Ever since the US government banned Huawei and set off the trade war with China, Chinese authorities are actually considering making their own entity list which includes Apple, Dell and HP in retaliation for their actions. With this, there's a new report from Nikkei Asian Review that Apple is looking into moving 15%-30% of their production out of China to Southeast Asia, such as Malaysia.
Besides Malaysia, other countries that are also in consideration include our neighbouring country Indonesia, Vietnam, India, and Mexico. Among these countries, India and Vietnam are the favourites which makes sense, given with their much lower currency and the amount of labour workforce. This is not just for Apple's iPhone key suppliers such as Foxconn, but as well as its Macbook and AirPods suppliers to evaluate options out of China.
"We believe this is all a poker game and Apple will not diversify production out of China overnight and certainly a long-term US/China trade deal is key for Cook & Co to sleep well at night," Wedbush analysts said, and it would probably take 12 - 18 months to move just 5%-7% iPhone supplies to India as the best-case scenario.
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