Apple suppliers want to leave China

Apple’s Chinese suppliers are planning to move production to Vietnam and India. It is reported by Bloomberg.

As it became known to the authors of the agency, manufacturers of equipment for Apple planned to diversify their business and reduce their dependence on China. In particular, GoerTek, which produces AirPods for Tim Cook’s corporation, wants to transfer its production. The firm has already committed $280 million to a new plant in Vietnam and plans to expand production in India.

According to experts, companies operating in China want to reduce risks due to growing tensions between Washington and Beijing, as well as a trade war between the two states. “Corporations will withdraw capacities from the country much faster than many observers expect,” the journalists emphasized. They estimate that 9 out of 10 Apple suppliers are already thinking about moving production to other countries.

Vietnam is considered a priority region for relocation, India is considered as a reserve business. However, this process will not be fast. Bloomberg Intelligence estimates that it could take eight years to get just 10 percent of Apple’s capacity outside of China.

At the end of December, it became known that Apple would transfer part of the production of premium iPhones from China to Vietnam. Thus, Foxconn will lose the status of the only manufacturer of top-end smartphones of the American brand.