Apple suppliers expand production outside of China


The contract manufacturer of gadgets, Pegatron, which accounts for about 30% of Apple's orders, expands production outside of China. The company will open offices in Indonesia, Vietnam and India. Pegatron president reports that the pace of production expansion will depend on the outcome of the trade war with the United States. Expansion of the company outside the country may be due to the decision of Apple to open production in India. The Chinese smartphone market has been falling, so companies are paying attention to other markets. Another supplier of gadgets for Apple, Foxconn, has already planned to expand its presence in India. Moving of production to another country will allow companies to reduce their dependence on China and reduce the impact of trade war on business. A contractor, which manufactures phones for Xiaomi, is already working in India. Apple already owns factories in India, where the company used to produce only low-cost iPhone SE and 6S models.

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