Apple seeks to move iPad production out of China and into Vietnam
Eventually, when the U.S. and China signed Phase 1 of their trade deal on February 14th of this year, all upcoming tariffs on smartphones (including the iPhone) were suspended. But that hasn’t stopped Apple from seeking to move production of some of its devices out of China. Last May, we told you that Apple was reportedly in talks with the Indian government about moving 20% of iPhone production out of China and into India where Apple already produces some iPhone models in order to avoid (quite ironically) an import tax on handsets shipped into India. One person familiar with Apple’s plans said, “The move was requested by Apple. It wants to diversify production following the trade war.” Foxconn responded by saying, “As a matter of company policy, and for reasons of commercial sensitivity, we do not comment on any aspect of our work for any customer or their products.”
Taipei-based research firm TrendForce notes that all iPads have been made in China to date. Foxconn is believed to be building assembly lines for Apple’s iPad tablet and MacBook laptop at a facility in Vietnam’s northeastern Bac Giang province. The factory will open during the first half of next year. According to one of Reuter’s sources who spoke with the news agency last July, Foxconn is planning to spend up to $1 billion to expand an iPhone assembly plant in India. This move was “strongly requested” by Apple to again, diversify production out of China. Foxconn rival Pegatron is said to be examining the possibility of opening facilities in Mexico for the production of Apple products. Other companies assembling iPads include Taiwan’s Compal Electronics Inc and China’s BYD Electronic International Co Ltd.