following the lockdown that affected factories in China last year, the Apple has been intensifying the search for geographical diversification in the production of iPhones and its other products. A Foxconn — Apple’s main supplier — has already invested, for example, US$500 million in factories in India, in addition to which part of the production of MacBooks should be transferred to the Vietnam in this year.
Still in Vietnam, Foxconn recently closed a contract with the Vietnamese Saigon-Bac Giang Industrial Park Corp to occupy an area of 45 hectares, for US$62.5 million. According to South China Morning Postthe idea is to meet “operational needs and expand production capacity”, according to tax documents.
The area is in the province of Bac Giang, east of the capital Hanoi, and the contract is valid until 2057, showing that the plans are for the long term. Last year, as revealed by the Archyde.comFoxconn also closed a deal worth US$300 million with the Vietnamese developer Bac City Bible to expand current production in the north of the country, where AirPods and iPhones are produced.
As we’ve already reported, Apple’s revenue declined in the first fiscal quarter of the year compared to the same period of the previous year. One of the reasons for this was the problems faced with lockdowns in China, which even affected Foxconn’s own revenue.
At the financial results presentation conference, the CEO[/note]Chief executive officeror executive director.[/note] da Apple, Tim Cook, endorsed the company’s production diversification plans. He recalled that parts for iPhones and other products come from different countries and that this will continue to be optimized over time.
This process, however, will not be easy. A lot has already been invested in the Chinese factories, so they have a very high level, taking time for new locations to reach the level required by Apple. Only half of the iPhone chassis produced in India are used, for example, showing part of these challenges.
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via Apple World Today
