Battered by Xi Jinping’s anti-Covid policy, Apple is looking to boost production outside China, reports said, adding that India and Vietnam are being seriously looked at for potential alternatives.

Over 90 per cent of Apple products like iPhones, iPads and MacBook laptops are manufactured in China by outside contractors.

With Apple’s being exposed to potential manufacturing snags due to China’s zero-Covid police, the tech behemoth is already in talks with some of its contract manufacturers to look for alternatives, the Wall Street Journal reported citing people involved in the discussion.

Nikkei Asia reported that the lockdowns in Shanghai and Kunshan have forced Apple to halt production at three suppliers, which could have a much more significant impact – especially the Pegatron shutdown.

Pegatron, which roughly makes 20 to 30 per cent of all iPhones, had said in April that operations at its two production sites in Shanghai and Kunshan have been suspended to comply with government regulations.

Similarly, MacBook maker Quanta and iPad assembler Compal are the two other suppliers who also had to shut to comply with the Covid guidelines.

In Shanghai, 31&nbsp;companies&nbsp;run production facilities that supply to Apple.

Moreover, the Shanghai lockdown made a huge dent in Apple’s revenue for the April-June quarter as the company has indicated up to $8 billion loss in sales.

Also read |&nbsp;<a href="https://www.wionews.com/world/apple-products-to-get-delayed-as-foxconn-stops-ops-amidst-chinas-worst-covid-outbreak-462120">Apple products to get delayed as Foxconn stops ops amidst China’s worst Covid outbreak</a>

Apple CEO Tim Cook said in an earnings call that "we have estimated the constraints to be in the range of $4 to $8 billion and these constraints are primarily centred around the Shanghai&nbsp;corridor".

Also read |&nbsp;<a href="https://www.wionews.com/world/apple-sees-bigger-supply-problems-after-strong-start-to-year-474828">Apple sees bigger supply problems after strong start to year</a>

"The Covid-related disruptions are also having some impact on customer demand in China," added Apple CFO Luca Maestri.

So far, Apple's biggest supplier Foxconn has kept production going at its biggest iPhone-assembly plant in the Chinese city of Zhengzhou.

(With inputs from agencies)

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Battered by Xi Jinping’s anti-Covid policy, Apple is looking to boost production outside China, reports said, adding that India and Vietnam are being seriously looked at for potential alternatives.

Battered by Xi Jinping’s anti-Covid policy, Apple is looking to boost production outside China, reports said, adding that India and Vietnam are being seriously looked at for potential alternatives. Over 90 per cent of Apple products like iPhones, iPads and MacBook laptops are manufactured in China by outside contractors. With Apple’s being exposed to potential manufacturing snags due to China’s zero-Covid police, the tech behemoth is already in talks with some of its contract manufacturers to look for alternatives, the Wall Street Journal reported citing people involved in the discussion. Nikkei Asia reported that the lockdowns in Shanghai and Kunshan have forced Apple to halt production at three suppliers, which could have a much more significant impact – especially the Pegatron shutdown. Pegatron, which roughly makes 20 to 30 per cent of all iPhones, had said in April that operations at its two production sites in Shanghai and Kunshan have been suspended to comply with government regulations. Similarly, MacBook maker Quanta and iPad assembler Compal are the two other suppliers who also had to shut to comply with the Covid guidelines. In Shanghai, 31 companies run production facilities that supply to Apple. Moreover, the Shanghai lockdown made a huge dent in Apple’s revenue for the April-June quarter as the company has indicated up to $8 billion loss in sales. Also read | Apple products to get delayed as Foxconn stops ops amidst China’s worst Covid outbreak Apple CEO Tim Cook said in an earnings call that "we have estimated the constraints to be in the range of $4 to $8 billion and these constraints are primarily centred around the Shanghai corridor". Also read | Apple sees bigger supply problems after strong start to year "The Covid-related disruptions are also having some impact on customer demand in China," added Apple CFO Luca Maestri. So far, Apple's biggest supplier Foxconn has kept production going at its biggest iPhone-assembly plant in the Chinese city of Zhengzhou. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Apple looks to boost production outside China; India, Vietnam emerging viable alternatives: Report

Tech behemoth Apple's is weighing to shift majority of its&nbsp;manufacturing from China to India.

