As the Chinese lockdown caused trouble for Apple Inc (NASDAQ:AAPL), the tech giant is now reportedly mulling moving some of its iPad production out of the country.
What Happened: Apple is eyeing Vietnam as a destination for the production of some of its iPad. This would be for the first time ever that the tech giant will be producing iPads out of China, according to a Nikkei Asia report.
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Nikkei Asia sources revealed that Tim Cook-led company has also asked multiple component suppliers to build up their inventories to guard against shortages and supply snags caused by the pent-up demand.
Apple's iPad will become the second major line of premium products made in the Southeast Asian country, following the AirPods earbud series. The report pointed out that Apple's leading iPad assembler, China's BYD Electronics, has helped Apple build production lines in Vietnam — and the company could soon start producing a small number of the iconic tablets.
Why It Matters: The move comes weeks after Vietnamese Prime Minister Pham Minh Chinh made a visit to Silicon Valley tech giants, including Apple. Chinh reportedly met CEO Cook to woo him to set up a manufacturing unit in Vietnam.
Apple shipped 58 million iPads last year.
Price Action: According to data from Benzinga Pro, Apple's shares closed marginally lower at $148 apiece on Wednesday.
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