Apple has been trying really hard to take its manufacturing processes outside of China. It has recently started producing the iPhone SE and the iPhone 11 in India, with plans to include the iPhone 12 in mid-2021. However, we now hear that Apple is starting to include Chinese firms in the production of the new Apple Watch Series 6 and one of the recently launched iPad models.
Apple has recently launched a couple of new Apple Watches, a new iPad, and a new iPad Air in its latest “Time Flies” event. These devices will most likely get tons of attention worldwide, so Apple has to get ready to have enough devices to comply with the demand. Now, a new supply-chain report suggests that Apple is already taking the necessary steps to deliver enough devices in the Chinese market by boosting the production of both the Apple Watch Series 6 and one of the new iPads.
According to Digitimes, Chinese made Apple Watches and iPads will be for Chinese customers, meaning that these new products will stay to be sold within the country. Manufacturing outside of China would be focused on supplying the need for other markets.
“In the wake of the US-China trade tensions, Apple is now seeking more Chinese suppliers to satisfy China’s domestic demand, while for non-China markets, Apple will rely more on Taiwanese makers to help it establish production sites outside of China.
“Apple is currently having Quanta and Foxconn manufacture Mac series products in the US. In India, Foxconn, Wistron and Pegatron are set to manufacture iPhones locally to mainly cater to domestic demand. In Vietnam, Compal, Foxconn, Pegatron and Inventec have plants manufacturing iPads, AirPods and iPhones at the moment.”
We are also expecting other companies to see an increase in Apple orders. Luxshare and BDT are the perfect examples for this, and they would also be working on the production of the Apple Watch Series 6 and the new Wi-Fi iPad series.
“Luxshare Precision Industry is a secondary supplier for the Apple Watch Series 6, while BYD is among the suppliers for the new Wi-Fi iPad series, according to industry sources.
“Foxconn Technology Group (Hon Hai Precision Industry) and Compal Electronics are the main suppliers for the new Apple Watch and iPads at the moment, but based on Chinese makers’ production quality, prices and extent of cooperation, the US-based brand is likely to shift more orders to Luxshare and BYD, the sources said.”
We also know that Apple’s supply-chain partners are also planning to build factories in the United States and other countries to take Apple production outside of China. This is to avoid any possible consequences caused by tensions between the US and China, which have led to a recent ban on popular Chinese apps and several actions against Huawei.