Apple to shift a portion of its iPad production towards Vietnam
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Apple (NASDAQ:AAPL) is shifting a portion of the production of its iPads away from China and towards Vietnam after strict COVID-19 lockdowns across China led to disruptions in AAPLâs supply chain and distribution of its products.
The geographic move illuminates Appleâs plan to diversify and expand their supply network as last year the tech giant shipped approximately 58M iPads around the world with the overwhelming majority coming from China.
In order to further safeguard against any and all supply chain issues, Apple has asked its suppliers specifically around Shanghai to bolster their inventories with printed circuit boards, mechanical and electronics parts as well as other key components used to create and distribute products efficiently.
Governmental authorities noted that Shanghai will continue to re-open up the city which is home to roughly 28M citizens at the start of June in order to support business operations that affect the worldwide economy.
Apple price action: AAPL is -0.1% in premarket trading and -18.2% year-to-date. Additionally, AAPL is +288.6% over a longer 5-year time horizon.
Wedbush Securities stated that Apple is likely to be one of the main beneficiaries as supply chain issues started to see an improvement in Asia over the past week.