Apple Turns To Chinese Companies For AirPods Pro Supply
Apple AirPods Pro gets a warm reception during its launch, and stocks are now running dry. Apple earlier said that the arrival of the next batch of the premium noise-canceling earbuds would be after December 25. A recent report from Nikkei Asian Review reveals that the Cupertino tech giant has asked one of its Chinese suppliers Luxshare-ICT to increase its production of AirPods Pro to 2 million units every month to meet the mounting demand.
Moreover, Apple reportedly called another Chinese company GoerTek to increase the production of the more affordable version of the Apple AirPod at its plant in Vietnam. This recent development is symbolic of Apple’s continued dependence on Chinese companies even as it lobbies at the White House for tariff relief. Additionally, it highlights the swift and agile decision-making prowess of Chinese firms to counter the swelling pressure coming from the US.
Chinese companies are more aggressive compared to Taiwanese or Japanese companies in terms of production diversification, Apple Insider reports. While some US companies are still evaluating and studying whether to have a factory in Vietnam, other Chinese companies are already a step ahead and making that decision. It is worth noting that Apple has become increasingly reliant on companies with facilities in Vietnam to serve as its production shield due to the imposition of the US tariffs.
However, Apple’s dependence on these smaller Chinese chain partners does not go well with its more prominent suppliers, says wccftech. This includes Quanta Computer, Inventec, and Taiwan’s Foxconn. This also underlines the growing power of general Chinese manufacturing companies.
Meanwhile, the Apple AirPods Pro now constitutes the fastest-growing source of revenue of the Cupertino tech behemoth while forming a crucial barrier in the middle of the stagnating iPhone sales. Apple launched the wireless noise-canceling earbuds in Oct. 2019 and is now selling like hotcakes. Its water resistance and significant features like noise cancellation that comes at a $249 retail price attract a lot of consumers searching for nifty earbuds for their specific needs.
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