Apple has announced plans to move some iPhone production out of China after violent protests at the Foxconn factory
Apple in recent weeks has been accelerating plans to shift some of its iPhone production out of China and asking suppliers to further plan product assembly elsewhere in Asia, particularly India and Vietnam. According to the Wall Street Journal, those involved in the talks said Apple was also looking to reduce reliance on Taiwanese assemblers led by the Foxconn Technology Group.
Recent unrest at China’s Zhengzhou “iPhone City” factory could prompt Apple to shift production, according to a Wall Street Journal report. In China, Zhengzhou has up to 300,000 workers working in a factory run by Foxconn to make iPhones and other Apple products. At one point, it alone accounted for around 85% of the Pro line of iPhones, according to market research firm Counterpoint Research.
In late November, protests erupted at the world’s largest iPhone factory in central China as Foxconn factory authorities struggled to contain a COVID-19 outbreak while maintaining production ahead of the peak season. holidays.
In protest videos online, protesters shouted “Defend your rights!” Riot police were present, videos show. The location of one of the videos was verified by news agency and video verification service Storyful, The Wall Street Journal reported.
After a year of events that weakened China’s status as a stable manufacturing hub, the upheaval means Apple no longer feels comfortable having so much of its tied-up business in one place, according to analysts and members of Apple’s supply chain.
Apple has told its manufacturing partners that it wants them to start trying to do more of this work outside of China, according to people involved in the talks. Unless places like India and Vietnam can also do new product introductions (NPIs), they will be stuck playing second fiddle, supply chain specialists say.
However, the slowing global economy and slowing hiring at Apple have made it difficult for the tech giant to staff NPI’s work with new suppliers and new countries, some of the people attending the talks said. discussions, reported the Wall Street Journal.
Earlier in November, problems at the Foxconn factory led Apple to cut estimates for high-end iPhone 14 shipments and issue a rare warning to investors about the delays.
China further muddies Apple’s stretched bid and highlights how the country’s strict zero Covid policy is hurting global tech companies.
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