According to Japan's Nikkei news agency, the US tech giant has been negotiating with Vietnam to produce more goods.
According to Wednesday's report from Japan's Nikkei news agency, Apple is in discussions to build watches and MacBooks in Vietnam as part of its efforts to diversify production away from China.
According to "people with intimate knowledge of the situation," the company's Chinese suppliers Luxshare Precision Industry and Taiwan-based iPhone assembly Foxconn have already begun test manufacturing of the two devices in Northern Vietnam.
It would be the first time that MacBooks and Apple Watches were made in Vietnam. It formerly produced less complex products for the corporation, such as iPads and AirPod earbuds.
After this year's COVID, Apple shifted some production there. According to the sources, the supply chain was disrupted by 19 lockdowns in Shanghai, the biggest metropolis in China. Additionally, negotiations have begun to set up test lines for Apple's HomePod smart speakers.
However, due to obstacles brought on by the pandemic and the significantly longer supply chain required in producing the computers, work in transferring MacBook production to Vietnam has lagged behind schedule, the sources claim.
Apart from producing iPhones in Vietnam, Apple has enormous aspirations for products like AirPods, Apple Watch, HomePod, and more, according to a source for the news agency. The ability to manufacture MacBooks outside of China has been facilitated by the components' increased modularization. Another difficulty is how to make it cost-competitive.
Following the start of a trade battle between Washington and Beijing under then-US President Donald Trump, Apple, which had for years relied virtually exclusively on China for its manufacturing, began to diversify. In 2020, the first AirPods produced in Vietnam were released.
The action was taken in the midst of a recent uptick in hostilities between the US and China, which were sparked by House Speaker Nancy Pelosi's travel to Taiwan, a self-governing island that Beijing claims as part of its territory.
Along with Vietnam, other nations like Mexico and India—where the iPhone 13 was introduced this year—have developed into key production centers for Apple outside of China.
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