India and Vietnam, which are already sites of Apple production, are among the countries short-listed by the company as alternatives, the report added.
Apple last month forecast bigger supply problems as COVID-19 lockdowns slowed production and demand in China.
The report said that Apple is citing China's strict anti-Covid policy and other reasons for its decision.
Apple declined to comment to WSJ and couldn't be immediately reached by Reuters on Saturday.
(Reporting by Nishit Jogi in Bengaluru, Editing by Franklin Paul)