Apple producer Pegatron is reportedly set to start mounting MacBooks and iPads in Indonesia, starting next month.
The news comes at a time when more and more are concerned about a growing trade war between the United States and China. Because a large number of Apple products are produced in China, the possibility of new import tariffs may adversely affect the company.
Pegatron will begin installing Apple's MacBook and iPad devices using a local Batam manufacturer. Batam is the largest city in the province of Riau Islands, Indonesia. Abidin Hasibuan, CEO of the manufacturer PT Sat Nusapersada, did not confirm or deny reports.
It doesn't sound like this partnership will necessarily be permanent, though. Pegatron has reportedly invested $ 300 million to redeem two plans in Indonesia. It originally considered investing in factories in Vietnam. But it chose Batam because of unemployment.
Other manufacturers do the same
Pegatron is not the only Apple manufacturer to look longer than China. For example, Foxconn has begun to produce specific iPhone models in India.
Analysts have suggested that problems in China may result in a 30% decline in earnings for Apple. With such challenges, it is no wonder that suppliers will look to embrace new production markets as quickly as possible.