Wednesday 17 August 2022 07:43 PM Apple considers making its watches and MacBooks in Vietnam instead of China trends now
Apple is reportedly considering producing its Apple Watch and MacBook in Vietnam for the first time, in a move that would lessen the company's dependence on China amid rising international tensions.
Apple's key suppliers for the watches and laptops have started test production of Apple Watch in northern Vietnam, Nikkei Asia reported on Tuesday, citing people familiar with the matter.
It follows weeks of escalated rhetoric from Beijing following Speaker Nancy Pelosi's visit this month to Taiwan, the self-governed island that China claims as its territory.
Apple, the biggest US company, has long been dependent on Chinese factories, but according to the new report, its Chinese supplier Luxshare Precision Industry and Taiwan-based Foxconn are exploring the new production lines in Vietnam.
In 2016, Apple struck a $275billion deal with Chinese authorities - which would allow the tech giant to grow most of its operations in the county while also doing 'its part to develop China's economy and technological prowess through investments, business deals and worker training.'
Apple CEO Tim Cook is seen in a visit to an overseas supplier. The company is considering shifting more production to Vietnam to lessen its dependence on China
Taiwan-based Foxconn is one of the suppliers exploring the new production lines in Vietnam
Although its unclear how much of the $275billion contributes to product manufacturing and development, the 2016 deal proved how much Apple relied upon China for its business.
The five-year agreement, forged by CEO Tim Cook, would have expired last year, according to The Information. It's unclear if this new move to Vietnam is in response to the agreement's end.
An Apple spokesperson did not immediately respond to a request for comment from DailyMail.com on Wednesday.
Apple began diversifying its production in Vietnam in 2020, when it began to shift production of AirPods
