Apple urgently needs a solution to the current production problems in China and they are already thinking about expanding outside of this country.
Bad and bad the situation of Apple in China and the production of the iPhone. The Wall Street Journal reports that those of Cupertino are trying to accelerate their expansion plans outside of China in terms of assembling their products. A new outbreak of COVID-19 and problems regarding worker protests have been his Achilles heels in recent weeks. What do you plan to do about it?
Apple considering new countries to expand its production capacity
Given the obvious complications in China, the possibility of expanding to countries where they already have a presence is being explored in terms of production bases. India and Vietnam are two of the countries that are strongest to concentrate the new bases if the main headquarters country is left.
Let’s remember that Cupertino already has experience with assembly plants and produces the oldest iPhones in India and Brazil. Vietnam mainly assembles AirPods and HomePods. It is not easy to move production of a product as important as the iPhone. The strongest risk factors are infrastructure and labor.
Manufacture of iPhone 14 in China
Adjusting to a new plant in another countryConsidering that China has been its base for many years, it will cost more than just money. It is necessary to satisfy the current demand for iPhone 14 Pro and future ones of this type. 40% of iPhone production could move to other countries.
In China, things are not going well (and they won’t be for a long time).
In addition to having this information previously exposed, The Wall Street Journal indicates that Apple is managing its suppliers in such a way that they want to do new product introductions. It has all the sense of the world, What they want to avoid in the future is having a problem like the one they currently have with the iPhone.
The goal is to build manufacturing ecosystems that can take a good load of products and solve production problems when a base plant has complications in the process.
Apple has a delay in the production and shipments of iPhones 14 Pro and 14 Pro Max
Since 2016, China has faced issues such as the trade war with the United States. Global economic weaknesses also produce internal changes both in countries such as China and with companies, Apple has faced a drop in hiring.
COVID-19 does not let go of both entities and Apple is suffering billions of dollars in losses, analysts say. Not having the iPhone 14 Pro with enough stock could be noticed in the following deliveries of financial results, as they forecast up to 6 million fewer units in production.
On the other hand, Apple is fighting with China and every move is being watched with a magnifying glass. The availability of AirDrop has been limited, it happens that in the face of recent protests against the Chinese government, users use this Apple tool to share information.