You might be aware of the trade war going on between US and China. Apple is worried about the situation and is looking for a way to reduce risk. For which Apple is trying to move 15 to 30% of production outside China.
As per a report by Nikkei, 90% of Apple’s products are assembled in China. Which is the exact reason why the company is worried about the intensifying US-China trade war situation.
In the late 2018, Apple set-up a separate team of 30-50 people who are investigating to find the best way to move out of China. Apple’s suppliers including – Compal, Goertek, Foxconn, Inventec, Luxshare, Pegatron, Quanta, and Wistron. All of them are ready to re-locate their production units to some other country in order to help Apple from rising the retail price and reduce future risk.
The team has been in constant touch with various Governments and local-authorities in order to get the best terms and deals for their suppliers. The new Apple plant locations can be in Mexico, India, Vietnam, Indonesia and Malaysia. Out of which the company already has one assembly location in India.
However, suppliers also claim that Apple is looking for a very high quality of work. Which may require up-to one and a half year to set-up.
Foxconn in an interview said, it is ready to move entire assembly production out of China, if Apple says so.
Now, we need to wait and see what step or what alternative does Apple’s team comes up with. This shall decide the future prices of Apple products. The situation can also have a huge impact on the upcoming iPhone 11.
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