Apple prepares to turn its back on China

According to the Nikkei, Apple has asked its supply chain to cost a move of 15-30% of its China production to other Asian countries. Apple has declined to comment.

Although the immediate catalyst for the move is the trade war, the Nikkei reports several people saying Apple has been worried about its over-reliance in China for some time, which suggests that the moves, once made, will be permanent – not just till the trade war gets fixed.

Among suppliers reported to have been approached during the evaluation are: Foxconn, Pegatron, Wistron, Quanta Computer, Compal Electronics, Inventec, Luxshare-ICT and Goertek

90% of iPhones are manufactured in China and five million jobs in China rely on Apple.

Among the countries being considered as candidates to take the production are: Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam.

Apple is said to be talking to the governments of those countries about incentives.

It is said that it will take 18 months to set up early production in a new country once the decision has been taken to move there.