HomeEuropeApple will reportedly move some iPad capacity from China to Vietnam

Apple will reportedly move some iPad capacity from China to Vietnam

Individuals stroll previous an apple retailer in Wangfujing with iPhone 13 collection commercial on an enormous display screen.

Sheldon Cooper | LightRocket | Getty Pictures

Apple is shifting a few of its iPad manufacturing to Vietnam from China after provide chain disruptions stemming from coronavirus lockdowns have contributed to product and elements shortages, Nikkei Asia stated Wednesday.

It exhibits how Apple is making an attempt to handle provide to satisfy demand from customers and broaden manufacturing exterior of China, a course of it started to speed up as U.S.-China commerce tensions heightened. The iPhone maker already produces some of its AirPods in Vietnam, for instance. The shift to maneuver some iPad manufacturing to Vietnam could assist it enhance iPad income.

CEO Tim Cook dinner stated in April that the corporate’s iPad phase had “very vital provide constraints” within the second quarter. IPad income was down 1.92% 12 months over 12 months, the one phase of Apple’s enterprise that noticed a drop. And Apple CFO Luca Maestri warned of a number of challenges the corporate faces within the present quarter, together with provide constraints associated to Covid-19 that would damage complete gross sales by between $4 billion and $8 billion.

Apple has requested some suppliers to construct up their provide reserves of elements reminiscent of printed circuit boards and a few electronics elements, particularly these made round Shanghai, Nikkei Asia reported Wednesday.

An Apple spokesperson didn’t instantly reply to CNBC’s request for remark.

Read the full report from Nikkei Asia here.

Correction: The Nikkei Asia report was on Wednesday. An earlier model misstated the day.



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