American multinational technology company, Apple Inc. has disclosed its plans to move parts of its production out of China.
It explained that the decision became imperative following the recent violent protest against the coronavirus policy, which it claimed, disrupted the company’s production and delivery plans.
Despite the company’s Chief Executive Officer, Tim Cook, eyeing Vietnam and India as new hubs, the tech giant maintained that it is relocating its manufacturing operations outside of Zhengzhou, China, where iPhone City is located.
COVID-19 protests and wage disputes have broken out in the city, which employs up to 300,000 workers, leaving Apple’s busiest time of year in shambles with production and delivery delays, Daily Mail UK reports.
Consumers are facing the longest wait times in the iPhone’s 15-year history, with estimated ship dates being after Christmas, WSJ said. In addition, Apple’s fourth quarter productions are around 10 million less than expected, with iPhone Pro and Pro Max being hit the hardest.
In November, the company issued a notice that iPhone backups could happen due to the health restrictions in Zhengzhou.
It is now eyeing India and Vietnam to reduce its dependency on Taiwanese-based assemblers led by Foxconn Technology Group.
