Apple To Start Manufacturing Macbook, Apple Watch In Vietnam

Apple has begun talks with two of its suppliers about manufacturing the Apple Watch and Macbook in Vietnam.

This is according to the Nikkei Asia, which cited people familiar with the matter. On Tuesday it reported that Apple was talking with its Chinese supplier Luxshare Precision Industry and Taiwan-based Foxconn (Hon Hai Precision Industry Co Ltd) about the matter.

Apple has already moved some of its iPhone manufacturing out of China to other countries, most notable India, where it started manufacturing the iPhone 13 earlier this year, and is also considering assembling iPad tablets there.

Vietnam move?

According to Nikkei Asia, this is the first time that Apple is considering making the Apple Watch and MacBook in Vietnam, as it seeks to diversify its production away from China.

Luxshare Precision Industry and Foxconn have reportedly already started test production of the Apple Watch in northern Vietnam.

Now Apple reportedly asked its suppliers to set up a test production line in Vietnam for the MacBook, the report said.

The Nikkei Asia noted that Apple’s progress in moving mass production to Vietnam has been hampered due to a number of factors.

This includes pandemic-related disruptions, but also because laptop production involves a larger supply chain.

Manufacturing disruptions

The tech manufacturing sector as a whole has been badly hit by the Covid-19 pandemic.

Indeed, Chinese manufacturing was badly impacted in 2022 by strict government lockdowns, as Chinese authorities sought to contain ongoing Covid-19 infections.

In April this year for example, Taiwan’s Pegatron Corp which assembles iPhones for Apple, said it had suspended operations at its Shanghai and Kunshan plants in China.

It took the decision to suspend production at the two factories due to the Chinese government’s strict Covid-19 protocols.

The pandemic has also resulted in supply bottlenecks and delays, and Russia’s illegal war in Ukraine has further strained logistical supply chains.