Apple has decided to relocate vital iPad engineering resources to Vietnam, marking a significant move in diversifying its manufacturing hubs beyond China, Nikkei Asia reports.
This strategic step, a first for Apple, aims to bolster Vietnam’s status as an alternative manufacturing hub.
Partnering with China’s BYD, a principal iPad assembler, Apple is shifting its focus on new product introduction (NPI) resources to Vietnam.
This shift involves collaborating with suppliers like BYD to ensure the feasibility of designing and developing new products—a groundbreaking move for Apple regarding its core devices.
Sources indicate that engineering verification for test production of a new iPad model is set to commence around mid-February next year, with the model anticipated for release in the second half of the year.
This shift of NPI engineering resources is specifically directed towards entry-level iPad models, distinguishing it from the premium iPad Pro.
Apple’s NPI typically takes place in China, leveraging the country’s extensive experience in hardware manufacturing.
However, geopolitical uncertainties have prompted Apple to reconsider this approach, with plans also underway to transition some NPI processes for the iPhone to India.
Experts believe that Vietnam’s initial priority will be non-pro models due to the current manufacturing conditions and the evolving landscape of iPad production.
Despite this shift, Vietnam remains a relatively smaller contributor to iPad manufacturing compared to China.
