Apple to begin trial production of AirPods in Vietnam

Posted:
in General Discussion
Apple will begin soon trial production of AirPods in Vietnam in an attempt to circumvent tariff fees imposed on Chinese-produced goods by Trump Administration.

Apple AirPods


Apple is poised to begin manufacturing more goods outside of China, this time focusing on their flagship wireless earphones, AirPods. By expanding production outside of China, Apple can reduce the expenses caused by tariffs put in place by the Trump Administration.

According to Nikkei Asian Review, Chinese manufacturing company, GoerTek, will begin test production runs of the newest generation of AirPods. The production runs will take place at its audio Factory in northern Vietnam.

Sources familiar with the situation have said Apple has asked components suppliers to support Goertek's efforts, even though initial production runs will be small. "Suppliers are requested to keep the pricing unchanged for the trial production stage, but this can be reviewed once volumes are increased," said one of the sources, "The initial output will be limited, but it is easy to increase capacity once all the manufacturing procedures are running smoothly."

Apple's traditional EarPods have long been produced in Vietnam, but until now, AirPods have been made exclusively in China.

Taiwanese supply chain analyst Chiu Shih-fang has said "It's very likely that Apple will adopt the "China plus one" strategy. Reducing significant volumes inside of China is too sensitive now for Apple, as well as it's suppliers." Other analysts have echoed the same concern.

In addition, Vietnam's comparatively low population may lead to potential labor shortages as more companies seek to move production out of China. This could prove the country to be less than ideal in the long run. The Trump administration has also threatened to impose tariffs on Vietnam ahead of June's G-20 summit.

Comments

  • Reply 1 of 9
    entropysentropys Posts: 1,801member
    Does that mean a price drop?
    edited July 17 watto_cobra
  • Reply 2 of 9
    lkrupplkrupp Posts: 7,162member
    Vietnam is a totalitarian, communist dictatorship experimenting with capitalism, JUST LIKE China. The same issues Apple is experiencing in China could easily repeat themselves in Vietnam at the whim of the governments of Vietnam or the U.S. as described in the article. 
    chaickawatto_cobra
  • Reply 3 of 9
    But Vietnam has not forced us to give up trade secrets, throw millions of dollars at supposedly 'private' companies to compete against independent American companies and publicly state that they see us as their competitor. I also have not heard of the kind of human rights abuses being done to Vietnam citizens as China so blatantly does to their own. Given a choice Id much prefer to support Vietnam where our dollars are not being spent to invest in weapons and a military which can only exist to one day face off against the US, being the only nation currently willing to stand up to them.
    StrangeDaysronnwatto_cobra
  • Reply 4 of 9
    tmaytmay Posts: 3,833member
    lkrupp said:
    Vietnam is a totalitarian, communist dictatorship experimenting with capitalism, JUST LIKE China. The same issues Apple is experiencing in China could easily repeat themselves in Vietnam at the whim of the governments of Vietnam or the U.S. as described in the article. 
    Vietnam is not nearly as repressive as China, by any measure, and for a fact, is often confronting China in the South China Sea.

    https://www.detroitnews.com/story/opinion/columnists/nolan-finley/2019/03/21/finley-vietnam-capitalism-creeps-up-communism/3212628002/

    "Yet the vibrancy on the streets, the intensity of the commerce suggest a people striving for something better. Economic reforms and the growth they've produced have heightened the drumbeat for political and human rights reform. And while the government issues rigid mandates, they are routinely ignored.

    "In Vietnam, there are no rules," our guide shrugs. 

    Vietnam's transition to a fully open society, while highly possible, is not inevitable. The long wait for the genie to emerge from the bottle in China demonstrates that."


    Whether they retrench to a more authoritarian government as China under Xi Jinping has is unknown, but one of my favorite China Hawks lives and teaches in Vietnam, and I don't think that he finds Vietnam all that repressive, at least compared to China.

    https://twitter.com/BaldingsWorld
    edited July 17 StrangeDaysracerhomie3ronnwatto_cobra
  • Reply 5 of 9
    StrangeDaysStrangeDays Posts: 8,277member
    entropys said:
    Does that mean a price drop?
    Why would it? The AP price was set prior to the tariffs from the trade war. 
    racerhomie3watto_cobra
  • Reply 6 of 9
    StrangeDaysStrangeDays Posts: 8,277member

    lkrupp said:
    Vietnam is a totalitarian, communist dictatorship experimenting with capitalism, JUST LIKE China. The same issues Apple is experiencing in China could easily repeat themselves in Vietnam at the whim of the governments of Vietnam or the U.S. as described in the article. 
    Incorrect. While they are one of two communist countries in the region, and citizens don’t enjoy the same freedom we do in the US, they do not have nearly the poor track record of human rights that China does.
    tmayracerhomie3ronnwatto_cobra
  • Reply 7 of 9
    Hopefully this means that Apple will be looking at India as well.
    watto_cobra
  • Reply 8 of 9
    AppleExposedAppleExposed Posts: 1,381unconfirmed, member
    Maybe they'll experiment with gen 1 at cheaper prices.
  • Reply 9 of 9
    racerhomie3racerhomie3 Posts: 1,149member
    Hopefully this means that Apple will be looking at India as well.
    India’s supply chain scene is terrible or non existent. Apple will move non iPhone production to Vietnam,Indonesia,Thailand before India .
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