The iPhone maker is considering producing up to $40 billion worth of smartphones over the next five years through manufacturers Wistron and Foxconn, as per&nbsp;a government official. This is a fifth of its production capacity&nbsp;and can aid India's recovery.

The company is looking&nbsp;to take advantage of the country's improved policy regime.

The Indian government introduced a production-linked incentive scheme last month. A&nbsp;move aimed at encouraging electronics manufacturers to set shop on Indian soil.

This came after PM&nbsp;Modi met global phone-makers, including Apple&nbsp;in December last year.

Apple is likely to be one of the first to make the definitive move. The tech giant&nbsp;produces only a couple of models of the iPhone in India as of now.

These include the iPhone 7 and iPhone XR, which are made by contract manufacturers Foxconn and Wistron.

Apple's manufacturing in India is worth only half a billion dollars at the moment. However, that could all change the near future because Apple wants to scale up its production capacities in the country dramatically.

It is looking to use India as a base to manufacture smartphones that will be exported worldwide.

Apple has plans of exporting India-made products worth 40 billion dollars in the next five&nbsp;years. If the company is able to manage that then it would become India's largest exporter.

The company also keen on establishing a retail base in India. Its sales in India has grown to around 1.5 billion dollars.

The premium smartphone segment in India is dominated by iPhones with over 60 per cent&nbsp;marketshare.

However, there are&nbsp;Apple stores in India. Its&nbsp;products are sold only through authorised re-sellers.&nbsp;This can&nbsp;change in the next year. Apple has been enticed by India's policy relaxation.

India had eased local sourcing norms for foreign retailers late last year. Apple had thanked the Indian government then and said it looked forward to the company's first&nbsp;Indian&nbsp;store.

In February this year, Apple's CEO&nbsp;Tim Cook confirmed that retail operations in India will begin in 2021.

India is the next big focus for Apple in both&nbsp;manufacturing and&nbsp;marketing.

China's loss is seemingly India's gain. 
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Tech behemoth Apple's is weighing to shift majority of its manufacturing from China to India. The iPhone maker is considering producing up to $40 billion worth of smartphones over the next five years through manufacturers Wistron and Foxconn, as per a government official.

Tech behemoth Apple's is weighing to shift majority of its manufacturing from China to India. The iPhone maker is considering producing up to $40 billion worth of smartphones over the next five years through manufacturers Wistron and Foxconn, as per a government official. This is a fifth of its production capacity and can aid India's recovery. The company is looking to take advantage of the country's improved policy regime. The Indian government introduced a production-linked incentive scheme last month. A move aimed at encouraging electronics manufacturers to set shop on Indian soil. This came after PM Modi met global phone-makers, including Apple in December last year. Apple is likely to be one of the first to make the definitive move. The tech giant produces only a couple of models of the iPhone in India as of now. These include the iPhone 7 and iPhone XR, which are made by contract manufacturers Foxconn and Wistron. Apple's manufacturing in India is worth only half a billion dollars at the moment. However, that could all change the near future because Apple wants to scale up its production capacities in the country dramatically. It is looking to use India as a base to manufacture smartphones that will be exported worldwide. Apple has plans of exporting India-made products worth 40 billion dollars in the next five years. If the company is able to manage that then it would become India's largest exporter. The company also keen on establishing a retail base in India. Its sales in India has grown to around 1.5 billion dollars. The premium smartphone segment in India is dominated by iPhones with over 60 per cent marketshare. However, there are Apple stores in India. Its products are sold only through authorised re-sellers. This can change in the next year. Apple has been enticed by India's policy relaxation. India had eased local sourcing norms for foreign retailers late last year. Apple had thanked the Indian government then and said it looked forward to the company's first Indian store. In February this year, Apple's CEO Tim Cook confirmed that retail operations in India will begin in 2021. India is the next big focus for Apple in both manufacturing and marketing. China's loss is seemingly India's gain.

As Apple eyes shift to India from China, smartphone manufacturing to get major boost

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Apple looks to boost production outside China; India, Vietnam emerging viable alternatives: Report

As Apple eyes shift to India from China, smartphone manufacturing to get major boost