Apple could start making iPads in Vietnam in the middle of this year, marking the first time that a “significant number” of tablets would be produced outside of China, Nikkei reports. In addition to changing iPad production, Apple is also increasing the number of iPhones made in India, where it has produced some iPhone 11 units since last year. The company will start producing iPhone 12 series devices in the country as early as this quarter.
The report shows a company that is increasingly interested in diversifying its production outside of China, despite hopes that commercial tensions may ease under the Biden government. Nikkei notes that the new government has said it will not immediately cut tariffs on Chinese imports, and there are other factors, too, such as rising labor costs in China, which has prompted Apple and other companies to look for alternative manufacturing centers.
In addition to iPhones and iPads, Nikkei reports that Apple is increasing the manufacture of a number of other devices outside of China. After reports from last year that Apple moved the manufacture of some AirPods Pro to Vietnam, Nikkei says it is also planning to expand production of the mini HomePod in the country and will also move part of the production of the MacBook. (Reuters reported Apple’s first plans to move production of the MacBook and iPad to Vietnam last year.) Part of the production of the Mac mini was also transferred to Malaysia, Nikkei grades.
News of changes in Apple’s supply chains comes just under two years after reports emerged that Apple planned to transfer between 15 and 30% of its production outside China. Now it seems that much of that change is underway.