Apple will produce AirPods in Vietnam - VnReview

Apple will produce AirPods in Vietnam – VnReview

This is a move to reduce the dependence of Apple on China in the context of the US-China trade war.

According to the 9to5mac, Apple will move its AirPods wireless headset manufacturing facility from China to Vietnam. Currently the transition is taking place on a small scale, while Apple is discussing with suppliers about the amount of production that can be achieved.

Information is also reported Nikkei Asian version posted. GoerTek, one of Apple's major manufacturing units, will test the latest generation AirPods headset production at an audio factory located in the North this summer.

There are 3 units producing AirPods including GoerTek, Iventec and Luxshare-ICT. This will be the first time AirPods are manufactured outside China.

Although the transition is only in the testing phase, Apple is aiming for mass production. Suppliers are required to not change costs during this period, and are only considered until production volume increases.

The plan to move the factory, assembling Apple products out of China was initiated when President Trump's administration announced that it would impose taxes on products imported from China, in which Apple will certainly be affected.

For a company that wants to minimize the risk as much as Apple, having multiple suppliers in many countries also brings long-term benefits. In addition, labor costs in China are also increasing due to advanced skills, people's living standards are also much better than before.

Recent reports show that Apple could move 15-30% of its production out of China in 3 years, in which all iPhones sold in the US will not be made in China. Although the shifting process with such scale in nearly 3 years is almost impossible, surely Apple will continue this direction.

Phuc Thinh

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