Apple reportedly in talks to make Apple Watches and MacBooks in Vietnam

KEY POINTS

• Apple is reportedly in talks to produce Apple Watches, HomePods and MacBooks in Vietnam.
• The company has dealt with supply chain disruptions because of Covid-lockdowns in China, so it has been looking to expand production elsewhere.
• Vietnam already produces some of Apple's AirPods and the company reportedly began to move iPad production to the country in June.

Apple CEO Tim Cook poses in front of a new MacBook Airs running M2 chips display during Apple's annual Worldwide Developers Conference in San Jose, California, June 6, 2022.

Peter Dasilva | Reuters

Apple is in talks to produce Apple Watches, MacBooks and HomePods in Vietnam for the first time, Nikkei Asia said Wednesday.

It again shows how Apple is trying to expand its manufacturing outside of China, as it battles supply chain disruptions related to Covid lockdowns and increased U.S.-China trade tensions.

Apple has asked suppliers to set up a MacBook test production line, and suppliers have started testing Apple Watch production, according to the report. The company is reportedly still in talks to build HomePod speakers in the country.

Mac sales were short of consensus expectations in Apple's fiscal third quarter, and sales fell over 10% on a year-over-year basis. Apple iPad revenue beat expectations but was down 2% year-over-year. CEO Tim Cook said this was due to supply constraints and the strong dollar.

Apple already makes some AirPods in Vietnam and reportedly began to move some of its iPad production to the country in June.

An Apple spokesperson did not immediately respond to requests for comment.