Production of Apple Watch and MacBook Transitioning to Vietnam as Apple Diversifies Supply Chain

Apple is moving the production of its Apple Watch and MacBook to Vietnam for the very first time. In an effort to further diversify its supply chain, Apple is working with its suppliers in order to manufacture two of its pivotal devices outside of China.

According to Nikkei, Apple suppliers Luxshare Precision Industry and Foxconn are leading the charge in regard to the production of the Apple Watch in northern Vietnam. Once test production is complete and full-scale production begins, this will mark the first time the Apple Watch is produced outside of China.

Production and manufacturing of the Apple Watch incorporate a lot of technical skills. It’s said that successful test production and proven ability would be a huge boon not only for the suppliers but for the country as it continues to legitimize itself as Apple’s production hub outside of China.

In addition, suppliers are also in the midst of testing the production of the MacBook. Though, sources are saying that COVID-19 has played its part in delaying mass production plans. Due to disruptions, the much larger supply chain is attributed to slower progression. By comparison, the supply chain in China is much more readily established and is also said to be more cost-efficient.

Vietnam is slowly becoming more of an important facet of Apple’s production. Starting in 2020, Apple began diversifying its supply chain by establishing the manufacturing of its AirPods in the country. This product was the first of Apple’s to transition away from China. Apple later began the production of the iPad in Veitnam this year as well as the pandemic continued to impact production.

Sources are also claiming that Apple isn’t stopping now. Apparently, the company is also looking at transitioning the production of its HomePod into Veitnam too. Suppliers are being asked about kickstarting test production of the smart home speaker unit.