For the past few years, Apple has branched out from China, moving some of its production to other regions like India and Vietnam. Currently, iPads and Airpods are manufactured in Vietnam. While this is a big deal for the country, it looks like the relationship could get deeper. Recently, Apple has had talks with Vietnam, as it might have it manufacture the firm’s Apple Watches and MacBooks.
Although China handles most of Apple’s products, the company has begun shifting its manufacturing to other regions. There are several reasons for this, more recently being COVID-related lockdowns and supply chain issues. While things have yet to be set in stone, Luxshare Precision Industry and Foxconn in Vietnam have started test production of the Apple Watch. It is a highly sophisticated product, with lots of technology crammed into an extremely small space. Because of this, it requires a lot of skill to produce, especially when it is being created by the millions.
According to the source, the shift for MacBook production is taking a little longer, as Apple has run into hiccups trying to set up a production line in Vietnam. These disruptions have reportedly been due to a number of variables, with some being related to the pandemic. While things could easily escalate in Vietnam, one concern is how it will keep things competitive with China in terms of cost. In addition to Apple Watches and MacBooks, it appears that Apple will also test the production of its HomePod speaker in Vietnam as well.
The company first branched out from China with the production of its iPhone in India back in 2017. While the initial order was for the iPhone SE, things accelerated, with Apple also shifting production of the iPhone 11 and iPhone 12 to India. Now, the country also manufactures the iPhone 13, and there were even recent reports that it could take on the production of the iPhone 14. Vietnam has manufactured the Apple Airpods since 2020 and now produces iPads as well. These types of expansions can be big, not only for Apple but also for the countries involved, so it will be interesting to see how things move forward in Vietnam, India, and also China.
Source: Nikkei Asia
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