Key Points:
- Apple CEO Tim Cook expresses openness to exploring manufacturing opportunities in Indonesia during a meeting with President Joko Widodo.
- The discussion follows Apple’s ongoing efforts to diversify its supply chain away from China in response to disruptions caused by the COVID-19 pandemic.
- Cook acknowledges Indonesia’s potential for investment and reaffirms Apple’s belief in the country as a promising market.
- Apple has been expanding its manufacturing presence in other countries, with Vietnam emerging as a significant manufacturing hub for Apple products.
Apple CEO Tim Cook expressed openness to exploring manufacturing opportunities in Indonesia following a meeting with President Joko Widodo. Cook’s remarks come as Apple continues its efforts to diversify its supply chain away from China, a strategy accelerated in response to disruptions caused by the COVID-19 pandemic.
During the meeting with President Widodo, Cook acknowledged the president’s interest in attracting manufacturing investments to Indonesia and stated that Apple would consider the possibility. He emphasized the country’s vast potential for investment and reaffirmed Apple’s belief in Indonesia as a promising market.
In recent years, Apple has been actively seeking to reduce its dependence on China for manufacturing, recognizing the need for greater resilience in its supply chain. The COVID-19 pandemic highlighted vulnerabilities in Apple’s production processes, particularly disruptions at its main iPhone factory in China, which Foxconn operates.
Apple has been expanding its manufacturing presence in other countries as part of its diversification efforts. Vietnam has emerged as a significant manufacturing hub for Apple, hosting production facilities for products such as the MacBook, iPad, and Apple Watch. Cook’s visit to Vietnam earlier in the week underscores its commitment to its regional manufacturing operations.
In addition to Vietnam, Apple has been ramping up its manufacturing activities in India. The company now produces approximately 14% of its iPhones in India, doubling the amount compared to the previous year. This expansion reflects Apple’s strategic efforts to leverage India’s growing market and favorable manufacturing ecosystem.
Cook’s discussions with President Widodo signal Apple’s interest in exploring Indonesia as a potential manufacturing location. The move aligns with Apple’s broader strategy of diversifying its manufacturing base to mitigate risks and enhance flexibility in its supply chain operations.
