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Apple to shift AirPod, iPad production to Vietnam
  • | VOV | September 27, 2022 03:03 PM
Apple is set to move production of 65% of wireless earbuds AirPods to Vietnam by 2025, slowly reducing its reliance on China, according to JP Morgan analysts.

The move will see Vietnam contribute 20% of the total production of iPads and Apple Watches, 5% of MacBooks, and 65% of AirPods by 2025.

Website TechCrunch also quoted a JP Morgan report stating Apple is now gearing up to make both Vietnam and India key global manufacturing hubs.

The tech giant is set to move 5% of iPhone 14 production to India this year, with plans to expand its manufacturing capacity there to produce 25% of all iPhones by 2025.

JP Morgan also predicted that in the near future, China and Taiwan (China) would continue to hold a significant market share due to better cost structures.

“Taiwanese Electronics Manufacturing Services (EMS) vendors, especially Pegatron and Wistron, are more selective and prioritizing profitability while focusing on new areas such as EVs and servers. Hon Hai remains a primary EMS partner for iPhones and should benefit from the move to India,” the report added.

Meanwhile, original equipment manufacturers (OEM) also said that Vietnam is emerging as a centre for manufacturing components and EMS for small-volume products.

Nikkei Asia earlier reported that Apple is in talks to produce Apple Watches and MacBooks in Vietnam for the first time, amid the US tech giant seeking to diversify production.

According to the media outlet, Apple suppliers Luxshare Precision Industry and Foxconn have started test production of the Apple Watch in northern Vietnam, with the ultimate aim of producing the device outside of China.

Foxconn, a key supplier to Apple, leased 50.5 hectares of land in Bac Giang province in August to build a US$300-million factory. It is expected to employ 30,000 local workers.

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