Over the past few years, Apple has branched out from China, moving some of its production to other regions such as India and Vietnam. Currently, iPads and Airpods are made in Vietnam. While this is a big deal for the country, it looks like the relationship could deepen. Recently, Apple held talks with Vietnam, where it could have it make the company’s Apple Watch and MacBooks.
Although China handles most of Apple’s products, the company has begun to shift its manufacturing to other regions. There are several reasons for this, in recent times it has been COVID-related shutdowns and supply chain issues. While things are yet to be decided, Luxshare Precision Industry and Foxconn in Vietnam have begun testing Apple Watch production. It’s a very high-end product, with a lot of technology crammed into a very small space. For this reason, its production requires a lot of skill, especially when it is created by millions.
According to the source, the shift in MacBook production is taking a little longer, as Apple has run into hurdles trying to set up a production line in Vietnam. Reportedly, these disruptions were caused by a number of variables, some linked to the epidemic. While things could easily escalate in Vietnam, one concern is how it will cost-effectively maintain competition with China. In addition to Apple Watches and MacBooks, it appears that Apple will also test production of the HomePod speaker in Vietnam as well.
The company first branched out from China with its iPhone production in India in 2017. While the iPhone SE had initial demand, things accelerated, with Apple also shifting iPhone 11 and iPhone 12 production to India. Now, the country also manufactures iPhone 13, and there were recent reports that it could take over iPhone 14 production. Vietnam has been manufacturing Apple Airpods since 2020 and now produces iPads as well. These kinds of expansions could be significant, not just for Apple but for the countries involved, so it will be interesting to see how things move forward in Vietnam, India and China as well.
source: Nikki Asia
[ad_2]
