Elain Brown Tech 08.17.2022 07:Aug AM EDT

Apple Is Expanding Production of MacBook and Apple Watch To Vietnam To Diversify Supply Chain

Apple's MacBook and Apple Watches will now be produced in Vietnam.

Apple is currently in discussions to begin manufacturing Apple Watches and MacBooks in Vietnam for the very first time.

Apple suppliers Luxshare Precision Industry and Foxconn have started test manufacturing of the Apple Watch in northern Vietnam.

This would be an additional triumph for the Southeast Asian nation as the American technology giant attempts to diversify production away from China. The tech company is aiming to bolster its manufacturing supply outside China.

Apple in Vietnam

Apple is in the process of testing production for both the MacBook devices and the Apple Watch models.

However, unlike any other device, the Apple Watch is unique on its own. The wearable technology demands complexity. A significant level of technological skill is required to fit many components into such a small container.

Apple has asked suppliers to build up a test production line in Vietnam for the MacBook laptops. Despite this, there has been little progress in bringing mass production to the region since the delays brought on by the pandemic.

Another additional factor is the complexity of manufacturing notebook computers because they require a longer supply chain than other devices. Vietnam would benefit from producing the device as it works to improve its tech manufacturing industry.

The components that go into making MacBooks are now more available and buildable than they were in the past, making it simpler to manufacture the laptops in locations other than China. Another obstacle to overcome is determining how to make it cost-competitive.

Apple is also holding discussions with potential suppliers in Vietnam about the development of test manufacturing lines for its HomePod smart speakers.

Apple has great intentions for Vietnam, including manufacturing not only iPhones but also AirPods, Apple Watch, and HomePod, among other products.

According to MacRumors, as part of a larger initiative to diversify its supply chain, the technology giant is currently in the process of moving the production of its Apple Watch and MacBooks to Vietnam.

Apple, which has been dependent on China for almost all of its production needs for decades, announced a shift in strategy with this decision, which signified a change in approach.

Apple's Supply Chain Diversification

The introduction of Apple's AirPods into mass manufacturing in Vietnam in 2020 marked the beginning of the company's diversification efforts in the country.

The Apple Watch and the MacBook are not the first electronic items to be manufactured in Vietnam.

According to Nikkei Asia, Apple's earphones were among the first Apple devices to have their manufacturing moved out of China as a result of a trade conflict between Washington and Beijing.

With factories in Vietnam producing a variety of Apple flagship devices, such as iPad tablets and AirPods headphones, the country is already the company's most significant production hub outside of China.

After the COVID-related lockdowns in Shanghai created huge interruptions, Apple continued to move iPad production to Vietnam. Vietnam is currently Apple's largest manufacturing facility outside of China.

Since 2018, the number of Apple suppliers that have facilities located in the country has climbed to at least 22, up from 14 total providers.

In order to diversify their operations away from China, a large number of other big electronics manufacturers, including Amazon, Dell, and Google, have also set up production in Vietnam.