Apple will reportedly move some iPad capacity from China to Vietnam
A large screen advertising the iPhone 13 series is displayed in a Wangfujing apple shop.
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AppleSome of the iPad manufacturing is being moved to Vietnam by Apple after disruptions in supply chains caused due to coronavirus locksdowns. This has led to product and parts shortages. Nikkei AsiaTuesday
It shows Apple trying to balance supply and demand to grow manufacturing in China. This process was accelerated by U.S. trade tensions with China. Apple is already producing iPhones some of its AirPodsVietnam is one example. It may increase iPad sales by shifting some iPad production from the United States to Vietnam.
Tim Cook, CEO of Apple Inc. stated that the iPad division had faced “very serious supply constraints” during April. second quarter. IPad revenues fell by 1.92% from a year ago, which was the only area of Apple’s overall business to see a decline. Apple’s Chief Financial Officer Luca Maestri predicted that there are many challenges facing the company in this quarter. He pointed out supply issues related to Covid-19, which could impact total sales between $4 billion-$8 billion.
Apple is asking suppliers to increase their stock of parts such as printed circuit board and electronic parts. Nikkei Asia reported Wednesday.
CNBC reached out to Apple for clarification but they did not respond immediately.