Apple suppliers may be planning to make Apple Watch, MacBook in Vietnam

Apple suppliers are planning to produce Apple Watch and MacBook in Vietnam for the first time. According to a report by Nikkei Asia, people familiar with the matter have cited the same. The report also added that Apple’s Chinese supplier Luxshare Precision Industry and Taiwan-based Foxconn have started test production of the Apple Watch in northern Vietnam. The Cupertino-based tech giant has also asked suppliers to set up a test production line in Vietnam for the MacBook, the report continued.
As per the report, pandemic-related disruptions have partly slowed the company’s progress in moving mass production to the country which has also faced other issues as notebook computer production involves a larger supply chain.

Why Apple is gradually shifting production to different countries
Apart from the Apple Watch and MacBook, the tech giant has recently shifted some areas of iPhone production from China to other markets, including India. The company started manufacturing iPhone 13 earlier this year in India and is now planning to assemble iPad tablets in the country, suggests a Reuters report.
Apple is trying to diversify production away from China. To do so, the company is shifting its production to countries like India (which is the world’s second-biggest smartphone market) and other nations like — Mexico and Vietnam. These countries are becoming crucial for the company to contract manufacturers supplying American brands.

The report also mentions that neither Apple nor Foxconn nor Luxshare Precision has responded to a Reuters request for comment. Moreover, Foxconn has also faced a severe shortage of chips that affected production. These shortages were caused as “bottlenecks from the pandemic lingered and the Ukraine war further strained logistical channels,” the report added.

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