Apple increases production in Vietnam 2Apple increases production in Vietnam 2

Nikkei sources said 3-4 million AirPods or about 30% of these wireless headphones models will be produced in Vietnam in the second quarter.

Nikkei said this sign shows that American technology companies are accelerating the diversification of production away from China during the epidemic season.

Apple’s AirPods headphones.

In mid-January – when Beijing and Washington signed a phase one agreement to ease long-lasting trade tensions, Apple slowed down the process of shifting production from China.

In addition, US-China trade tensions have flared up again as the Trump administration plans to move the supply chain out of China as punishment for Beijing’s handling of the pandemic.

`This is still an unchangeable trend as American technology companies gradually need to find production facilities outside of China,` a supply chain leader told Nikkei.

According to this leader, most American businesses, including Apple, are looking for locations outside of China.

Previously, Apple asked suppliers to plan to move about 15% to 30% of hardware production out of China at the height of the trade war last year.

Similarly, Luxshare-ICT invested in Vietnam last year and has also been certified by Apple to mass produce wireless headphones in Vietnam.

Thus, Apple has gradually formed a more complete audio equipment supply chain in the North.

In addition, other Apple audio component suppliers such as Merry Electronics are cooperating with Luxshare to prepare a factory in Vietnam, expected to operate as early as this summer.

Willy Shih, professor at Harvard Business School, said the pandemic will force many technology companies to take a different look at supply chain continuity issues.

`So far, in terms of supply chains, China actually has good infrastructure, transportation, logistics and skilled labor. However, we will see more production diversification in the next few years. Of course

According to Willy Shih, a possible scenario is that besides China, the technology giant will choose one, two or even three other countries in the long term.

Currently, the majority of AirPods and AirPods Pro are still manufactured by Apple in China, although some electronic components have been subject to additional tariffs since the end of last year by the Trump administration.

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