Apple Asks Suppliers to Evaluate Shifting Up to 30% Of Capacity Out of China [Report]


Apple has asked suppliers to evaluate shifting 15% to 30% of capacity from China to Southeast Asia, reports Nikkei Asian Review.
The site says Apple is preparing for a fundamental restructuring of its supply chain following trade tensions between the U.S. and China. Even trade disputes are resolved, the company is unlikely to turn back. Apple has apparently decided the risks of relying so heavily on manufacturing in China are too great.
"A lower birthrate, higher labor costs and the risk of overly centralizing its production in one country. These adverse factors are not going anywhere," said one executive with knowledge of the situation. "With or without the final round of the $300 billion tariff, Apple is following the big trend [to diversify production]," giving itself more flexibility, the person added.

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Author: Tomáš

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