Renewable Energy

Apple explores moving 15-30% of production capacity from China - Nikkei

Credit: REUTERS/HEINZ-PETER BADER

Apple Inc has asked its major suppliers to assess the cost implications of moving 15% to 30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, according to a Nikkei Asian Review report on Wednesday.

June 19 (Reuters) - Apple Inc AAPL.O has asked its major suppliers to assess the cost implications of moving 15% to 30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, according to a Nikkei Asian Review report on Wednesday.

Apple's request was a result of the extended Sino-U.S. trade dispute, but a trade resolution will not lead to a change in the company's decision, Nikkei said, citing multiple sources.

The iPhone maker has decided that the risks of depending heavily on manufacturing in China are too great and even rising, it said.

Key iPhone assemblers Foxconn 2317.TW, Pegatron Corp 4938.TW, Wistron Corp 3231.TW, major MacBook maker Quanta Computer Inc 2382.TW, iPad maker Compal Electronics Inc 2324.TW, and AirPods makers Inventec Corp 2356.TW, Luxshare-ICT and Goertek have been asked to evaluate options outside of China, Nikkei reported.

The countries being considered include Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam are among the favorites for smartphones, Nikkei said, citing sources who did not want to be identified as the discussions are private.

Apple did not immediately respond to a request for comment on the report.

(Reporting by Sathvik N in Bengaluru; editing by Gopakumar Warrier)

((Sathvik.N@thomsonreuters.com; +1-646-223-8780, outside N.America, +91-80-6749-2783; Reuters Messaging: Reuters Messaging: Sathvik.N.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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