In what is a masterstroke of supply chain diversification, Apple is pivoting away from China and India, and heading to Vietnam, where it is now preparing to build a number of home devices in partnership with the Chinese EV giant BYD.
Apple Pivots To Vietnam For A Range Of Home Devices
As per the reporting by Bloomberg's Mark Gurman, Apple is trying to unlock a whole new TAM related to home devices:
- Apple is eyeing the establishment of a manufacturing base in Vietnam in partnership with BYD.
- The tie-up reportedly relates to a range of home devices, including:
- A HomePod with a 7-inch screen to control intelligent household devices and act as a command hub.
- Indoor security cameras.
- A tabletop AI robot that would be capable of mobility via a number of motors and sensors.
- The HomePod will launch in 2026.
- The tabletop robot is currently slated for a 2027 launch.
Apple's Supply Chain Headaches
As we noted recently, Apple adopted a two-pronged approach earlier this year to deal with President Trump's trade war and tariffs:
- It moved the primary production of its iPhones to India from China.
- When the Trump administration imposed heightened import tariffs on India as well, Apple won an exemption for its products by pledging to invest $600 billion in the US over the next few years to create a domestic end-to-end silicon supply chain.
Of course, President Trump again ratcheted up tensions with China recently, flagging the latter's increasingly belligerent curbs on rare earth exports, and threatening 100 percent tariffs on top of existing levies, to try to gain maximum leverage ahead of a planned meeting with China's President Xi Jinping in the coming weeks.
Against this backdrop, Apple's pivot to Vietnam is an apparent bid to insulate itself from these geopolitical shocks, especially as Vietnam has largely de-risked itself by signing on to a comprehensive trade deal with the Trump administration.
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