Report: Apple tells suppliers it wants to expand manufacturing outside of China, India and Vietnam likely future production hubs

Apple has apparently advanced its plans to expand manufacturing outside of China, telling contract manufacturer partners that it is aiming to diversify production. According to the Wall Street Journal . report, this is what Apple has said.

Although some Apple products have been produced in other countries, such as Vietnam or India, the majority of Apple manufacturing is done in China at Foxconn’s and Pegatron’s facilities.

The Journal reports that Apple had been thinking about geographic expansion for some time, but was forced to halt any plans. However, the recent bout of strict lockdowns in Shanghai has reaffirmed the need to diversify.

China is also risky geopolitically. China’s trade disputes with the United States are also a problem.

However, any country can’t compete with China, which is large enough to fulfill Apple’s enormous order demands. Finding cheap, qualified, labor elsewhere is difficult. The transition to alternative production hubs like India or Vietnam will be slow and gradual.

Apple production partners like Foxconn have already established facilities in India to help produce iPhones for the domestic market there. A further expansion would see iPhones made in India and then exported for global sale.