Apple to Start MacBook Production in Vietnam from May... Accelerating China Diversification
[Asia Economy Reporter Lee Ji-eun] Apple will start producing MacBooks in Vietnam from next year. This move reflects a strategy to diversify production bases, gradually withdrawing from China, its existing production hub.
Nikkei Asia reported on the 20th (local time) that Foxconn, Apple's largest partner based in Taiwan, plans to begin MacBook production in Vietnam as early as May next year. Apple's annual MacBook production volume reaches 20 to 24 million units. Since August, Apple has been actively discussing producing Apple Watch and the smart speaker HomePod in Vietnam, and it is known that the factory is currently running pilot operations in the market.
US economic broadcaster CNBC reported, "Apple is also discussing relocating some iPad production lines from China to India." Apple is reportedly in talks with several suppliers to produce key audio products such as AirPods in India starting next year. Apple began producing the iPhone 14 in India last September. It is estimated that iPhones produced in India will account for 6% of total shipments.
Apple's shift of production bases is attributed to China's stringent quarantine policies. Morgan Stanley predicted that Apple's Q4 shipments, initially expected to be around 77.5 million units, could decrease by about 3 million units due to China's lockdown measures. Wall Street expects that the sharp drop in production during the Christmas season, when iPhone demand increases, will negatively impact Apple's Q4 earnings.
The US-China trade dispute is also one of the reasons for Apple's relocation of its production bases from China. Following the Biden administration's announcement of semiconductor export bans to China, IT and semiconductor equipment companies have been scaling back their operations in China one after another.
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CNBC stated, "Concentrating production bases in China could trigger supply chain crises if US-China conflicts intensify," adding, "While Apple initially moved production bases simply to increase sales, it now views India, Vietnam, and others as strategic production hubs to diversify risks."
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