Apple has reported that Apple will produce 3 million to 4 million units or around 30% of total classic AirPods in Vietnam for the first time this quarter in a sign the company is accelerating its diversification of production out of China amid the COVID-19.
The Vietnamese government has provided special permits for the AirPods assembler to help the company bring in engineers to the country for smooth production during the lockdown.
Photo source: CNBC
The production relocation does not include AirPods Pro, a high-end version with noise-cancellation features that Apple introduced last October. Other Apple products such as the iPhone and MacBook are still mainly assembled in China. However, under the tension between China and the United States, large US technology companies have begun to diversify their production lines to Vietnam, Thailand, and other Southeast Asian countries.
The global pandemic has served as an additional reminder for tech companies of the importance of diversification and manufacturing sustainability, not just low costs.
Photo source: Apple Insider
Meanwhile, COVID-19 has also hit AirPods demand, as Apple was forced to close many of its brick-and-mortar stores. Apple has told its suppliers to lower production for the first half of 2020 by more than 10% from its original orders of around 45 million units, which is placed in January.
Cover photo: Sinchew || Nikkei Asian Review
