Apple is planning to diversify and transfer a portion of its supply chains away from China
As part of their China Plus One policy, Apple, like most tech firms that rely on China for gadget manufacture, began to shift a percentage of their production facilities to other nations. Apple is now seeking to diversify and shift a chunk of its supply networks away from China.
While Apple had relocated a considerable chunk of the iPhone 14 series to plants in India and other nations, most of the main components were still supplied by China. Except for a few components manufactured in Taiwan, the majority of the hardware used to manufacture each iPhone is still manufactured in China. Apple is currently attempting to establish other supply chain methods and processes in order to lessen its reliance on China.
According to the Wall Street Journal, Apple has lately ‘advanced’ efforts to increase production outside of China. China’s strict COVID-19 legislation has regularly interrupted primary iPhone production plants, most notably in November with major worker protests.
Moving iPhone manufacturing away from China has been a difficult and time-consuming process. While transferring the final assembly factories outside the nation has been relatively simple, shifting the production plants for the iPhone’s components will be far more complex.
China’s industrial infrastructure and massive inexpensive labour force are difficult to find abroad, while nations such as India have stepped up and responded effectively to this. It will be significantly more difficult for Apple to rebuild the supply networks enjoyed by factories in China and shift the manufacturing of unfinished components to other nations.
To fulfil the iPhone’s expanding demands, Apple will need to progressively create similar supply chains in nations such as India. Apple is anticipated to outsource up to 40% of iPhone manufacture to other nations in the future.
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