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Apple Asking Suppliers to Weigh Moving 15%-30% of Capacity From China: Nikkei

By Tanner Brown / Jun 20, 2019 11:32 AM / Business & Tech

Photo: VCG

Photo: VCG

Apple has asked its major suppliers to weigh the costs of moving 15% to 30% of their production capacity from China to Southeast Asia as it preps for a fundamental restructuring of its supply chain, the Nikkei Asian Review reported Wednesday.

Although Apple’s request was triggered by the ongoing trade tensions between the U.S. and China, multiple sources said that a resolution of the trade dispute may not change Apple’s decision. Several sources told Nikkei that Apple felt the risks of relying so heavily on China have become too costly.

The California tech giant has factored other calculations into its consideration, one executive with knowledge of the situation told Nikkei: “A lower birthrate, higher labor costs and the risk of overly centralizing its production in one country. These adverse factors are not going anywhere.”

Related: Huawei Smashes Samsung-Apple Smartphone Duopoly, but Does It Have Longer-Term Legs?

Contact reporter Tanner Brown (tannerbrown@caixin.com)


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