Some iPad Production will move from China to Vietnam
The move is in hopes to ramp up production and recover the decrease in revenue for the iPad sector...
Apple’s iPad production will have a new home in Vietnam. Well, at least some of it was after the company decided to move from China after supply chain disruptions, according to Nikkei Asia reports.
The move shows Apple’s strategy for managing supply which will meet demand from consumers and expand the manufacturing of products outside of China. Currently, in Vietnam, Apple has taken advantage of the production of AirPods there. The shift now will move some iPad production to Vietnam in hopes to boost iPad revenues.
In April, Tim Cook said iPad production had “very significant supply constraints” in Q2. Revenue for the iPad was down 1.92% YOY and the ONLY segment within Apple’s revenue witnessed a drop. Apple’s CFO, Luca Maestri, had also wanted several challenges in front of the company in the current quarter that can eventually seep into a negative impact on sales by upwards of $8 Billion.
Some suppliers are being asked by Apple to build up supply reserves of components such as some electronic parts and printed circuit boards.