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Apple’s latest unit, the new Vision Pro headset, which is set to hit stores on Wednesday with an upgraded M5 processor and redesigned band, is being manufactured in Vietnam. The debut Vision Pro model, powered by the M2 chip and released in February 2024, was originally produced in China.
While the headset volumes accounted for only a small portion of Apple’s hardware output, its relocation marks another sign of Apple’s gradual move away from China.
However, iPhone production remains centered there.
Apple is reportedly assembling new smart home products in Vietnam
Apple has been walking a fine line, trying to maintain good relations with Beijing while contending with Trump-era tariffs and the push to diversify its manufacturing base. The tech giant has already transferred a significant portion of its iPhone output for U.S. buyers to India this year to circumvent new tariffs on Chinese imports. A significant portion of AirPods, iPads, HomePods, and Apple Watches is also being manufactured in Vietnam.
Sources even stated that the firm’s next-generation smart home products — including a smart display, a home security camera, and a tabletop robot — will be built in Vietnam. The iPhone maker is reportedly collaborating with Chinese EV maker BYD to assemble the new smart home devices. The Chinese manufacturer will oversee final assembly, testing, and packaging of the firm’s new home hub and tabletop robot.
Beyond India and Vietnam, Apple has expanded its Mac production network to include Thailand and Malaysia. The firm also agreed to make AirPods Max mesh parts in Indonesia under a government partnership announced earlier this year.
In addition to overseas changes, Apple is also expanding its U.S. manufacturing. Together with Corning Inc., the iPhone maker will begin manufacturing cover glass for all iPhones and Apple Watches in the U.S. However, flagship devices remain out of reach for local assembly, except for the high-end Mac Pro, which is made in Texas.
So far, the company hasn’t confirmed whether all Vision Pro units are manufactured in Vietnam or if some are still assembled in China. Though the company usually splits the manufacturing of its larger-scale products among several countries.
Apple is struggling with the design and production of a foldable iPad
On a related note, Apple’s recent efforts to refresh the iPad lineup with a large foldable display have encountered engineering snags, potentially pushing back the launch. The company had planned to launch it in 2028, but sources revealed that engineering issues with its weight and display technology have pushed back the launch timeline to 2029 or later.
The device, which could carry a $3,000 price tag, has been in development for several years. Although whispers of delays have been circulating for a while, the latest reports indicate that hinge and design challenges are the primary roadblocks.
People familiar with the project said Apple is working alongside Samsung Display Co. on an approximately 18-inch panel. The design will reduce the crease typically seen on foldable screens, a strategy Apple intends to adopt for its upcoming foldable iPhone.
Nevertheless, the development of an 18-inch foldable screen has proven both technically challenging and costly, with estimated prices reaching nearly three times that of the 13-inch iPad Pro. The new tablet, like the current Pro model, would use OLED technology, which offers vivid visuals and thinner designs.
Apple’s foldable iPhone is also facing delays. The phone, which has long been rumored and eagerly awaited, could now arrive in 2027, pushing back expectations by a year.
While the development of these devices will take a bit longer, on the bright side, the extra development time might be exactly what the devices need to meet the iPhone maker’s premium standards.
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