Apple AirPods Max are made in Vietnam, but still by Chinese firms
Apple is continuing to reduce its dependence on suppliers in China by having the AirPods Max made in Vietnam -- but currently still by Chinese-owned companies.
Exploded view of AirPods Max (source: Apple)
Following previous moves away from China to reduce the impact of US trade disputes, Apple is reportedly having its new AirPods Max assembled in Vietnam. However, the factories assembling the headphones are still owned by companies based in China.
According to Digitimes, supply chain sources say that the headphones are being assembled by the Chinese companies Luxshare Precision Industry and Goertek. These unnamed sources say that the two companies beat Taiwanese competitors to the job even though Inventec Appliances had in some way participated in the development of the AirPods Max.
Digitimes says that its sources see the move to assemble in Vietnam as signifying that Apple is accelerating the relocation of its suppliers away from China. The same sources reportedly commented that the number of iPhones being produced in India is increasing.
China remains important to Apple, however. Recently it was revealed that Apple has been paying a bonus to staff who resume travelling to, and working in, China, following the lifting of coronavirus restrictions.
Exploded view of AirPods Max (source: Apple)
Following previous moves away from China to reduce the impact of US trade disputes, Apple is reportedly having its new AirPods Max assembled in Vietnam. However, the factories assembling the headphones are still owned by companies based in China.
According to Digitimes, supply chain sources say that the headphones are being assembled by the Chinese companies Luxshare Precision Industry and Goertek. These unnamed sources say that the two companies beat Taiwanese competitors to the job even though Inventec Appliances had in some way participated in the development of the AirPods Max.
Digitimes says that its sources see the move to assemble in Vietnam as signifying that Apple is accelerating the relocation of its suppliers away from China. The same sources reportedly commented that the number of iPhones being produced in India is increasing.
China remains important to Apple, however. Recently it was revealed that Apple has been paying a bonus to staff who resume travelling to, and working in, China, following the lifting of coronavirus restrictions.
Comments
https://en.wikipedia.org/wiki/Plausible_deniability <--
another reason why high tech manufacturing is a tough sell in the US, you can’t have a labor force this contrarian to main stream culture.
In case you did not know, there certainly is high tech manufacturing in the United States. What you don't see much of (anymore) is high volume, low cost manufacturing. I have worked for two companies which were both high tech manufacturers. However, both of these companies were smaller and manufactured lower volume, higher value products. Think industrial, military, medical, et al. - certainly not consumer widgets.
As for payment. I, like you, don't know the details of Apple's contracts with their manufactures. Also like you, I don't now how much people working on making Apple products are compensated and if that compensations os above or below market rate. Unlike you, I'm not going to speculate wildly.
I notice the guy who always argues with me and swears at me is sticking up for you. At least you are polite, like me, so I credit you with that. But my questions are polite and sincere. Do you think that the low wages are a factor in Apple's choice of manufacturers? If not, why doesn't Apple insist on fair wages by US standards? I'm polite and I'm sincere and I'm just trying to understand your point of view.
I just noticed a second person who has a deep hatred of me advising you not to talk to me. I guess some people can't face simple facts that come from the New York Times.
As for the rest... I doubt low wages are a direct factor in Apple's choice of manufacturers. When considering using a contract manufacturer there are a host of concerns (product quality, production time/capacity and production cost per unit are three biggies). While employee wages do impact the production cost, they are not typically a direct consideration. Instead it is simply a factor governing the manufacturers production cost per unit when negotiating a contract.
I see no reason to apply US wage expectations to a foreign company. If you did that, there would be FAR less incentive to have the work performed outside the US - employee costs are not an insignificant factor in manufacturing.
Isn't it one of the key reasons (along with Infrastructure, availability of skilled labor) why the manufacturing is spread out all over the world, wherever the products can be manufactured at the lowest cost possible? Why would they keep that manufacturing work outside of US, if they can get it done in US itself for the same amount? If you think through this further, it would be clear that it does not make economic sense. Apple can and does insist on fair wages by the local standards in which their contract manufacturers operate and rightly so.