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.
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.