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For decades Apple counted China as its most important assembly base, but that winning formula reached a crisis point this year. In the spring, key MacBook and iPhone production sites in Shanghai faced massive disruptions due to a monthslong COVID lockdown. In November, Apple warned of delays in deliveries of its premium iPhone 14 Pro and 14 Pro Max for the holiday season, citing pandemic-related labor shortages at its most important production base in Zhengzhou, Henan province.

Chiu Shih-fang, a supply chain analyst with the Taiwan Institute of Economic Research, says the changes to the tech supply chain are irreversible.

"In the past, most people in the industry always hoped that the situation could ease and things could go back to the good old days," Chiu told Nikkei Asia. "But this time, they realize there is no way of turning back and no matter what they need to prepare alternatives beyond China."

China's strict COVID policies have accelerated the shift, and it is now happening faster than industry executives and market analysts thought a few years ago, Chiu said, adding that intensifying U.S.-China tensions were also playing a role.

"No one wants their businesses to be trapped and hit badly just because their production is too concentrated in one place. From big to small, suppliers now need to have some solutions for facing this new global reality."

Apple's diversification to Vietnam started with AirPods, which went into mass production there in 2020. The company also shifted some iPads and Apple Watch production to the Southeast Asian country this year, Nikkei Asia first reported, and in October it announced it had started producing the iPhone 14 in India, only a few weeks after the release of the latest flagship phone.

Sources have told Nikkei Asia that Apple aims to significantly increase iPhone output from India this year and next, with the aim of turning the country into another key production base for the devices. Apple also aims to move some AirPods and Beats earphone production to India, Nikkei Asia earlier reported.

Apple did not respond to Nikkei Asia's request for comment. Foxconn declined to comment.