Apple to Move Parts of iPad Production from China to Vietnam

Apple has already transferred parts of the AirPods production from China to other countries. Apple’s iPad is the second main Apple product to be assembled outside of China. Some iPhones have already been assembled in India to meet compliance.

Image Source: Visual China

Image Source: Visual China

BEIJING, June 1 (TMTPOST) — Multinational tech giant Apple is moving parts of its iPad production from China to Vietnam for the first time after the supply chain disruption caused by a months-long lockdown to curb Covid-19 resurgence in Shanghai, according to a news report by Nikkei Asia.

Apple has already transferred parts of the AirPods production from China to other countries. Apple’s iPad is the second main Apple product to be assembled outside of China. Some iPhones are assembled in India to meet compliance.

To prevent supply chain disruption, Apple has requested suppliers outside of regions affected by the pandemic to ensure the provision of components that can last for several months.

Apple’s manufacturing service supplier Foxconn has been trying to maintain the normal operation of its most important factories despite obstacles created by the new oubreaks of the Covid-19.

China’s BYD, one of the leading iPad assemblers, has helped Apple build production lines in Vietnam and could soon start producing a small number of iPads there, sources familiar with the matter said.

It is said that Apple has already considered moving some of its iPad capacity outside of China but the sudden resurgence of the Covid-19 pandemic in Vietnam put off the company’s plan.

Apple shipped 58 million iPads last year. The majority of iPad’s suppliers concentrate in China.

To avoid potential supply chain disruption, the company had also asked suppliers to build their inventory of components, such as printed circuit boards and mechanical and electronics parts, especially those made in and around Shanghai. Resurging Covid-19 cases in Shanghai had forced local businesses and plants to halt operation, creating a massive impact on the supply chain. The  requests from Apple apply to all of Apple’s product lines, including iPhones, iPads, AirPods and MacBooks, Nikkei Asia reported, citing sources.

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