In the midst of Apple’s production shipment from China to its neighboring countries such as India, Bangladesh and Vietnam, certainly, there would be difficulties and hardships that the tech giant has to face and deal with. According to Financial Times, the production operations in India are performing below expectations.
Apple has been in close ties with Taiwanese manufacturer Foxconn as well as many tech companies such as Blackberry, Sony or Google. However, the infamous Zero-Covid policy in Mainland China has affected the production on so many levels. First of all, major cities in China have banned free transportation which means that the supply chain is heavily influenced. The material source is in shortage, resulting in the decrease of output products. This is one of the major factors that Apple and Foxconn have been dealing with. Moreover, the longer the lockdown, the tougher employees’ lives get. They have been protesting against Foxconn to get basic supplies such as food and medicine. On top of that, they might not travel freely therefore it is impossible for them to visit their family. Their physical and mental health aren’t in the best condition. It’s also important to note that Foxconn factories are among the most stressful working places in the entire world that might burn their employees out quickly.
Even though the production remains in China for the largest scale, Apple has steadily moved to other countries as well. With a population of over $1 billion, India is the perfect destination. However, the skills and quality of workers are also important. Poor component yields and slow progress are among the things demanded for a solution. Reportedly, only one out of two iPhone casings made at Apple supplier Tata’s factory in Hosur is qualified to be sent to Foxconn to assembly. Moreover, compared to skillful and experienced Chinese suppliers, India suppliers obviously need to step up the game to meet the standards of one of the most high-demanding tech companies.
The company’s long-term plan is to diversify its global supply chain therefore it is less reliant on the Chinese workforces and resources. Previously, the iPhone maker started the production of the iPhone SE in India in 2017. Since last year, it has been sending several engineers from China and California to Southern India to support the locals with the manufacturing. So, it is nothing strange that the progress is going to take a lot of time and effort. Alongside India, several factories in Malaysia and Vietnam are being set up to produce a larger output including the new rumored MacBook for the global market. For more updated news, stay tune on our website.