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Apple Looks Outside China as Lockdowns Disrupt Output – WSJ

The US tech giant is said to be planning to increase output outside China at sites it has shortlisted in India and Vietnam after being hit hard by Covid lockdowns


Apple store in India
A customer at an Apple reseller store in Mumbai, India. Photo: Reuters

 

Apple is looking at increasing production in India and Vietnam, outside its major Asia production base in China, the Wall Street Journal reported.

Citing people familiar with the matter, it said the US tech giant has already shortlisted sites in the two Asian countries and has told some of its contract manufacturers about the plan.

Apple last month forecast bigger supply problems ahead for the firm as Covid-19 lockdowns slowed production and demand in China.

 

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The report said that Apple was citing China’s strict anti-Covid policy and other reasons for its decision. 

Only last month Apple chief executive Tim Cook said Covid production problems in China were easing but added that semiconductor shortages remained a key issue. But that was before restrictions were tightened again earlier this month.

He said supply disruptions had been focused on a corridor in Shanghai but the pandemic was also affecting demand in China.

 

  • Reuters with additional editing by Sean O’Meara

Note: The headline on this report was amended on May 23, 2022.

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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