Apple to Shift Its IPad Production Capacity from Communist China to Vietnam

On June 1st, Apple decided to move some of its iPad production line from China to Vietnam. Sources said the shift was due to a forced lockdown in and around Shanghai that disrupted the product supply chain for several months. The Vietnam production line, which was set up with the help of China’s BYD, may soon be able to produce a small number of iconic iPad products. IPad production lines will be the second largest one that Apple has set up in the Southeast Asian country, after the AirPods earbud serials.
In addition, Apple has asked suppliers of components to increase their inventories by several months to guard against future shortages of goods. The requests apply to all of Apple’s product lines. A supplier in Jiangsu province, China, holds 40 percent of Apple’s parts business and another city holds the remaining 60 percent, which is a high-risk area for supply chain disruptions. Although suppliers in Jiangsu and Shanghai have gradually resumed partial production since mid-May, it will take several months for manufacturing capacity to be restored. Given the looming inflation and rising costs, it would be risky for any tech supplier to fully comply with Apple’s request.
The impact of the CCP embargo on large companies like Apple has been manageable, but it has had a serious impact on smaller companies such as automobiles, personal computers, and Android phones, which have had difficulty finding alternatives due to supply chain and cost limitations.