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Apple is considering manufacturing some of its products in Indonesia, following the American technology giant's decision to increase investment in Vietnam, the Wall Street Journal (WSJ) quoted chief executive officer (CEO) Tim Cook as saying.
Cook said he met with Indonesian President Joko Widodo in Jakarta on Wednesday to discuss potential investments in Southeast Asia largest economy, WSJ reported.
At a press conference, Cook said, “We talked about the president’s desire to see manufacturing in the country, and it’s something that we will look at. I think the investment ability in Indonesia is endless.”
However, the Apple chief executive did not offer a timeline for the investment.
WSJ report stated that Cook's trip to Indonesia coincides with officials' efforts to engage other prominent figures from the US tech industry, aiming to expand the country's role in global technology supply chains.
The company does not have a manufacturing base in Indonesia, where Apple's iPhones and computers have a strong following, according to the WSJ report.
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The WSJ reported that since 2018, the company has invested in numerous developer training centres across the country, with one recently announced in Bali. While the majority of Apple's assembly operations take place in China, the company has plans to broaden its supply chain in response to escalating tensions between the US and China, as well as growing global concerns regarding trade decoupling.
In December last year, Apple announced its plans to increase iPhone production in India, a step that could elevate the South Asian nation's share to a quarter of global production in the coming years, the WSJ reported.
According to a report in the Economic Times (ET), Apple produced iPhones worth over Rs 1 trillion in India in 2023. Of this, made-in-India iPhones worth Rs 65,000 crore were exported last year.
The ET reported that the company increased its India market share to 6 per cent in FY23 from 2 per cent in FY18. During the same period, Apple's India business has jumped to Rs 49,322 crore from Rs 13,097 crore. Foxconn has been the leading manufacturer of iPhones in India, contributing 68 per cent of total production, followed by Pegatron with 18 per cent and Wistron at 14 per cent.
Recently, Apple announced its plan to increase spending on suppliers in Vietnam. In a statement, the company said, "Today, Apple announced it will increase spending on suppliers in Vietnam, along with new progress in an initiative to support clean water for local schools."
The company further said it has allocated nearly $16 billion towards its supply chain in Vietnam since 2019.
Vietnam, a hub for Apple, manufactures iPads, AirPods and Apple Watches in Vietnam, and suppliers for MacBooks are also investing in the country. As of 2022, the company had 25 suppliers in Vietnam, which include Foxconn, GoerTek, Luxshare, Intel, Samsung Electronics, and Compal. The company said that it has spent almost $16 billion through its supply chain in the country since 2019, and has created more than 200,000 jobs in Vietnam.
