Apple Shifts Manufacturing Operations to Vietnam, Reducing China Reliance

However, Apple cannot escape tariffs, even though it is moving production to Vietnam. Products imported from Vietnam will face a 20% under reciprocal tariffs announced by the Trump administration on July 31.

Apple is preparing to expand its manufacturing operations in Vietnam to increase its presence in the smart home market and reduce its reliance on China.

The company is developing new home devices to be released next year, like indoor security cameras and a display designed to control household appliances. They are also launching an even more advanced tabletop robot with motors and sensors, designed to move, in 2027.

All three products will be produced in Vietnam. Apple is traditionally known for manufacturing products in China, but it is expanding production to other countries.

For the upcoming products, they are partnering with BYD, a Chinese company known for EVs. It will be responsible for final assembly, testing, packaging, and shipment to customers. The company also plans to expand iPas production with BYD in Vietnam, according to anonymous sources. Apple also produces iPads, AirPods, Apple Watches, Macs, and older HomePods in Vietnam.

The company wants to diversify its supply chain to Vietnam, as it is growing in importance as a production centre, due to geopolitical tensions, tariff threats, and supply chain disruptions in China.

However, Apple cannot escape tariffs, even though it is moving production to Vietnam. Products imported from Vietnam will face a 20% under reciprocal tariffs announced by the Trump administration on July 31.

Meanwhile, India has become a hub for iPhone production intended for the US, and it also makes some products in Malaysia and Thailand.

The hardware for Apple’s new home hub was completed a year ago. The product was initially scheduled for launch in March 2025, along with the new Siri, but delays in AI software pushed back the release date. Now, Apple is aiming for a spring debut in 2026, after missing its launch in June and October.

The updated Siri is expected to launch in March. It will allow users to get answers from the web and exert control over smart home functions, similar to ChatGPT and other chatbots. It will make it useful for devices aimed at controlling appliances, music, and other communication inside the house.

The device will feature a FaceTime camera and a software interface that adapts to the user’s needs. The model will recognize users as they approach the display, similar to Amazon’s latest Echo devices.

Apple will price the new device at around $350. That would be about $50 more than a HomePod and higher than its competing products from Amazon and Google.

Apple’s operations team has been exploring ways to reduce manufacturing costs in an effort to lower the price of its future versions, according to sources familiar with the matter.

The indoor security camera is planned for launch by the end of next year. The company is also planning to manufacture the tabletop tobot, which is similar to the home hub display but sits on a motorised arm that can move the screen around the user’s workspace or kitchen.

The motor system has faced some challenges during engineering, and the company is still working to incorporate an AI feature into the device, pushing the expected release back by about two years.

The robot will be priced in the hundred-dollar range, reflecting its high cost of robotic and AI components.

The company is also developing a robotic arm for manufacturing and exploring mobile robots similar to the Amazon Astro. The updated Siri, the tabletop robot, will have a roughly 9-inch display, larger than the Home Hub’s screen.

Both devices will use low-cost LCD panels from Tianma Microelectronics, rather than using Apple’s latest advanced display technology.