Apple is reportedly shifting more production of iPhones away from China, where some cities have been hit with prolonged Covid-19 lockdowns causing production bottlenecks.
The Wall Street Journal (WSJ) reports that Apple is considering increasing output in India and Vietnam as it accelerates a shift of production to other markets to reduce its reliance on China due to the nation’s zero Covid-19 policy and rising trade tensions with the US.
Apple held talks with existing suppliers about increasing output in India with some China-based contractors looking to Vietnam and other Southeast Asian countries, WSJ wrote.
Executives warned in April supply issues in China could weigh on revenue in its current fiscal quarter by up to $8 billion.
Last month, Reuters reported Apple began manufacturing its iPhone 13 flagship in India, a market where it began production in 2017.
Reuters added Apple also plans to produce its latest iPad tablets in the country.
Despite such moves, China reportedly continues to account for the vast majority of Apple’s global production.
