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Apple will partially move the assembly of iPad and MacBook from China to Vietnam, which will reduce risks
Donald Trump’s presidential term has forced Apple to draw some conclusions about the concentration of production of its products in China. The company is now pushing Foxconn to partially relocate the iPad and MacBook assembly to Vietnam to mitigate future risks.
Image source: Reuters
The confrontation between the United States and China in the foreign trade sphere has already led to the fact that some of the names of Apple products fell under increased import duties. The pandemic only exacerbated the problem, since, due to the closure of borders, the concentration of production in a single country created logistical risks. According to Reuters, citing its own informed sources, Foxconn is preparing to organize the assembly of iPads and MacBooks at its facility in Vietnam; products of this range will begin to roll off the local assembly line in the first half of next year.
The production of iPads and MacBooks in China may decrease slightly, although this is unlikely to happen anytime soon, since at the last quarterly conference Apple complained that it could not keep up with the demand for tablets and laptops. Foxconn and Apple declined to comment on this publication. On Tuesday, Taiwanese contractor Apple announced the creation of a Vietnamese division called FuKang Technology – at least $ 270 million will be invested in the development of the company.
A local business will serve more than just Apple. Parent company Foxconn intends to build Sony TVs here by early next year. There is a place on the Vietnamese conveyor for computer keyboards. Apple iPads have so far been assembled exclusively in China, so a partial transfer of production to Vietnam is relevant in terms of geographic risk diversification. Foxconn may spend at least $ 1 billion on building an iPhone assembly plant in India. IPad tablets commissioned by Apple are also assembled by Compal Electronics and BYD Electronics. Foxconn rival Pegatron prepares to assemble Apple products for the US market in Mexico.