Apple suppliers assigned to produce Apple Watch and MacBook in Vietnam
Nikkei Asia reported on Tuesday that Cupertino giant Apple has been working to expand its manufacturing line by allocating its suppliers to manufacture its Apple Watch and MacBook in Vietnam. Luxhsare Precision Industry, a Vietnamese company that makes Apple products, and Foxconn, a Chinese company that makes Apple products and has factories in Taiwan, have started talking with Apple about making the Apple Watch in Northern Vietnam.
Apple has asked its supplier counterparts to set up a new testing production ramp in Vietnam itself, which will work closely towards the production of its Macbook lineup, in addition to assisting with the production of these new Apple Watches. New research indicates that after the country’s mass manufacturing sputtered in part because of pandemic-related disruptions and also supply chain disruptions, only these supplier companies are now moving towards mass production within the country.
Apple has already begun shifting some iPhone production out of mainland China and into other locations, most notably India, which has been focusing on iPhone 13 production since earlier this year and has ambitions to start producing iPads. Since the US wants to move away from making things in mainland China, India, which has the second-largest mobile phone market in the world, has become one of the most important contract producers.
Despite Reuters’ request for comment, neither Apple, Foxconn, nor Luxshare Precision responded. According to reports from last week, popular Taiwanese contract maker Foxconn offered a gloomy forecast for the current quarter while posting earnings that were beyond expectations, with the drop in smartphone demand after a pandemic-fueled boom being mentioned as the cause. Foxconn and many other global manufacturers are having trouble making things because there aren’t enough semiconductors. This is because the epidemic is still causing delays, and the Ukraine conflict is making things even worse.
Even still, more such evidence is expected to emerge soon from this Cupertino behemoth. As more details become available, we will continue to keep you informed.