Newsnomics AJAY ANGELINA reporter | Following production tests at Foxconn's Vietnam facility, Apple plans to start manufacturing its MacBook laptops in Vietnam for the first time by mid-2023.
As part of plans to reduce its reliance on China, Apple has previously been exploring making the MacBook Pro in Vietnam. Now a new report says that following test runs, Apple plans to produce some number of MacBook Pro models in the country from around May, 2023.
"After the MacBook production shifts," an unspecified source told Nikkei Asia, “All of Apple's flagship products basically will have one more production location beyond China ... iPhones in India and MacBooks, the Apple Watch and iPads in Vietnam, What Apple wants now is an 'out of China' option for at least part of production for all of its products."
Plans to move some MacBook production to Vietnam have been underway for nearly two years, with a test production line already set up.
In 2021, local authorities approved a $270 million new Foxconn factory.
On August 2022, Foxconn company separately announced, that it was planning to invest $300 million to expand its North Vietnam facilities.
In December 2022, it was revealed that Apple is accelerating its plans to move part of its supply chain out of China. “It is now reportedly informing suppliers to "plan more actively" for assembly elsewhere in Asia, especially India and Vietnam.” report by the Wall Street Journal on Saturday 3, 2022.
For decades Apple counted China as its most important assembly base, but that winning formula reached a crisis point this year. In the spring, key MacBook and iPhone production sites in Shanghai faced massive disruptions due to a months-long COVID lockdown.
Chiu Shih-fang, a supply chain analyst in Taiwan Institute of Economic Research, told Nikkei that these changes to the tech supply chain are irreversible.
"Most of the people in industry always hoped that the situation could ease and things could go back to the good old days," said Chiu. "But this time, they realize there is no way of turning back and no matter what they need to prepare alternatives beyond China."
Apple does have a long-term goal of shipping 40% to 45% of its iPhones from India. Meanwhile, Vietnam is expected to take on more production of other product ranges, such as AirPods, Apple Watch, and MacBook models.
