The US-China trade war has caused worrying waves in all large companies. For many years, Apple has relied almost exclusively on China when it comes to manufacturing and assembling its own products. Due to the current dangerous situation, the company is considering restructuring, according to a report.
The Nikkei Asian Review writes that Apple is considering a fundamental restructuring of its supply chain. Cupertino is said to have asked its own suppliers to calculate the costs of shifting 15-30 percent of production from China to another Southeast Asian country. According to the report, Apple does not want to move all production out of the Middle Kingdom. However, Apple would like to reduce its dependence on China somewhat in the long term - according to Nikkei. The plan would remain in place even if Washington and Beijing reach an agreement - but the trigger for this step was the trade warAn anonymous executive is said to have made the following statement to Nikkei: “A lower birth rate and rising labor costs are not conducive to excessive centralization of production in one country.”A shift in production on this scale takes time.
“Capital Expense Studies”
The transition could take around three years before significant changes are noticeable. According to the report, Apple has a department called "Capital Expense Studies." The purpose of this group is to discuss possible options with suppliers and initiate negotiations with governments about potential subsidies. According to Nikkei, the manufacturers are said to be Foxconn, Pegatron, Wistron, Quanta, Compa, and Invetec. iPhone production has expanded beyond China in recent years, with factories being built in Brazil and India, for example. Nevertheless, the vast majority of iPhone assembly takes place in China. (Image: C00)
