Apple in talks to make MacBooks, Apple Watches, HomePods in Vietnam as it looks to break China dependence

Apple is reportedly in talks to produce MacBooks, Apple Watches, and HomePods and MacBooks in Vietnam. Vietnam already produces some of Apple’s AirPods and the company reportedly began to move some iPad production to the country in June.

Cheng Ting-Fang and Lauly Li for Nikkei Asia:

Apple is in talks to make Apple Watches and MacBooks in Vietnam for the first time, marking a further win for the Southeast Asian country as the U.S. tech giant looks to diversify production away from China.
Apple suppliers Luxshare Precision Industry and Foxconn have started test production of the Apple Watch in northern Vietnam with the aim of producing the device outside of China for the very first time, three people with direct knowledge of the matter told Nikkei Asia.
Apple has also continued to shift iPad production to Vietnam after COVID-related lockdowns in Shanghai caused massive supply chain disruptions. BYD of China was the first to assist with this shift, though sources told Nikkei Asia that Foxconn, too, is now helping build more iPads in the Southeast Asian nation. Apple is also in talks with suppliers to build test production lines for its HomePod smart speakers in Vietnam, the people said.
Apple’s diversification to Vietnam started with AirPods, which went into mass production there in 2020. The earphones were among the first Apple products whose assembly was shifted out of China after a trade war between Washington and Beijing broke out under former U.S. President Donald Trump.

MacDailyNews Take: Former U.S. President Richard Nixon, who opened relations with China in the early 1970’s, just before his death in 1994 remarked on China: We may have created a Frankenstein.
Apple cannot divest their dependence on China quickly enough (because they started years too late).
It’s smart for both Apple and Foxconn to diversify assembly outside of China. There’s no sense having all of your eggs in one basket. — MacDailyNews, April 2, 2019
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