Apple is investigating the move from 15 to 30% of its production capacity in China: Nikkei

(Reuters) – Apple Inc has asked its major suppliers to assess the impact on the cost of moving to 15%-30% of their production out of China to South-east Asia, as it prepares for a restructuring of the supply chain, according to a Nikkei Asian report on Wednesday.

FILE PHOTO: A woman looks at the screen of her mobile phone in front of an Apple logo outside its store in Shanghai, China-July 30, 2017. REUTERS/Aly Song

Apple’s request was made as a result of the comprehensive Sino-U.S. trade dispute, but a business resolution that will not result in a change in the judgment of the company, the Nikkei said under the listing of multiple resources.

The iPhone-maker has decided that the risks of depending heavily on the level of production in China is large and growing, it said.

Key and iPhone, technicians, Foxconn, Pegatron Corp., Wistron Corp., a major MacBook maker Quanta Computer, Inc., as the iPad maker Compal Electronics, Inc., and the AirPods makers, Inventec Corp., Luxshare-ICT, and Goertek have been asked to evaluate options outside of China, the Nikkei reported.

The countries can be considered to be, among others, Mexico, India, Vietnam, cambodia, malaysia, Indonesia, and Malaysia. India and Vietnam are among the favorites for android smartphones, Nikkei said, citing sources who did not want to be identified as the discussions are private.

Just last week, Foxconn said that it will have sufficient capacity outside of China in order to meet Apple’s demand in the U.s. market, the company is required to make the production lines, such as the AMERICAN President, when He threatened to blow another $300 billion worth of tariffs on Chinese goods.

China is an important market for Apple as well as a major manufacturing center for appliances.

A group of more than 30 of the company’s expenses, studies, team, negotiation of production plans with suppliers and the government about the monetary incentives that can be offered to attract Apple’s manufacturing, the report said.

A deadline has not been set up for the supplier to complete on their company, Nikkei said, adding that it would take at least 18 months in order to start the production, once you have selected a location.

Apple and Foxconn did not immediately respond to a request for comment on the report.

Reporting Sathvik S in Bengaluru; Additional reporting by Aishwarya Nair; editing by Gopakumar Warrier and Rashmi Aich

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