Apple is shifting its iPad production to Vietnam from China. Publication Nikkei Asia claims that this is the first time ever the Cupertino based giant has done this. Ever since COVID-19 along with lockdowns came into existence, China has been facing mass factory closures. This has caused supply chain disruptions for many OEMs.
Around half of Apple’s main suppliers are around the Shanghai region. COVID-related restrictions have resulted in shortages and logistic delays causing the iPad production to be hit. The company is reportedly working to resolve the issue. China’s BYD, a leading iPad assembler helped Apple build production lines in Vietnam and can soon start manufacturing tablets there. The Cupertino-based tech giant has also suggested multiple components suppliers (especially in lockdown affected areas) to stock up their inventories against future shortages and supply chain issues.
Apple has also requested suppliers to build component supplies for the brand’s all products including iPhones, iPads, AirPods, and MacBooks. This will ensure supply continuity over the next few months.
A report by Nikkei in January 2021 stated that Apple long considered manufacturing iPads outside China but a sudden surge in COVID-19 cases in Vietnam delayed the company’s plans.
The iPad will become the second major Apple product to be made in Vietnam after the company’s AirPods. The move hints at Apple’s continuous efforts at diversifying its supply chains as well as the importance of Vietnam to the company.
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