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Apple Moves iPhone, MacBook Production Out Of China

Apple is continuing to reduce its reliance on China for production of its most popular products, moving to India and Thailand for key manufacturing.

Last financial year saw Apple triple production of its iPhones in India, as Chinese production suffered through the country’s strict ‘zero COVID’ policy.

The company now makes 7 per cent of its iPhones in India, up from just 1 per cent in 2021.

This year will mark the first time that Apple manufactures a new iPhone concurrently in India as well as China, with plans to split production by the extent that one quarter of all iPhones will manufactured in India.

Apple’s key suppliers Foxconn, Wistron, and Pegatron ramped up their India production capabilities, and now employ some 60,000 workers in India.

In addition to this, Apple is in talks with suppliers to make its MacBooks in Thailand, following the move of its Apple Watch production to the country in 2021.

According to Nikkei Asia, the suppliers Apple are in talks with already have manufacturing complexes in Thailand for other clients, so can promise quick turnaround.

“Ideally, Apple asked us to set up facilities in Vietnam for MacBooks, following in the footsteps of other Apple suppliers, but we offered an alternative option of building the product at our Thailand plants, which still have a massive space that can be reserved for the client,” a senior executive at one of the suppliers told Nikkei Asia.

“As MacBook assembly will begin in Vietnam first, we could support the components from our Thailand plants, too. … It will only take two to three days of logistics and custom clearance.”

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