Production of mainly iPad and MacBook to be shifted.
The shift is in the response to the trade war.
Apple has reportedly started production of the AirPods Pro in Vietnam.
Apple has asked Foxconn to move the production of MacBooks and iPads manufacturing units to Vietnam as Reuters reports. According to the reports Apple wants to diversify the supply chain due to the ongoing disputes between China and the US. The assembly line would start production in the first half of 2021 at Foxconn’s Bac Giang province according to the Reuters source.
The report doesn’t list out any specific models of the iPad and MacBook lineup which would be shifting to Vietnam or how much production capacity would be shifting to Vietnam. It looks like Apple has already started the production of Apple AirPods Pro in Vietnam earlier this year. Apple has already been manufacturing certain iPhone models in India, since before the US-China trade war to meet the local import duty regulations and contribute to the Make in India initiative.
Nikkei reported earlier this week, that Foxconn is planning to invest $270 million in Vietnam to expand production and also reports that Foxconn is planning to move almost 30 percent of its production out of China. In the wake of Foxconn expanding its footsteps in Vietnam, other companies such as Pegatron and Wistron have also decided to expand in Vietnam.
Vietnam is geographically close to China and also is a part of RCEP, making it convenient for the procurement of raw materials and shipping out the products for vendors and suppliers. Vietnam also has cheap labour which would make it a viable choice and probably a replacement for China in the near future.