Apple to start iPad production in Vietnam to compensate for production problems in China

Soon, iPad production will no longer be exclusively in China. Apple will for the first time move some of its tablet production outside of the Asian giant and install it in Vietnam. This can be seen from the report asian nikkeiwhich ensures that the determination of those from Cupertino has been influenced by the impact of the most recent restrictions imposed by the Chinese authorities in the face of the COVID-19 outbreak.

This does not mean that Apple is ending iPad production in China, but that it has begun the process of diversifying its product line. This is something that has actually been rumored for a couple of years but has been delayed due to the pandemic.

There is no word yet on what percentage of iPad production will move from China to Vietnam. However, this is the first step that could symbolize a much more important change for the company led by Tim Cook. Let’s not forget that currently over 90% of Apple products are made in Chinaand it is estimated that the coronavirus lockdown could cost it up to $8 billion in sales in the current fiscal quarter.

Vietnam’s decision to move production of the iPad is no coincidence. Apple already knows its technology and business landscape; in fact, some components for the iPhone are already there, and AirPods 3 and AirPods Pro are also assembled in the country.

In the presentation of financial results for the second fiscal quarter, representatives of Cupertino said that The iPad was the only product category that didn’t grow year-over-year.. In fact, it was he who brought in the least revenue in the second quarter of 2022, where $7,600 million was registered; far behind the iPhone ($50.6 billion).

Apple brings iPad to Vietnam and stockpiles

Another interesting point from the report asian nikkei indicates that Apple’s idea of ​​fixing the failures on the Chinese production line is not limited to moving iPad production to Vietnam.

Knowing that the blockades in cities like Shanghai could be carried over to the new devices it will introduce in the fall, those from Cupertino urged their suppliers to accumulate certain stocks. Among them are printed circuit boards and other components. Thus, in the event of new failures at their plants, companies will have a margin to continue working and minimize the negative impact.

However, nothing can be taken for granted. A few days ago, reports were released detailing that the production of the iPhone 14 will already be delayed by several weeks due to inconvenience in China. The main model affected will be the iPhone 14 Max, which will replace the Mini version, although according to Ming Chi Kuo the situation will still be under control.

For now, Apple is targeting WWDC starting next Monday, June 6th. The traditional developer event is expected to bring big news for the iPhone, such as iPads with iOS 16 and iPadOS 16; at the same time, there are high hopes for the possible introduction of RealityOS, an operating system for mixed reality glasses developed in Cupertino.