Apple Inc., the world’s second-most valuable company, has told some of its contract manufacturers that it wants to boost production outside China, citing Beijing’s strict anti-COVID policy among other reasons.
India and Vietnam, which already account for a small portion of Apple’s AAPL, +0.17 percent global output, are among the countries that the company is considering as alternatives to China.
According to analysts, outside contractors manufacture more than 90% of Apple products such as iPhones, iPads, and MacBook laptops in China.
Apple’s heavy dependence on the country is a potential risk because of Beijing’s authoritarian Communist government and its clashes with the U.S.
Any move by Apple to emphasize manufacturing outside of China could influence the thinking of other Western companies looking to reduce their reliance on China for manufacturing and key materials.
Such consideration has stepped up this year after Beijing refrained from criticizing Russia for its invasion of Ukraine and carried out lockdowns in some cities to fight Covid-19.