Problems with the supply of electronics due to the epidemic of COVID and the semiconductor crisis began a long time ago and affected almost all manufacturers of equipment. Companies are actively looking for ways to overcome delays in the delivery of future devices. Apple is no exception. So, for example, before the production of iPhone 13 India joined.
As Nikkei Asia reports with reference to its own sources, the company plans to expand production in Vietnam. iPads and AirPods are already being assembled there, to which the Apple Watch and MacBook should be added. Together with them, they can start assembling the HomePod there. The company has already made a request to Luxshare Precision Industry and Foxconn to test production facilities.
The production of the Apple Watch requires extreme precision and requires a high level of technological mastery. Therefore, such production will benefit the country’s manufacturing sector. With the MacBook, there are some delays due to the supply of components, which is currently concentrated in China.
“AirPods, Apple Watch, HomePod and more…Apple has big plans in Vietnam outside of shopping mode iPhone manufacturing.MacBook components have become more modular than in the past, making it easier to produce laptops outside of China. But how to make it cost-competitive is another challenge,” one of the interlocutors of the media emphasizes.
Such changes are due to the latest outbreaks of COVID, due to which entire cities and, accordingly, production plants were closed for quarantine because China is very hard to fight the spread of the virus. Politics is also involved in the transfer of production. Even during the presidency of Donald Trump, the USA began to reduce its dependence on China. It was then that AirPods began to be collected in Vietnam. Along with Apple, such companies as Google, Dell, Amazon, and others are moving production to Vietnam.
“Geographically, we find major international electronics brands such as Apple and Samsung trying to lower dependence on making products inside China. China’s role as the world’s most important factory has been challenged since the trade war and then later its energy and zero-COVID policies. That really makes Vietnam, which is close to China, an ideal destination for many electronics makers as the nation gradually grows its supply chain ecosystem,” commented Isaiah Research senior analyst Eddie Han.
Apple, Foxconn and Luxshare did not respond to the media’s request to comment on the situation.