Pegatron could start making iPads & MacBooks in Indonesia as early as June

Posted:
in iPad
One of Apple's major assembly partners, Pegatron, will start Indonesian manufacturing of iPads and MacBooks in June, regional reports claim.

2018 iPad Pro


The company will actually subcontract work to Batam's PT Sat Nusapersada, said DetikInet, quoted by Taiwan's DigiTimes. PT's CEO, Abidin Hasibuan, didn't deny a June production run, but also didn't specify a client, saying only that products would ship to the U.S.

Pegatron is known to have recently formed a partnership with PT. It's also spending $300 million on refurbishing two plants in Indonesia, but the purpose of that hasn't been established.

Reports of Pegatron coming to Indonesia, and Batam Island specifically, first emerged in December. At the time it was claimed that it would take two quarters for Pegatron to install and certify equipment, which would be consistent with a June start date.

Such a move is presumably to mitigate the threat of more U.S. tariffs on China from the Trump administration. While Apple has been relatively unscathed so far, new tariffs could hit as soon as June, eating into profits on core products like iPhones, iPads, and Macs. Most of the company's supply chain is Chinese.

Some analysts have suggested that Apple is more likely to absorb the blow rather than raise prices. The company is already under fire for the high cost of recent products like the iPhone XS, and in fact has had to cut iPhone prices in markets like China to boost weak sales.

Comments

  • Reply 1 of 13
    jkichlinejkichline Posts: 1,336member
    Let this be an A-Series powered MacBook!
  • Reply 2 of 13
    mdriftmeyermdriftmeyer Posts: 7,317member
    jkichline said:
    Let this be an A-Series powered MacBook!
    Let's not and say we never did.
    Roger_Fingasmwhitelkrupppscooter63bigtds
  • Reply 3 of 13
    jmey267jmey267 Posts: 53member
    Good, China is playing a game of chicken that they will loose. Manufactures will leave their country and they depend on the US for so much of their exports this is a loose loose situation for them.
    gutengelracerhomie3bigtds
  • Reply 4 of 13
    gutengelgutengel Posts: 338member
    Decentralised manufacturing is a great thing
    bigtds
  • Reply 5 of 13
    maestro64maestro64 Posts: 4,673member
    jmey267 said:
    Good, China is playing a game of chicken that they will loose. Manufactures will leave their country and they depend on the US for so much of their exports this is a loose loose situation for them.
    As I said before, US companies are really good at moving their production around the world. Apple may absorb so of tariff, but if this is true, they will more to next best cost country. The only question, do these other place have the infrastructure to support manufacturing the likes of Apple. 

    China has to weight if Apple leaves most likely they may not come back, especially for non China market products since you can not sell no Chinese made products without high duties places on them.
    racerhomie3
  • Reply 6 of 13
    crfcomcrfcom Posts: 14member
    maestro64 said:
    jmey267 said:
    Good, China is playing a game of chicken that they will loose. Manufactures will leave their country and they depend on the US for so much of their exports this is a loose loose situation for them.
    As I said before, US companies are really good at moving their production around the world. Apple may absorb so of tariff, but if this is true, they will more to next best cost country. The only question, do these other place have the infrastructure to support manufacturing the likes of Apple. 

    China has to weight if Apple leaves most likely they may not come back, especially for non China market products since you can not sell no Chinese made products without high duties places on them.
    Tim Cook likes to talk a lot about how lessons learned from mistakes make us better. This is probably one of those situations, and there would be no reason for China to expect the jobs that leave to ever return. Apple will have learned to divided their eggs into more baskets.
  • Reply 7 of 13
    tzeshantzeshan Posts: 2,043member
    maestro64 said:
    jmey267 said:
    Good, China is playing a game of chicken that they will loose. Manufactures will leave their country and they depend on the US for so much of their exports this is a loose loose situation for them.
    As I said before, US companies are really good at moving their production around the world. Apple may absorb so of tariff, but if this is true, they will more to next best cost country. The only question, do these other place have the infrastructure to support manufacturing the likes of Apple. 

    China has to weight if Apple leaves most likely they may not come back, especially for non China market products since you can not sell no Chinese made products without high duties places on them.
    Your knowledge about Apple is really poor. This thing has little to do with Tim Cook. Apple contracted out manufacturing to Pegatron. Please try to understand what is contract manufacturing before comment again. 
  • Reply 8 of 13
    techsavytechsavy Posts: 34member
    Hopefully Apples does absorb the cost of this move since raising the price on their new phones seems a bit ludicrous. 
  • Reply 9 of 13
    mknelsonmknelson Posts: 368member
    maestro64 said: As I said before, US companies are really good at moving their production around the world. Apple may absorb so of tariff, but if this is true, they will more to next best cost country. The only question, do these other place have the infrastructure to support manufacturing the likes of Apple. 
    Indonesia is pretty convenient to most of south-east Asia, close to a lot of raw material sources. Good ports, good airports. Spitting distance from Australia… Large population.
  • Reply 10 of 13
    smsmsmsm Posts: 8member
    Thank God. Finally I will be able to buy a new Mac. I have a no Chinese policy in place do to China’s human rights violations. Not sure if Indonesia is much better but at least they are getting out of Chinese production. My 2006 Mac Pro is getting a little old. I just wish Apple’s excuse for the move was human rights instead of them worried about Trump tariffs hurting their bottom line. Too bad Apple still doesn’t get that they have to care about where their money is spent that may contribute to human rights abuses.
  • Reply 11 of 13
    1st1st Posts: 394member
    Indonesia for Asia, Mexico for NA, which MFG used for EU? 
  • Reply 12 of 13
    1st said:
    Indonesia for Asia, Mexico for NA, which MFG used for EU? 
    And where does India fit in?
  • Reply 13 of 13
    kevin keekevin kee Posts: 1,136member
    1st said:
    Indonesia for Asia, Mexico for NA, which MFG used for EU? 
    And where does India fit in?
    India is part of Asia, is it not?

    Indonesia has a better location and resources: materials and workers. It is also just in between Australia and the rest of Asia and in the middle of Indian and Pacific ocean. In terms of human resources, it is no 4 largest population after USA. Logistic should be easier and the wages are still slightly lower than China.
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