Apple Moving iPad Production From China to Vietnam Due To COVID-19 Situation

iPad production Vietnam

Apple plans to move some of its iPad production from China to Vietnam due to COVID-19 lockdowns. The Cupertino-based company has asked some of its suppliers to shift their production lines to Vietnam.

Apple Ask Suppliers to Relocate iPad Production to Vietnam

Earlier reports said that Apple plans to expand its manufacturing hub outside of China. Apple may have already begun implementing these plans. Nikkei Asia reported that Apple asked some of its iPad suppliers in China to shift more production to Vietnam. The report noted that this is the first time ever that Apple has done so.

Additionally, Nikkei Asia reported that Apple has been working with China’s BYD company. Apple has asked the company to build iPad production lines in Vietnam. Although it will initially produce a small number of iPads, Apple seemed serious about it that production line will start soon.

China’s COVID-19 Measures Affecting Apple’s Suppliers

China implemented zero-tolerance measures to stop the spread of the coronavirus. These measures seems to have been working so far. Unfortunately, the lockdowns affected the country’s economic production, too. Apple suppliers were among those severely affected. Furthermore, the continued lockdowns caused many factory workers to revolt against it.

The report also noted that Apple has asked many component suppliers to start building up their stock inventories. Apple made this request to allow suppliers to protect against future shortages and supply problems. Normally, Apple avoids tying up capital in inventory.

Finally, Nikkei Asia also wrote that Apple looked to suppliers in securing supplies of iPhone 14 processors.

All that being said, it’s now up to Apple’s iPad suppliers whether they heed Apple’s demand to shift production to Vietnam. Apple’s iPad suppliers must ensur an adequate supply of iPads, especially if Apple intends to announce new models in the coming months. Perhaps this could be the start of Vietnam becoming the next Apple manufacturing hub.

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Lee Dronick

I would think that it is more than COVID, it is the political situation.