WSJ: Apple Looking to Grow Manufacturing Outside of China
23 MAY 2022 - In news to stun no one, The Wall Street Journal says Apple is looking to increase production outside of China. Of course, whether it can is a whole other thing. The piece has unnamed sources saying Apple is looking more closely at ramping production in India and Vietnam. The primary worry seems to be not COVID, but ongoing tensions between China and the US. Or maybe it’s a combo. The Journal’s secret sources say spreading production around outside of China was a thing Apple wanted to do before the pandemic, though moves to do so were stifled by the pandemic. While it’s said to be eyeing that again, the Journal has people in the industry saying:
…many of the reasons Apple has long kept China as its manufacturing hub remain in place: a well-trained workforce, low costs relative to the U.S. and a deep network of parts suppliers that is hard to recreate elsewhere without years of effort.
Why so long? According to the Wall Street Journal, the number of qualified workers in China exceeds:
…the entire population of many alternative countries in Asia. Local governments in China have worked closely with Apple to ensure its contractors have adequate land, labor and supplies to assemble iPhones and other electronics in giant factories.
Also a plus: A middle class to buy the stuff Apple makes and sells.
Indications in the piece are that Apple would like to grow a big manufacturing based in India, thanks to its huge population and “low costs.” The parts to make the things would still come from China, though. China and India are not the best of friends, making that prospect challenging. China would rather see Vietnam or other southeast Asian countries win the race, according to the report.
One kind of has to wonder: If you do what China wants, are you really diversifying from China? Whatever the case, everything seems to be in the talking stage now. Apple has reportedly told manufacturing partners to start looking to options outside of China. If they all had plans tomorrow, the Journal indicates that it would take years to see them to fruition.
