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Apple reportedly shifting production of MacBook and Apple Watch to Vietnam

By Cookie Monster - on 18 Aug 2022, 12:00am

Apple reportedly shifting production of MacBook and Apple Watch to Vietnam

The Apple Watch Series 7.

Apple is reportedly planning to shift production of MacBook and Apple Watch to Vietnam. 

Three sources with direct knowledge of the matter told Nikkei Asia Apple suppliers Luxshare Precision Industry and Foxconn started test production of the Apple Watch in northern Vietnam with the goal of manufacturing the smartwatch outside of China for the first time. For the MacBooks, suppliers have been tasked by Apple to establish a test production line in Vietnam.

Nikkei Asia says Apple increased the number of Vietnamese suppliers from 14 in 2018 to at least 22 in 2022. However, Apple will face difficulties if it really wants to produce the Apple Watch and MacBook in Vietnam. Assembly costs are not only more higher, the assemble process is also quite challenging for Vietnamese suppliers.

Apple has been shifting production of its products out of China since 2019. Nikkei Asia reported in 2019 that Apple planned to shift up to 30% productiuon out of China due to trade tensions between the U.S and China. 30% of AirPods production was also said to be shifted to Vietnam from 2020 as the Covid-19 pandemic exposed Apple's reliance on China.

The Wall Street Journal reported in May this year that Apple informed contract manufacturers to expand production beyond China, especially to India and Southeast Asia. Nikkei Asia reported in June that iPad production is moved to Vietnam for the first time.

Source: Nikkei Asia via 9to5Mac

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