According to a report from the supply chain, Apple is increasing Chinese production of both the Apple Watch Series 6 and one of the newly introduced iPads.
It might seem like a strange move at a time when the Cupertino company has been trying to reduce its reliance on Chinese manufacturing, but there is a simple explanation behind the increase.
The Digitimes report says Chinese manufacturing will only affect devices sold within the country. In the wake of trade tensions between the US and China, Apple is now looking for more Chinese suppliers to meet domestic demand, while for markets outside China, Apple will rely more on Taiwanese manufacturers.
Apple is currently getting Quanta and Foxconn to produce Mac series products in the United States. In India, Foxconn, Wistron, and Pegatron will produce iPhones locally to primarily meet domestic demand. In Vietnam, Compal, Foxconn, Pegatron, and Inventec have factories that produce iPads, AirPods, and iPhones at the moment.
Luxshare and BYD are both expected to see an increase in their respective Apple orders. Notably, Luxshare Precision Industry is a secondary supplier for the Apple Watch Series 6, while BYD is among the suppliers for the new iPad Wi-Fi series, according to industry sources.
Foxconn Technology Group (Hon Hai Precision Industry) and Compal Electronics are the main suppliers for the new Apple Watch and iPad at the moment, but according to the production quality, pricing, and the extent of cooperation of Chinese manufacturers, many orders will be moved on Luxshare and BYD.
Recall that the Apple Watch Series 6 launched this week with a pulse oximeter to measure O2 saturation, as well as a brighter always-on display, a faster chip, an always-on altimeter and additional color options.