considering moving 30% of that production out of the Asian country. It seems that even now is discussing it with its main partners and suppliers .
As reported by Nikkei, Apple is in discussions with its suppliers for a “fundamental restructuring” of the supply chain. The idea would be to move between 15% and 30% of production outside China . Both 30% and 15% are very high figures considering all that Apple produces annually within China. The effects will be interesting to see.
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With the recent US veto on Huawei and with that trade war between the US and China, it is easier than ever to justify this possible partial departure of Apple from China. However, according to Nikkei, there are other determining factors that show that the trade war between the two countries is not the main culprit .
Obviously, there is a certain risk in centralising all production in a single supplier or place , which is why it is in Apple’s best interest to diversify its production to avoid possible scares. On the other hand, we must also take into account the lower birth rate and higher labour costs in China in recent years, points out the Asian environment.
At the moment it seems just an idea in its initial stages, and there is nothing set up to leave China. However, perhaps in the next few years we will see Foxconn, Pegatron, Wistron and other Apple suppliers make a move. While iPhone production has expanded beyond China in recent years to Brazil and India… China remains the leading country . For its part, Apple always indicates that its iPhone production depends on a global supply chain with iPhone components coming from all over the world.