Apple Reportedly Considering Moving Up to 30% of Production Out of China to Diversify Supply Chain

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Jun 19, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    With the U.S.-China trade war seemingly showing no signs of slowing down, a new report claims that Apple is getting serious about diversifying its supply chain in an effort to reduce its reliance on Chinese manufacturing.

    iPhone disassembly robot Daisy

    Specifically, Apple has asked several of its major suppliers to evaluate the cost implications of shifting 15 to 30 percent of their production capacity from China to Southeast Asia countries as it prepares for a "fundamental restructuring of its supply chain," according to the Nikkei Asian Review.
    The countries being considered for diversification include Mexico, India, Vietnam, Indonesia, and Malaysia, with India and Vietnam among the favorites for iPhone assembly, according to the report. Apple supplier Wistron already assembles a limited quantity of iPhones in India.

    As part of the efforts, Apple reportedly has a so-called "capital expense studies team" tasked with negotiating with suppliers and governments.

    While these plans are said to have been triggered by the trade war, the report claims that Apple has decided the risks of relying so heavily on manufacturing in China are "too great and even rising" even if the trade war is eventually resolved.
    Apple currently relies on Chinese and Taiwanese companies for the vast majority of its manufacturing needs, so diversifying its supply chain would obviously take time. The report cites a source who believes it would take at least 18 months for production to begin in new locations.

    Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

    Article Link: Apple Reportedly Considering Moving Up to 30% of Production Out of China to Diversify Supply Chain
  2. ipponrg macrumors 65816

    Oct 15, 2008
  3. Hirakata macrumors 6502


    Mar 17, 2011
    Burbank, CA
    Good. Diversifying in many aspects of life is a good thing, and business is obviously one of them.
  4. magicschoolbus macrumors 65816


    May 27, 2014
  5. ThunderSkunk macrumors 68030


    Dec 31, 2007
    Milwaukee Area
    India. The future of everything is India.

    Or maybe, darkest Peru...
  6. jdclifford macrumors 6502

    Jul 26, 2011
    Sorry Donald, no US jobs. Trade imbalance with China will be transferred to other Asian countries instead. BRILLIANT! FINANCIAL GENIUS!
  7. ipponrg macrumors 65816

    Oct 15, 2008
    Some locations have better quality control than others. I wonder how this will impact.
  8. Agit21 macrumors regular

    Mar 9, 2016
    This is good news. Apple wont be selling much devices anyway and don’t get me started on Chinas theft of IP.
    Better move to other countries Tim.
  9. Andres Cantu macrumors 68030

    Andres Cantu

    May 31, 2015
    Rio Grande Valley in South Texas
    Sounds reactive rather than proactive. Surprising considering Apple is usually good at diversifying properly.
  10. YaBe macrumors 6502a


    Oct 5, 2017
    Difficult situation here, price hike for Trump taxes, or price hike for higher production cost? hmmmm
  11. pweicks macrumors regular


    Dec 23, 2016
  12. Zen_Arcade macrumors member

    Jun 3, 2019
    An intelligent move - Apple can see what’s happening and it would likely benefit from diversifying production and not having what is effectively a single point of failure.
  13. pweicks macrumors regular


    Dec 23, 2016
    And what’s your takeaway, oh wise one?
  14. kaycrystal626 macrumors member


    Oct 11, 2018
    So much for bringing jobs back to America! MAGA!
  15. Remy149 macrumors 6502

    Oct 20, 2016
    Not really they are just gonna move production to a different Asian country
    --- Post Merged, Jun 19, 2019 ---
    Sure everyone would be happy about iPhones being manufactured in the USA when they become something only the wealthy could realistically buy
  16. TheShadowKnows! macrumors 6502a


    Sep 30, 2014
    National Capital Region
    I say:
    Bring all the production to the separatist southern states, as they want to secede from the union under the MAGA banner: cheap labor, no taxes, state give-backs, and even fly proudly the confederate flag.

    MSSGA ::= Make Southern States Great Again./s
  17. Remy149 macrumors 6502

    Oct 20, 2016
    You want iPhones to double in price I guess
  18. dilbert99 macrumors 68020

    Jul 23, 2012
    Or the cynical might say a great excuse to move to cheaper labour.
  19. genovelle macrumors 6502a

    May 8, 2008
    Most countries like the US and other western countries have not made the investment in infrastructure and supply chain support to produce on scale. To do so independently can be cost prohibitive. Apple is now of a size and unit volume that supports an ecosystem being built around them. That was not the case just 5 to 6 years ago. Keep in mind they have been testing and doing limited manufacturing in some of these other countries over the last 3 or 4 years, but I’m sure they did not anticipate an unnecessary trade war being waged at their expense.
    --- Post Merged, Jun 19, 2019 ---
    And that still doesn’t include adding a single US job.
    --- Post Merged, Jun 19, 2019 ---
    Let me out first.
  20. Macpro2019 macrumors member

    Jun 7, 2019
  21. HiVolt macrumors 6502a


    Sep 29, 2008
    Toronto, Canada
    Here's an idea Apple... Why not make your own manufacturing facility, wherever you like?

    Sitting on all those billions must be itchy.
  22. hajime macrumors 603

    Jul 23, 2007
    Will MacBook Pro become more expensive from now on?
  23. Zen_Arcade macrumors member

    Jun 3, 2019
    That can also be part of what makes it intelligent, n’est-ce pas?
  24. Doug0915 macrumors newbie

    Jul 20, 2011
    And People wonder why Apple holds on to a mound of overseas cash.

    This is why. That cash mound will come in real handy if they have to move manufacturing out of China.
  25. Alessiot macrumors member


    Sep 13, 2016
    About time they did
  26. thadoggfather macrumors G4


    Oct 1, 2007
    no please dont leave China! China First. reeeeee

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186 June 19, 2019