Rising US-China tensions are putting pressure on Apple to diversify its manufacturing base. Finding suitable options has not been easy. But Vietnam now looks set to play a bigger role. Apple is reportedly moving iPad product development resources to the south-east Asian nation for the first time.
Scrutiny of Apple’s dependence on China, where it makes about 90 per cent of its products, intensified last year in a row over Chinese factory workers’ protests over lockdowns. Since then, suppliers have placed their bets on Mexico, Malaysia, Thailand, Indonesia, Vietnam and India to become alternatives to China.
Apple has moved some of its iPhone production entry-level models and lower price products such as AirPods outside of China. But no one country seemed to be the right fit. Now, there is more clarity. Apple is working with China’s BYD, a key iPad assembler, to move the resources needed to design and develop new products to Vietnam.