More Apple suppliers looking to manufacture outside China


Apple display maker exec fired for embezzling millions of dollars
This could be one way around tariffs.
Photo: Kristal Chan/Cult of Mac

Two more manufacturers which regularly do work with Apple are eying up new potential plant locations outside of China. Wistron is reportedly looking to open a factory in the U.S. or, as a backup, Mexico. Chassis maker Catcher is, meanwhile, looking at Southeast Asia or Taiwan as locations.

This comes at a time when fears about a burgeoning trade war between China and the U.S. is making people worried about possible future trade.

Wistron has already started expanding overseas. A couple years back, it started producing iPhones in Bangalore, India. In attempting to open a plant in the U.S., it would follow in the footsteps of fellow manufacturer Foxconn. Foxconn is currently working to build a 13,000-worker factory in Wisconsin. However, this project has run into various problems.

A number of manufacturers are exploring overseas locations. Pegatron, for example, has talked about moving iPad and MacBook production out of China. Recently, Foxconn revealed that it had the capacity to produce all U.S.-directed iPhones out of China.

There are plenty of reasons manufacturers would want to expand their operations. But fear about tariffs is surely a big one. Some analysts have suggested that tariffs on imported Chinese products could result in increased prices of hundreds of dollars for Apple products.

As a result of this, the always business-savvy Apple may start looking at other places where it can have its products made cheaper. The likes of Wistron and Catcher no doubt want to be in a position to take advantage of this eventuality!

Source: Digitimes (paywall)


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