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Apple likely to shift production out of China amid protests: Report

The people involved in the discussions said that Apple is also looking to reduce the dependence on Taiwanese assemblers led by the Foxconn Technology Group. Apple, in recent weeks, has been making plans to move production out of China amid recent protests at the country’s Zhengzhou 'iPhone City' plant.

Apple likely to shift production out of China amid protests Report gcw
First Published Dec 4, 2022, 12:00 PM IST

In recent weeks, Apple has stepped up its efforts to move some of its production outside of China and has instructed suppliers to prepare more for the product's assembly in other parts of Asia, including India and Vietnam. Apple is also aiming to lessen its reliance on Taiwanese assemblers, particularly those headed by the Foxconn Technology Group, the Wall Street Journal reported.

Apple has decided to change its manufacturing due to the recent unrest at the "iPhone City" facility in Zhengzhou, China. Up to 300,000 people are employed by Foxconn in Zhengzhou, China, to produce iPhones and other Apple goods. According to reports, it formerly represented around 85% of the Pro series of iPhones.

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Late in November, demonstrations broke out at the largest iPhone manufacturing in the world, located in central China, as workers at the Foxconn facility fought to keep a COVID-19 epidemic under control while sustaining production in time for the busiest holiday season.

In videos protested online, the protesters were shouting "Stand up for your rights!" Riot police were present, the videos showed.

Apple has informed its manufacturing partners that it wants them to start attempting to undertake more of this work outside of China. According to supply-chain experts, nations like Vietnam and India will continue to play second fiddle until they can implement NPI as well. Reports suggest that the sluggish global economy and limited recruiting at Apple had made it difficult for the tech giant to dedicate workers for NPI work with new suppliers and new regions.

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Early in November, issues at the Foxconn manufacturing facility forced Apple to lower its projections for high-end iPhone 14 shipments and issue a rare investor alert due to the delays.

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