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Apple Reportedly Shifting more Product Orders away from Taiwan to China's Supply Chain to tighten production costs

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Taiwan-based handset supply chain makers are reporting that Apple has deepened its cooperation with China-based supply chain makers for not only ramping up its shipments to China but also to further reduce its overheads.


The cooperation is likely to cover a number of new iPhone models and other devices to be released in the future, said the sources without going into details, reports Digitimes.


By leveraging the supply chain in China, Apple also aims to tighten its control over production costs through volume purchases, added the sources.


Apple is expected to ramp up the production of AirPods Pro at China-based production partner Luxshare-ICT, which is also likely land orders for Apple Watch later, said the sources.


Profit derived from global handset sales decline 11% on year to US$12 billion in the third quarter of 2019, with Apple accounting for 66% of the total earnings, according to Counterpoint.


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