Apple’s suppliers in Asia are currently in talks to start producing the company’s Apple Watch and MacBook products in Vietnam for the first time ever, as reported by Nikkei.
Both of the above-mentioned products, in addition to the iPhone and iPad, are primarily manufactured in China, but according to the report, Apple is looking to diversify away from China. Apple’s Chinese supplier Luxshare Precision Industry, alongside Taiwan-based Foxconn, are now test-producing the Apple Watch in northern Vietnam.
Vietnam has already taken up some of the manufacturing load from China in the past, and produces the iPad tablets and AirPods for the Cupertino-based company. When it comes to the Apple Watch, “Producing the device would be a win for Vietnam as the country attempts to further upgrade its tech manufacturing sector,” reads the report.
According to the sources, Apple is also in talks with suppliers about establishing test production lines for its HomePod smart speakers in Vietnam, and the same goes for the MacBook, however, when it comes to the MacBook, manufacturing cost is an issue.
“AirPods, Apple Watch, HomePod and more … Apple has big plans in Vietnam, apart from iPhone manufacturing,” a source told Nikkei. “The components for MacBooks have become more modularized than in the past, which makes it easier to produce the laptops outside of China. But how to make it cost-competitive is another challenge.”
Apple first diversified its manufacturing capabilities with Vietnam back in 2020 with AirPods, with other major tech giants, including Google, Dell and Amazon, also setting up production in Vietnam to diversify beyond China.