Apple Tests Production of Apple Watch and MacBooks in Vietnam

Nikkei Asian Review reports that test assembly of the Apple Watch and MacBook has started at Luxshare and Foxconn facilities in Vietnam.

Vietnam is already producing iPads and AirPods, but this is the first time that Watches and MacBooks have been produced in Vietnam. Given the technical complexity of assembling elements in the compact Apple Watch case, the receipt of relevant orders by Luxshare's Vietnamese factories can be seen as a recognition of the high level of skill of local employees.

Apple has continued to move iPad tablet assembly to Vietnam since Chinese contractors' facilities were hit by prolonged lockdowns this spring. At first the assembly of the iPad in Vietnam was organized by Chinese company BYD, known for its batteries and electric cars, and now it was joined by longtime Apple partner Foxconn. Negotiations are also underway to arrange assembly of the HomePod family of speakers in Vietnam.

Apple is facing difficulties with the relocation of the assembly, primarily related to the reorientation of the supply chain. Now the ecosystem is more developed in China and its main advantage remains cost optimization, and it is still expensive to create alternative infrastructure in Vietnam.

The first device that Apple assembles in Vietnam is the iPods. Since 2018, the number of Apple component suppliers with capacity in Vietnam has increased from 14 to 22.