According to Nikkei Asia on Tuesday, which cited sources familiar with the situation, Apple's suppliers are in discussions to make the Apple Watch and MacBook in Vietnam for the first time.
According to the source, Apple's Chinese suppliers Luxshare Precision Industry and iPhone assembler Foxconn have begun producing Apple Watch and MacBook prototypes in Northern Vietnam.
A portion of Apple's iPhone production has been moved from China to other regions, including India, where it began producing the iPhone 13 this year and where it also has plans to assemble iPad tablets.
India, the second-largest smartphone market in the world, as well as nations like Mexico and Vietnam are becoming more crucial to contract manufacturers providing American brands as they aim to diversify away from China in terms of production.
An inquiry for comment from Reuters was not immediately answered by Apple, Foxconn, or Luxshare Precision.
After reporting profits that exceeded expectations last week, Taiwanese contract manufacturer Foxconn cautioned about the upcoming quarter, citing waning smartphone demand following a pandemic-fueled surge.
Like other major manufacturers, Foxconn, formerly known as Hon Hai Precision Industry, has experienced a significant chip shortage that has hampered output as pandemic bottlenecks persisted and the Ukraine war put additional strain on logistics networks.
