Apple suppliers to make Apple Watch and MacBook in Vietnam
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Apple’s suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar with the matter.
Apple’s Chinese suppliers Luxshare Precision Industry and iPhone assembler Foxconn have started test production of Apple Watch and MacBook in Northern Vietnam, the report added.
Apple has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 this year, and is also planning to assemble iPad tablets.
India, the world’s second-biggest smartphone market, along with countries such as Mexico and Vietnam are becoming increasingly important to contract manufacturers supplying American brands, as they try to diversify production away from China.
Apple, Foxconn and Luxshare Precision did not immediately respond to a Reuters request for comment.
Last week, Taiwanese contract manufacturer Foxconn gave a cautious outlook for the current quarter after posting results that exceeded expectations, citing slowing smartphone demand after a pandemic-fuelled boom.
Like other global manufacturers, Foxconn – formally called Hon Hai Precision Industry Co Ltd – has dealt with a severe shortage of chips that hurt production, as bottlenecks from the pandemic lingered and the Ukraine war further strained logistical channels.
Questions & Answers
Q.Which specific Apple products are being considered for production in Vietnam?
Which specific Apple products are being considered for production in Vietnam?
Apple Watch and MacBook are the specific products that Apple's suppliers are in talks to produce in Vietnam for the first time. Test production for both has already commenced in Northern Vietnam.
Q.Which suppliers are involved in the test production of these Apple products in Vietnam?
Which suppliers are involved in the test production of these Apple products in Vietnam?
Apple's Chinese suppliers, Luxshare Precision Industry and iPhone assembler Foxconn, have started test production of the Apple Watch and MacBook in Northern Vietnam, according to the report.
Q.Beyond Vietnam, which other countries are seeing increased production for American brands?
Beyond Vietnam, which other countries are seeing increased production for American brands?
India and Mexico are also becoming increasingly important to contract manufacturers supplying American brands. India has already started manufacturing the iPhone 13 and plans to assemble iPad tablets.
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