Apple’s Tim Cook Charts Course for Manufacturing in Indonesia, Redefining Supply Chain Footprint

Apple’s CEO, Tim Cook, disclosed plans to explore manufacturing in Indonesia during his meeting with Indonesian President Joko Widodo. 

This strategic move aims to diversify Apple’s supply chain away from China, where its main production currently resides, reducing dependency and mitigating disruptions like those caused by COVID-19 shutdowns. 

Cook emphasized the vast investment potential in Indonesia, highlighting the country’s attractiveness for Apple’s expansion efforts. 

Prior to meeting the Indonesian President, Cook met Vietnamese Prime Minister Pham Minh Chinh in Hanoi, where he said Apple plans to invest more in Vietnam and increase spending on suppliers in the Southeast Asian manufacturing hub.

It is to be noted that Apple has already been shifting supply chains from China to India.

Currently, India’s contribution to iPhone manufacturing stands at 14%, compared to 41% in China. However, experts believe that this figure could increase to over 20%.

The shift towards Indonesia after its recent investments in Vietnam and most recently in India indicates Apple’s strategy to decentralize manufacturing operations across Southeast Asia. 

Apple’s move to invest in Indonesia will also align with the company’s ambition to boost economic growth through manufacturing, leveraging its abundant resources, such as nickel. 

As Apple continues to seek alternatives to China for manufacturing, this development underscores the evolving landscape of global supply chains.

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