People walk past an apple store in Wangfujing with an advertisement for the iPhone 13 series on a large screen.
Sheldon Cooper | LightRocket | Getty Images
Apple is moving some of its iPad production from China to Vietnam after supply chain disruptions stemming from the coronavirus lockdowns contributed to product and parts shortages. Nikkei Asia said Wednesday.
It shows how Apple is trying to manage supply to meet consumer demand and expand manufacturing outside of China, a process that began to intensify as US-China trade tensions escalated. The iPhone Manufacturer Already Produces Its some AirPods For example, in Vietnam. Moving some iPad production to Vietnam could help it increase iPad revenue.
CEO Tim Cook said in April that the company’s iPad segment had “very significant supply constraints”. Second quarter, iPad revenue was down 1.92% year over year, the only segment of Apple’s business that saw a decline. And Apple CFO Luca Maestri warned the company of several challenges in the current quarter, including supply constraints. COVID-19 That could hurt total sales between $4 billion and $8 billion.
Apple has asked some suppliers to build their supply stores of printed circuit boards and some electronics parts, especially components made around Shanghai. Nikkei Asia reported on Wednesday,
An Apple spokesperson did not immediately respond to CNBC’s request for comment.
Read the full Nikkei Asia report here.
Correction: The Nikkei Asia report was on Wednesday. An earlier version misspelled the day.