Apple’s key manufacturers have halted half of its production capacity across China. The lockdown has forced Foxconn (aka Hon Hai Precision Industries Co), Wistron Corp, Inventec Corp, and Pegatron Corp to suspend their production in China. These partners are reportedly reorganising their supply chains. The coronavirus has ravaged the supply chains as well as the global economy.
Wistron Corp already produces some iPhone technology in India as well as Vietnam and Mexico. The company said that it is looking at moving half of its capacity outside of China this year. The company plans to invest half a billion dollars for the relocation. In an earnings call, Wistron’s Chairman Simon Lin said, “We understand from a lot of messages from our customers that they believe this is something we have to do. They’re happy and appreciate that we can continue to make such a move and they will continue to work with us.”
Apple’s other manufacturer, Pegatron is planning to expand its manufacturing to other countries such as India, Vietnam, and Indonesia. The iPhone assembler had purchased land in Taiwan to set up a plant.
The key manufacturer, Foxconn is also looking at diversifying its manufacturing sites. The company already has a large presence in India. Foxconn’s India plant takes care of manufacturing low-end iPhones. It is highly likely that Foxconn will move production of all iPhone range to India.
In late February, Apple’s CEO Tim Cook had said, “We’re talking about adjusting some knobs, not some sort of wholesale, fundamental change.” The decision has been underway since the trade war between China and the US reached its peak last year.