AirPods suppliers plan to expand manufacturing plant outside China


by

Jaz King

The Information reports that suppliers of Apple's AirPods wireless earphones are planning to expand their manufacturing base outside China.

Apple AirPod Suppliers Seek Financing to Expand in Vietnam? The Information
https://www.theinformation.com/articles/apple-airpod-suppliers-seek-financing-to-expand-in-vietnam



Some AirPods suppliers exploring financing to expand manufacturing into Vietnam
https://www.idownloadblog.com/2019/12/26/airpods-suppliers-vietnam-manufacturing/

According to reports from The Information, two Chinese-based suppliers, Goertek and Luxshare Precision, have begun financing to build part of their manufacturing base in Vietnam. Goertek and Luxshare Precision are companies that manufacture and supply components used to manufacture AirPods, Apple's wireless earphones.

The Information reports that Goertek and Luxshare Precision are in talks with several banks to raise funds to expand their manufacturing bases, with an estimated financing of tens of billions of yen. However, it seems that it will only expand the manufacturing base to regions other than China and does not mean that the manufacturing base will be completely relocated. Still, 'most of the production functions can be moved to Vietnam.'



It is clear that suppliers are expanding their manufacturing base to Vietnam due to the trade war between the United States and China. Goertek and Luxshare Precision, which have manufacturing bases in China, have extended their manufacturing bases to Vietnam in anticipation of further worsening relations between the U.S. and China and increasing tariffs on exporting parts from China to the United States. So you started planning.

When exporting products to the United States for Apple and its suppliers, there are reports that Apple hires `` professional negotiators '' to talk with President Trump to avoid tariffs on iPhones etc. Tariffs are a major problem.

Apple hires a `` professional negotiator '' for President Trump to avoid tariffs on the iPhone etc.- GIGAZINE



According to reports from The Information, the two companies have already started manufacturing AirPods-related components in Vietnam. In addition, exports of parts from China to Vietnam are relatively easy to process, and labor costs in Vietnam are about one-third of those in China. He talks about extending to Vietnam as a “natural alternative”.

in Mobile,   Hardware, Posted by logu_ii