The Wall Street Journal reported that Apple had told some of its contract manufacturers that it wants to expand production outside of China, citing people familiar with the situation.
Apple has short-listed India and Vietnam as alternatives, according to the report. India chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier chevalier
Last month, Apple predicted worsening supply issues as China’s COVID-19 lockdowns slowed production and demand.
According to the report, Apple’s decision is based on China’s strict anti-COVID policy, among other factors.
Apple declined to comment to the Wall Street Journal and could not be reached by Reuters on Saturday.
Earlier this month, Apple supplier Foxconn had predicted a challenging quarter for the parts maker. Foxconn warned that revenue for its electronics business, which includes smartphones, could fall in the current quarter as growth slowed due to rising inflation and cooling demand in China’s lockdown and escalating supply chain issues.
Like other global manufacturers, the world’s largest contract electronics manufacturer, the Taiwanese firm has dealt with a severe chip shortage, which has hampered smartphone production, including Apple’s primary client.
While the company reiterated that COVID-19 controls in China had a limited impact on production because workers were kept on-site in a “closed loop” system, demand for its products in the country has suffered as people remain trapped. The slowdown has recently been exacerbated by a drop in major markets due to high inflation and the Ukraine conflict.