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Apple Moving iPad Production From China to Vietnam Amid Supply Issues: Report

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According to a source, Apple is shifting some iPad manufacturing from China to Vietnam owing to supply chain difficulties. This is the first time the Cupertino business has moved its iPad models’ manufacture away from China.

One of the main reasons for Apple’s decision to relocate its iPad manufacturer to Vietnam is to avoid constraints imposed by tight COVID lockdowns in Shanghai and other Vietnamese cities.

However, owing to the autocratic regime in China, the US IT giant is planning to minimize its overall dependency on the country.

According to Nikkei Asia, China’s BYD assisted Apple in establishing manufacturing lines in Vietnam, citing sources familiar with the situation. According to reports, the contract manufacturer will shortly begin manufacturing a limited quantity of iPad models in the nation.

Following select AirPods models, the iPad will become Apple’s second major device to be made in the Southeast Asian nation due to the upgrade.

Apple is claimed to have urged its suppliers to build extra supplies of components, including printed circuit boards, to prevent supply shortages, particularly for parts manufactured in and near Shanghai, where COVID-related limitations are now affecting normal operations.

According to the article, the business is asking its supplier partners outside of the lockdown-affected regions to assist build component supplies for all of its product lines for a few months.

Apple is also alleged to have aided certain suppliers in meeting increased logistical expenses to maintain enough supply.

Although Shanghai is progressively opening up, component suppliers in the city and Jiangsu Province estimate that it would take “at least a couple of months” for production to resume.

Apple refused to comment to Nikkei Asia, but Gadgets 360 contacted the firm to clarify the specifics. When the company responds, this article will be updated.

Apple has been aiming to minimize its reliance on China for some time and intends to relocate manufacturing to the next available market, with Vietnam seeming to be the best fit.

The ease of obtaining labour and other resources for producing items such as the iPad is the key reason for Apple’s preference for Vietnam over China. However, owing to very complicated input supply networks, Apple may not be able to relocate all of its iPhone manufacturers outside of China shortly.

India is also reported to be a possibility for Apple; however, production of the iPhone would be restricted for a while.

According to TF Securities analyst Ming-Chi Kuo, Apple’s relocation of manufacturing capacity to India contains “possible geopolitical dangers,” which are not present in Vietnam.

Samsung, like Apple, has significant production-side integrations in Vietnam, which have already helped the business mitigate some of its supply challenges.

Following Samsung, Apple has dominated the worldwide tablet industry thus far. According to IDC, the iPad accounted for 31.5 per cent of the global tablet market in the first quarter. On the other hand, Samsung held second place with a 21.1 per cent market share.