The companies announced that Apple is shifting some iPad production from China to Vietnam in the face of ongoing supply disruptions related to Covid-19 lockdowns, while Chinese electronics giant Xiaomi has just delivered its first shipments of smartphones made in Vietnam. Apple already told its suppliers last month that it seeks to expand contract manufacturing outside of China, and sees Vietnam and India as potential new production hubs. The company is also taking other steps to cushion the blow from China’s supply problems. As a preparation, Apple has reportedly notified its suppliers to start stockpiling certain components, such as printed circuit boards…
The companies announced that Apple is shifting some iPad production from China to Vietnam in the face of ongoing supply disruptions related to Covid-19 lockdowns, while Chinese electronics giant Xiaomi has just delivered its first shipments of smartphones made in Vietnam.
Apple has tell its suppliers Last month, the company sought to expand contract manufacturing outside of China, citing Vietnam and India as potential new production hubs.
The company is also taking other steps to cushion the blow from China’s supply problems. In preparation, Apple has reportedly told its suppliers to start stocking specific components, such as printed circuit boards and mechanical and electronic parts. If there are further shutdowns and disruptions at the production base near Shanghai, the inventory could be used because Apple has many contract manufacturing partners in Shanghai.
Apple said that Vietnam itself may not be expected to suffer from potential further blockades and other disruptions, but by diversifying manufacturing across multiple regions, the company is better positioned to avoid the most worrying disruptions.
Find a reliable supply chain
In the case of Xiaomi, the company is also seeking more stable supply conditions by moving some production to Vietnam.
Some models of its smartphones are produced at a factory in northern Thai Nguyen province by DBG Technology, a subsidiary of Hong Kong-based DBG Electronics Investment Limited.
A representative of Xiaomi Vietnam said that in addition to supplying the local market, the phones will also be exported to some Southeast Asian markets such as Malaysia and Thailand.
Xiaomi is currently Vietnam’s second-largest smartphone maker after Samsung, with a 20.6 percent market share in the first quarter of this year, according to industry analyst firm Counterpoint.
Otherwise, Xiaomi smartphones are mainly made in China and India by its manufacturing partners, including Foxconn, DBG Technology, BYD Electronics and Flextronics International (formerly Flextronics).
