Apple supplier Pegatron is looking to Vietnam as a location to possibly carry out some of its manufacturing work.
The move would help Pegatron, one of Apple’s biggest suppliers, diversify beyond its current home in China.
Apple may be trying to wean itself off manufacturing in China, but despite its use of factories in Brazil and India, it’s actually relying on China more than ever.
According to Reuters, the majority of Apple suppliers have become increasingly concentrated in China. Although Apple uses small factories outside the country, these are typically used only for small domestic runs.
Apple has reportedly asked its main suppliers to evaluate the cost of shifting 15% to 30% of their production from China to Southeast Asia.
This is a response to the burgeoning China and U.S. trade war, which has already impacted Apple’s share price. If new tariffs go into effect, it could drive up the cost of Apple devices considerably.
Apple manufacturing partner Pegatron plans to invest up to $1 billion in a new iPhone chip plant in Indonesia.
The Taiwanese company outlined its plans in a letter of intent to the Indonesian government, according to a new report. Pegatron plans to work alongside local company PT San Nusapersada.
Apple manufacturer Pegatron is reportedly set to start assembling MacBooks and iPads in Indonesia, starting next month.
The news comes at a time when more and more people are concerned about a burgeoning trade war between the U.S. and China. Because a large number of Apple’s products are manufactured in China, the possibility of new import tariffs could have a detrimental impact on the company.
Plans for an iPhone SE 2 may have gone the way of the dodo, but Apple may not have abandoned its iPhone SE philosophy of squeezing new components into an old iPhone form factor.
According to a new report, Apple plans to release a new version of the iPhone 8 with new, up-to-date internals. While users probably won’t get Face ID, they may get an A13 processor, redesigned printing circuit board, and more.
More and more Apple suppliers are considering building devices in India, and a new concession might make that possibility even more plausible.
According to a new report, India has deferred a plan which would have introduced tax on touch panel imports. These tariffs were supposed to be introduced in February, but have supposedly been delayed until at least April 2020. This follows lobbying from smartphone makers.
According to the Financial Times, Apple manufacturer Pegatron is planning to build new production lines in India, Vietnam and India. Pegatron accounts for around 30 percent of Apple’s assembly orders.
It follows on from news suggesting that fellow Apple supplier Foxconn is also considering production in India and Vietnam.
Foxconn, Apple’s largest manufacturing partner, has cut 50,000 workers ahead of schedule as a result of weak iPhone demand.
The first cuts came last October, months before Foxconn typically scales back its workforce in preparation for slow season, according to a source familiar with the move. It is believed that Foxconn isn’t the only Apple supplier making cuts, either.
Apple is shifting orders for the iPhone XR between its suppliers to make sure that there are as few supply constraints as possible when the device finally launches in October.
