Apple to Move Some IPad Production Capacity From China to Vietnam

Apple is transferring some of its iPad production from China to Vietnam after supply chain interruptions caused by coronavirus lockdowns contributed to product and part shortages.

In a report by Nikkei Asia, it said the US corporation has also urged numerous component suppliers to increase their stocks in order to avoid future shortages and supply issues.

According to persons familiar with the situation, China’s BYD, one of the top iPad assemblers, has helped Apple develop production lines in Vietnam and could soon begin producing a modest number of the iconic tablets there.

Apple, in an earlier report by Nikkei Asia last year, said it has long explored manufacturing iPads outside of China, but the rapid rise in COVID-19 cases in Vietnam a few months later put a stop to those plans.

Following the AirPods earbud series, the iPad will be the second significant line of Apple devices built in the Southeast Asian country.

The decision to move iPad production emphasized not only Apple’s ongoing efforts to diversify its supply chain but also the country’s rising relevance to the firm.

Last year, Apple supplied 58 million iPads, with China accounting for the great majority of the device’s suppliers.

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