Vietnam and Apple are reportedly in talks for the Apple Watch and MacBook to be produced in the country for the first time, as the US tech giant seeks to shift away from China.
Nikkei Asia reported on Tuesday that, citing sources, Apple’s Chinese suppliers Luxshare Precision Industry and iPhone assembler Foxconn have started test production of Apple Watch and MacBook in Northern Vietnam.
In an effort to diversify its production away from China, Apple has begun producing the iPhone 13 in India and has plans to begin iPad tablet assembly there as well.
India, the second-largest smartphone market in the world, along with Mexico and Vietnam, are becoming increasingly important to contract manufacturers supplying American brands as they seek to shift away from China.
Analysts estimate that 90% of Apple’s products are produced by contract manufacturers in China, and the business has relied on Chinese factories for over a decade.
In April, Apple warned that supply chain shortages brought on by China’s strict COVID-19 restrictions might lead sales to plummet by as much as $8 billion (€7.5 billion) in the quarter ending June 30 2022.