Apple in talks to make MacBooks, Apple Watches, HomePods in Vietnam as it looks to break China dependence

Apple is reportedly in talks to produce MacBooks, Apple Watches, and HomePods and MacBooks in Vietnam. Vietnam already produces some of Apple’s AirPods and the company reportedly began to move some iPad production to the country in June.

Apple in talks to make MacBooks, Apple Watches, HomePods in Vietnam as it looks to break China dependence

Cheng Ting-Fang and Lauly Li for Nikkei Asia:

Apple is in talks to make Apple Watches and MacBooks in Vietnam for the first time, marking a further win for the Southeast Asian country as the U.S. tech giant looks to diversify production away from China.

Apple suppliers Luxshare Precision Industry and Foxconn have started test production of the Apple Watch in northern Vietnam with the aim of producing the device outside of China for the very first time, three people with direct knowledge of the matter told Nikkei Asia.

Apple has also continued to shift iPad production to Vietnam after COVID-related lockdowns in Shanghai caused massive supply chain disruptions. BYD of China was the first to assist with this shift, though sources told Nikkei Asia that Foxconn, too, is now helping build more iPads in the Southeast Asian nation. Apple is also in talks with suppliers to build test production lines for its HomePod smart speakers in Vietnam, the people said.

Apple’s diversification to Vietnam started with AirPods, which went into mass production there in 2020. The earphones were among the first Apple products whose assembly was shifted out of China after a trade war between Washington and Beijing broke out under former U.S. President Donald Trump.

MacDailyNews Take: Former U.S. President Richard Nixon, who opened relations with China in the early 1970’s, just before his death in 1994 remarked on China: We may have created a Frankenstein.

Apple cannot divest their dependence on China quickly enough (because they started years too late).

It’s smart for both Apple and Foxconn to diversify assembly outside of China. There’s no sense having all of your eggs in one basket.MacDailyNews, April 2, 2019

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13 Comments

  1. Diversification? How does moving manufacturing to Vietnam do that? Didn’t the CCP roll in to Vietnam like they did in Afghanistan? Vietnam is like Taiwan. One step away from a China takeover. China is trying to take over Brazil too. Pretty scary.

    1. Yep. It’s a start. Best bet is to do what an earlier president did. Tariffs on all cheaply made items. Especially slave labor items. It does three things: Generates additional money for the US, slowly brings back jobs and stops giving tons of money to communist governments. This needs to be done permanently and then, and only then will we see manufacturing move back to the US.

      This needs to happen with pharmaceuticals first. Has anyone here thought about what will happen if we go to war with China?? First thing China will do is cut off all drug/medicine and antibiotics shipments to the US. Give that a long hard thought. We would be fucked.

  2. Apple, your goal of getting out of China is laudatory. It is also not a moment too soon. At the same time though, I am being kind when I say that empowering a replacement communist dictatorship seems less than prudent, in light of the monster that American Capitalism created. In addition while Sino-Vietnamese relations are on the cool side right now, in any significant conflict with the west, the comrades will stick together.

    Is it really impossible for you to bring manufacturing or at least assembly home to America? Is there no western Democracy you might exploit? Nothing happening in the Nordic region? Ireland? Germany? The U.K.? Someone mentioned Brazil. At least Brazil is still a Federal Republic like us. Sorta. If its profit, I for one would pay $100 more for an iPhone. It’s expensive as hell already. The state of California charges me over $100 for the privilege of buying one. What’s $100 more?

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