A new supply chain report reveals how Apple is splitting production of its products in Taiwan, India, Vietnam, the U.S. and China. In the wake of the US-China trade tensions, Apple is now seeking more Chinese suppliers to satisfy China's domestic demand, while for non-China markets, Apple will rely more on Taiwanese makers to help it establish production sites outside of China.
In China, Apple has chosen Luxshare Precision Industry as a secondary supplier for the Apple Watch Series 6, while BYD is among the suppliers for the new Wi-Fi iPad series, according to industry sources.
In Taiwan, The Foxconn Technology Group (Hon Hai Precision Industry) and Compal Electronics have been chosen as the main suppliers for the new Apple Watch and iPads.
Compal expects its non-PC product shipments to significantly in the second half of 2020 with volumes to outperform those in the first half of the year. Compal's goal is to have 35% of its revenues coming from products such as the iPad which has had its demand increase due to stay-at-home activities.
In India, Foxconn, Wistron and Pegatron are set to manufacture iPhones locally to mainly cater to domestic demand.
In Vietnam, Compal, Foxconn, Pegatron and Inventec have plants manufacturing iPads, AirPods and iPhones at the moment.
In the U.S., Apple is currently having Quanta and Foxconn manufacture Mac series products in the US.