Your next tablet may no longer come from China, the fault of COVID-19 once again…
New information from Nikkei Asia assures that Apple has started moving iPad production from mainland China to Vietnam, a border state. On site are already assembled other devices from the firm at the apple, including the AirPods wireless headphones which are to date the best-selling all brands combined.
Still according to the same source, Cupertino would also have asked some of its suppliers to drastically increase their production rate. A particularly risky request for those concerned, since the demand for mobiles seems to have dried up for several months now , in particular because of the coronavirus crisis in the Middle Kingdom. Let’s now explore what could motivate these major changes in the Californian group’s strategy.
Quarantine and shortages, again
The reasons for these decisions lead us to repeat ourselves once again. Regarding the arrival of service providers in Vietnam, this would be an effective solution to fight against the strict confinement put in place by the authorities in Shanghai. On the spot, contaminations with the coronavirus have thus multiplied, consequently leading to the closure of certain key factories. Add to this that Apple is also pointing the finger at component shortages, and the matter is settled.
As for the increased demand for stocks, it could also be linked to the health restrictions of the Chinese economic capital. Apple would thus choose to
obligateoffer more contracts to certain builders far from the region at risk, in order to withdraw them from those who are still installed there and therefore blocked.
Among the companies concerned by the relocation to Vietnam, Nikkei evokes the case of BYD , historical assembler of iPads for several years now. The company has already begun to design production lines for tablets in the country, preparing at the same time to deliver the first products in limited quantities soon.
The stocks to be gathered in order to face the crisis would concern more printed circuits, chips for iPhone and other electronic components. Objective: set aside mobiles, Macs, iPads or even AirPods for a reserve of several months. Of course, we are talking here of tens of millions of units per range, if not more.