Apple will manufacture Apple Watches and MacBooks in Vietnam

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Luxshare Technical Industry, an Apple supplier from China, and Foxconn, a Taiwanese company, have begun producing Apple Watch prototypes in northern Vietnam.

The report stated that Apple has asked suppliers to set up a test production line for the MacBook in Vietnam, and that progress in moving commercial production there has been slow due in part to disruptions related to the pandemic but also because producing notebook computers involves a larger supply chain.

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In addition to assembling iPad tablets, Apple has been moving some aspects of iPhone production from China to other regions, notably India, where it began producing the iPhone 13 earlier this year. Contract manufacturers providing American brands are increasingly relying on Mexico, Vietnam, and India, the second-largest smartphone markets in the world, as they aim to diversify their production away from China.

An inquiry for a response from Reuters was not answered quickly by Apple, Foxconn, or Luxshare Precision.

After reporting profits that surpassed expectations last week, Taiwanese contract manufacturer Foxconn cautioned about the upcoming quarter, citing waning smartphone demand following a pandemic-fueled surge. Foxconn, formerly known as Hon Hai Precision Industry Co Ltd, has experienced a significant chip shortage that has hampered manufacturing as bottlenecks from the pandemic persisted and the Ukraine war further strained logistics networks.

Also Read: Apple initiates layoffs in advance of its other return to work campaign

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