Malaysia Listed As Potential Location For Apple To Move Manufacturing To

This move is done for Apple to move out of China

A news report by Nikkei has revealed that Apple is moving between 15% and 30% of its hardware production out of China, highly due to the ongoing trade war between China and the US. So far Apple is looking into Vietnam and India, but it looks like Mexico, Indonesia and (surprise, surprise) Malaysia has also been listed as a possible option to move to.

Apple has been going around asking prominent players and key suppliers like Foxconn, Pegatron, and Wistron for insight about opening a factory in another country, which is why Malaysia is currently listed as an option and not really something confirmed. 

On top of the trade wars, another reason for the move is also likely due to the US eventually enforcing a 25% tariff on all phones, notebooks, and tablets made in China which will start by the end of this month. So even if it looks like the trade war between China and the US gets resolved, Apple would still shift their production to another country.

Probably the biggest question should be why isn't production moving to the US, considering that Trump promised more jobs within its own country, but that's one question that will remain in the dark for now. As it is, shifitng production out of China will be a “painful and difficult” process, according to one supplier quoted by Nikkei. The country has a huge workforce of skilled workers, and its infrastructure is more resilient and less prone to problems like power shortages, which can have serious consequences for large manufacturers. There's no numbers on how many people will lose their jobs due to this move, but we can assume that it truly is a lot.

Moving production won’t be a quick process either. It is expected to take 18 months at a minimum, with results expected to emerge in between two to three years. So whether or not we'll be seeing Apple make its way here to Malaysia is still uncertain, but the potential is definitely there.