Apple has accelerated its plans to leave Zhengzhou in China, where the massive iPhone City manufacturing zone is located!
Apple To Move MORE iPhone Production Out Of China!
As anti-government protests continue across China, Apple is accelerating its plans to leave Zhengzhou – where the massive iPhone City manufacturing zone is located!
Apple CEO Tim Cook is now eyeing Vietnam and India as new manufacturing hubs to replace Zhengzhou, where Foxconn workers earlier fled amidst repeated protests.
According to the Wall Street Journal, Apple now plans to move to 45% of iPhone production to factories in India, and ramp up production of its MacBooks, Apple Watches and AirPods in Vietnam.
Those moves come with serious challenges as Apple faces having to deal with different regional government bureaucracies in India.
Meanwhile, Vietnam only has 10% of China’s population, and can only handle a 60,000 person factory – far smaller than the 300,000 person “iPhone City” in Zhengzhou.
So Apple is still considering switching to other suppliers in China – Luxshare Precision Industry Co. and Wingtech Technology Co., although these alternate plans may be jeopardised by the Chinese government’s persistence with its Zero COVID policy.
Apple Earlier Planned To Move iPhone Production Out Of China!
While Apple had been planning the move for months due to the Chinese government’s insistence on Zero COVID policy, the recent uprisings at its Zhengzhou manufacturing hub has accelerated those plans.
In November, iPhone City in Zhengzhou erupted in violent protests by Foxconn employees over strict Zero COVID policies and pay disputes, prompting a lockdown.
This forced Foxconn to offer $1,400 to quit their jobs, and later, a $1,800 bonus to stay. Even so, manufacturing at Zhengzhou is down to about 20% of its capacity.
Foxconn has tried to shift some of its production to its Shenzhen factory, but it cannot make up the shortfall, which is reported to be as much as 6 million iPhone Pro smartphones.
Things got so bad the Chinese government even called on military veterans and CCP members to work at the iPhone City factories as volunteers!
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