Apple has told some of its contract manufacturers that it wants to increase production outside China, the Wall Street Journal reported.
Apple 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.