Shock to China! Apple may start producing MacBook in Vietnam in 2023, good news for India

Apple China Manufacturing: Apple plans to start producing MacBooks in Vietnam by mid-2023, Apple says as it now seeks to diversify its production base outside China to other countries including India. The tech giant has tapped its top supplier Foxconn to start making MacBooks as early as May in the Southeast Asian countries, reports Nikkei Asia, citing sources.

‘Out of China’ production option

As per the report, the iPhone maker aims to have ‘out of China’ production options for key products amid the Covid lockdown, which has disrupted its supply chain. The report noted that Apple plans to move some MacBook production to Vietnam for the first time next year as it seeks to diversify its production base away from China amid rising technical tensions between Washington and Beijing. According to a Counterpoint Research report, Foxconn aims to relocate up to 30 percent of its capacity to India, Vietnam and Brazil.

Market is open for India

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It had developed higher production capacities in India and Vietnam before the recent disruption at the Zhengzhou plant in China. As of September 2022, there were 21 Apple suppliers in Vietnam. The Counterpoint report states that when it comes to smartphone production, manufacturing in India is set to grow by 16 percent (year-on-year) to over 44 million units in the second quarter (April-June) of 2022.

Earlier, The Wall Street Journal reported that Foxconn’s leadership is asking Apple suppliers to actively plan to assemble Apple products in Asia, particularly India and Vietnam, to reduce reliance on Taiwanese assemblers. Used to be. According to market research firm CMR, the contribution of the domestic iPhone manufacturing ring in India is expected to increase from 50 per cent in 2019 to 73 per cent in 2021.

import decreased in india

Meanwhile, the percentage of imported iPhones in India dropped from 50 percent in 2019 to 45 percent in 2020, 27 percent in 2021 and around 15 percent this year—showing the Make in India boom for Apple. According to analyst Ming-Chi Kuo, Apple aims to ship 40-45 percent of iPhones from India, compared to the single-digit percentage currently.

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