Apple is reportedly moving some of its iPad production out of China to Vietnam amid supply chain disruptions due to Covid-19 lockdowns.
According to sources, Apple had long considered moving iPad production outside of China since January 2021 but supply chain issues and Vietnam's rising Covid-19 infections have been delaying the plan.
Key Highlights
- China's BYD, one of the leading iPad assemblers, has assisted Apple in setting up new production lines in Vietnam and could start manufacturing the iPad in small quantities.
- Apple has also asked its suppliers to stock up component inventories to prevent any future shortages.
- The company is reportedly also quick in securing supplies of chips, particularly with regards to power management, for upcoming iPhone models.
- According to analysts, the impact of supply chain disruption on giant corporations like Apple remains "under control" while car manufacturers and smaller Android brands are being hit harder.
- In 2021, Apple shipped 57.8 million iPads worldwide, all of which were produced in China.
- The iPad is Apple's second major product line to be produced in Vietnam, after AirPods if the move goes through.
