A Nikkei Asian Review report on Wednesday said that the move is to prepare for a restructuring of its supply chain.
The California-based tech giant's request was triggered by the protracted trade tensions between Washington and Beijing, but multiple sources say that even if the spat is resolved there will be no turning back. Among these countries, India and Vietnam are the favourites which makes sense, given with their much lower currency and the amount of labour workforce. Those included iPhone assemblers Foxconn Technology Group, Pegatron Corp. and Wistron Corp., MacBook maker Quanta Computer Inc., iPad maker Compal Electronics Inc. and AirPod makers Inventec Corp., Luxshare-ICT and GoerTek Inc., Nikkei cited them as saying.
So what do you think of this scenario?
According to Bloomberg, Apple's Taiwanese manufacturing partner Hon Hai Precision Industry, or Foxconn, can make enough iPhones to meet the needs of Apple's USA market outside China. India and Vietnam are reportedly frontrunners for iPhone production.
Growing risks from its heavy dependence on manufacturing in China have been cited as Apple's reason to consider such an option.
One of Apple's key assemblers in China, Foxconn, recently denied it was planning to exit China, but said it had enough capacity to meet Apple's demand outside China for the U.S. market. The trade war between the USA and China is a threat to this lucrative status quo. Tariffs will affect almost all major Apple products, including iPhones, iPads, MacBooks, Apple Watches, AirPods, and the iMac, the company wrote. Hon Hai, known also as Foxconn, has said Apple has not given instructions to move production but it is capable of moving lines elsewhere according to customers' needs. The country is also a major consumer market in its own right, yielding almost 20% of last year's revenue - weakness there pushed Apple to cut its sales forecast in January. However it would take several years to move even a portion of production away from China given the complex ecosystem that has been established there. This has made Apple to create skilled workers in the course of time, which now led to around 5 MIllion Chinese jobs due to Apple and its products. Reports from India this year also said that Apple would start producing its iPhone X in India later this year with help from its biggest manufacturing partner Foxconn.
Some 88 percent of all coffee brewers sold in the United States are imported from China, Keurig counsel said in its public comments.