Apple aims to enhance contract manufacturing outside China

Apple has told some of its contract manufacturers that it wants to increase production outside China, the Wall Street Journal reported.
Apple iphone 12 5G smartphone in SingaporeApple has generated sales of $50.57 billion from iPhones, $10.435 billion from Mac, $7.646 billion from iPad, $8.806 billion from Wearables, Home and Accessories and $19.821 billion from services during its March quarter.

The report said that Apple is citing China’s strict anti-Covid policy and other reasons for its decision.

India and Vietnam, which are already sites of Apple production, are among the countries short-listed by the company as alternatives.

Apple last month forecast bigger supply problems as COVID-19 lockdowns slowed production and demand in China.

Apple has posted revenue of $97.3 billion, up 9 percent year over year, and quarterly earnings per diluted share of $1.52, in its fiscal 2022 second quarter ended March 26, 2022.

Apple supplier Foxconn earlier warned that current-quarter revenue for its electronics business including smartphones could slip as growth slowed amid rising inflation, cooling demand and escalating supply chain issues partly due to lockdowns in China.

Taiwan-based Foxconn, the world’s largest contract electronics maker for Apple, is facing shortage of chips, which has hurt smartphone production including for its major client Apple.