Apple’s suppliers are in talks to produce the Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia has reported, citing people familiar with the matter.
China’s Luxshare Precision Industry and Taiwanese iPhone assembler Foxconn have started test production of Apple Watch in Northern Vietnam, the report published on Wednesday said.
Apple has been shifting some elements of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 this year.
India, the world’s second-biggest smartphone market, and countries such as Mexico and Vietnam are becoming increasingly important to manufacturers supplying American brands, as they try to diversify production away from China.
Apple, Foxconn and Luxshare Precision did not immediately respond to a Reuters request for comment.
Last week, Foxconn gave a cautious outlook for the current quarter after posting results that exceeded expectations, citing slowing smartphone demand after a pandemic-fuelled boom.
Like other global manufacturers, Foxconn – formally called Hon Hai Precision Industry Co Ltd – has dealt with a severe shortage of chips that hurt production, as bottlenecks from the pandemic lingered and the Ukraine war further strained logistical channels.