Different factors are making China no longer the preferred country for mass production of consumer technology. In addition to the current trade war between China and the United States, production cost increases in China are also having an impact. The consequence? Many manufacturers are looking to move their production to other countries such as India or in this case, Vietnam.
A new report suggests that Apple’s main suppliers of AirPods (also AirPod Pro) are looking for funds to start production in Vietnam. Gorterk and Luxshare are the two manufacturers that currently seem to be looking for those millions of dollars to move production.
Why move production to Vietnam and not to another country?
The Southeast Asian country is one of the most developed in recent years. The local government is offering subsidies to companies and the labour costs are about a third of what they cost in China. The reasons seem obvious.
However, there is one more reason, and it has to do with the country’s geographical location. No matter how much the manufacture of AirPods is moved to Vietnam, much of the parts and materials will still come from China. In terms of logistics, sending materials to Vietnam is particularly easy as it is an adjacent country that can be reached by land, air and sea.
AirPods have a promising future ahead of them and one of the suppliers was recently asked to double production. In addition to AirPods several Apple suppliers are also moving or have already moved their iPhone production out of China to India. This is the case of Wistron and part of Foxconn, which produce some iPhone models in India.