Vietnam is the new manufacturi

2022-06-01

Vietnam is the new manufacturing source in Asia

Apple to Shift iPad Capacity to Vietnam Amid China Supply Chain Woes

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Comments

Kel9670ong
2022-06-01
Kel9670ong
wage is Vietnam is so much lower than China
mac0racle
2022-06-02
mac0racle
It’s a good move to reduce reliance on China and avoid placing all manufacturing eggs in one basket.
Maxsoh49
2022-06-01
Maxsoh49
Many branded shoes are made from there too!

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The requests apply to all of Apple&#39;s product lines -- iPhones, iPads, AirPods and MacBooks -- sources said.</p><p>Ideally, the company hopes these suppliers can prepare enough additional components to fully offset the amount made by those in Shanghai and nearby provinces such as Jiangsu, where the risk of supply chain disruption is higher, according to sources.</p><p>&#34;For example, component supplier X has a 40% share of Apple&#39;s business in Jiangsu Province, which is a risky region of supply chain disruption, and supplier Y in another city accounts for the remaining 60% share,&#34; one of the people with direct knowledge of the matter said. &#34;Apple would want supplier Y to build enough additional components to match supplier X&#39;s 40% share in the coming months in case production in Jiangsu is shut down again.&#34;</p><p>It would be risky for any tech supplier to fully comply with Apple&#39;s request, considering there are signs of slowing demand for consumer electronics amid looming inflation and rising energy costs, sources said. If Apple does not end up using the extra components, the suppliers could be left holding the bag.</p><p>&#34;Those additional stocks prepared for Apple could become a heavy burden for suppliers if the production of other suppliers isn&#39;t disrupted by lockdowns again,&#34; another supply chain executive told Nikkei Asia. The executive added that most suppliers would agree to build some additional stocks as a buffer, but they will &#34;definitely not&#34; increase supplies enough to fully offset their rivals&#39; shares.</p><p>All of these moves show how hard Apple is working to reduce its supply chain risks, people told Nikkei Asia. The U.S. tech titan has even helped some suppliers shoulder the additional logistics costs of airfreight and land transportation to ensure materials vital for production arrive on time.</p><p>Suppliers in Jiangsu Province and Shanghai have gradually resumed some production since early to mid-May, but most have said it could take at least a couple of months for manufacturing capacity to return to normal.</p><p>The local government in Shanghai said it will further open up the city -- which is home to 28 million people -- by June 1, with a focus on helping businesses get back to normal operations.</p><p>&#34;We will cancel all unreasonable restrictions for companies to resume working and production,&#34; a statement by the government statement said. 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The move highlights not only Apple's continuous efforts to diversify its supply chain but also the growing importance of Vietnam to the company. Apple shipped 58 million iPads last year, with the vast majority of the device's suppliers concentrated in China.To further guard against supply chain disruptions, Apple has also asked suppliers to build up additional supplies of components such as printed circuit boards and mechanical and electronics parts, especially those made in and around Shanghai, where COVID-related restrictions led to shortages and logistic delays. In addition, the company has asked suppliers to move quickly to secure supplies of some chips, especially power-related ones, for the upcoming iPhones.In particular, Apple is asking suppliers outside of the lockdown-affected areas to help build up a couple of months' worth of component supplies to ensure supply continuity over the next few months. The requests apply to all of Apple's product lines -- iPhones, iPads, AirPods and MacBooks -- sources said.Ideally, the company hopes these suppliers can prepare enough additional components to fully offset the amount made by those in Shanghai and nearby provinces such as Jiangsu, where the risk of supply chain disruption is higher, according to sources.\"For example, component supplier X has a 40% share of Apple's business in Jiangsu Province, which is a risky region of supply chain disruption, and supplier Y in another city accounts for the remaining 60% share,\" one of the people with direct knowledge of the matter said. \"Apple would want supplier Y to build enough additional components to match supplier X's 40% share in the coming months in case production in Jiangsu is shut down again.\"It would be risky for any tech supplier to fully comply with Apple's request, considering there are signs of slowing demand for consumer electronics amid looming inflation and rising energy costs, sources said. If Apple does not end up using the extra components, the suppliers could be left holding the bag.\"Those additional stocks prepared for Apple could become a heavy burden for suppliers if the production of other suppliers isn't disrupted by lockdowns again,\" another supply chain executive told Nikkei Asia. The executive added that most suppliers would agree to build some additional stocks as a buffer, but they will \"definitely not\" increase supplies enough to fully offset their rivals' shares.All of these moves show how hard Apple is working to reduce its supply chain risks, people told Nikkei Asia. 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","text":"Many branded shoes are made from there too! ","html":"Many branded shoes are made from there too! ","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"valid","coins":0,"score":0}],"isCommentEnd":false,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/9027700025"}