Apple shifting some iPad production to Vietnam amid China lockdowns

In a first such move, Apple is reportedly planning to shift some iPad production out of China to Vietnam amid Covid-lockdowns in and around Shanghai, media reports said on Wednesday.

Apple iPad 8th Generation
The Cupertino, California-based tech giant has also asked suppliers to move quickly to secure supplies of some chips for the upcoming iPhones.
IANS Taipei
2 min read Last Updated : Jun 01 2022 | 4:14 PM IST

In a first such move, Apple is reportedly planning to shift some iPad production out of China to Vietnam amid Covid-lockdowns in and around Shanghai, media reports said on Wednesday.

According to a report in Nikkei Asia, the iPhone maker has asked multiple component suppliers to build up their inventories to meet future shortages and supply chain issues.

"The iPad will become the second major line of Apple products made in the Southeast Asian country, following the AirPods earbud series," said the report.

Apple shipped 58 million iPads last year.

China's BYD, which is one of the leading iPad assemblers, helped Apple build production lines in Vietnam.

According to the report, it "could soon start to produce a small number of the iconic tablets there".

The Cupertino, California-based tech giant has also asked suppliers to move quickly to secure supplies of some chips for the upcoming iPhones.

"The requests apply to all of Apple's product lines -- iPhones, iPads, AirPods and MacBooks," said the report, citing sources.

Apple was yet to comment on the report.

Shanghai on Wednesday began reopening the city and restoring the normal order of production and living, on the premise of containing the overall risk of Covid-19.

According to reports, Shanghai ended its two-month citywide lockdown, cautiously giving free rein to 2.67 million businesses to resume operations.

Apple CEO Tim Cook said in the company's latest earnings call that "we have estimated the constraints to be in the range of $4 to $8 billion and these constraints are primarily centred around the Shanghai corridor".

"The Covid-related disruptions are also having some impact on customer demand in China," added Apple CFO Luca Maestri.

More than half of Apple's 200 main suppliers have facilities in Shanghai and the surrounding regions. In Shanghai, 31 companies run production facilities that supply to Apple.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Apple iPadVietnamChina

First Published: Jun 01 2022 | 4:12 PM IST

Next Story