Apple's production expansion in Vietnam may not be just a partial shift of the AirPods supply chain from China, as a report claims Apple will be using factories in Vietnam to create its long-rumored over-ear headphones.
Apple is shifting a substantial portion of its current AirPods production from China to Vietnam, and appears to be considering a release schedule later than previously predicted for an AirPods refresh.
Apple assembly partner Pegatron is considering a diversification of its production facilities with a new operation in Vietnam, a plan that would help move some of its manufacturing outside of China and potentially mitigating any future issues over US-China trade tensions.
Apple assembly partner Foxconn is reportedly considering the possibility of setting up a new facility in Vietnam, a move that could potentially prevent the iPhone from being hit by tariffs created by the Trump administration in its ongoing trade war with China.
Apple has partnered with Lazada, owned by Alibaba, to bring official online sales of its products to several southeast Asian countries: Indonesia, Thailand, the Philippines, Singapore, Malaysia, and Vietnam.
Two firms, Interflex and Samsung Electro-Mechanics, are reportedly boosting their spending on production of flexible printed circuit boards (FPCBs) specifically for Apple's upcoming iPhones, including the "iPhone 8," which should be the first iPhone with an OLED screen.