Apple wants to rely less on China



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Apple has asked its suppliers to investigate the possibility of move between 15 and 30% of its production capacity from China to the countries of Southeast Asia and Mexico, reported Nikkei newspaper today.

Several well-informed sources of these schemes told Nikkei that this effort is fueled in part by trade tensions between Washington and Beijing.

But according to the newspaper, in a note dated Taipei, even when this trade war is overcome Apple will continue these efforts as part of its efforts to diversify its supplier network and production network..

One source attributed this initiative to "a low birth rate (in China), higher labor costs and the risk of excessive centralization "of its network of suppliers for the manufacture of iPhone phones, notebooks, iPad tablets and other products of this brand.

More than 90% of the products sold by Apple are badembled in China.. Last year, Apple's suppliers in China and Hong Kong exceeded for the first time those of the United States (41 versus 37).

The alternative countries envisaged include: Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam are among the favorites for diversification in the manufacture of iPhone phones, according to Nikkei sources, unidentified.

About 5 million Chinese depend on Apple's presence in this country and its network of suppliers. In China alone, the company has about 10,000 employees.

The studies are looking for long term alternatives and the results will only appear in two or three years, said the manager of one of Apple 's suppliers to the Japanese newspaper.

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