October 3, 2022
Apple is Shifting 30% of AirPods 2 Production Out of China [Report]

Apple is Shifting 30% of AirPods 2 Production Out of China [Report]

Posted May 8, 2020 at 3:37pm by iClarified · 5826 views
Apple is shifting around 30% of AirPods 2 production to Vietnam from China this quarter, reports Nikkei Asian Review. The move is purportedly part of an accelerated effort to diversify production out of China amid the COVID-19 outbreak.

Some 3 million to 4 million units, or around 30% of total classic AirPods production this quarter, will be "made in Vietnam," the sources said. The production relocation does not yet include AirPods Pro, a high-end version with noise-cancellation features that Apple introduced last October.

"The mass production of AirPods in Vietnam started as early as in March," a person familiar with the matter said. "The Vietnamese officials even granted special permits for a key Apple AirPods assembler to help the company bring in engineers to the country for smooth production during lockdowns."

According to Nikkei, Apple slowed efforts to move production out of China after a trade deal was reached between the US and China in mid-January. However, the coronavirus pandemic has reminded tech companies of the importance of diversification and manufacturing sustainability.

"It's still an irreversible trend that big U.S. tech companies will need to gradually seek production bases outside China," another supply chain executive told Nikkei. "Most of the U.S. companies including Apple are looking for non-China production. ... Some prefer Vietnam and some like Thailand, some in India, and some in the Americas, and others Southeast Asian nations."

More details in the full report linked below. The AirPods Pro retail for $249 but are currently on sale for $234.95 at Amazon and $224.99 at Verizon. AirPods 2 with Wireless Charging Case are on sale for $169 at Amazon, down from $199, and AirPods 2 with Charging Case are on sale for $139, down from $159.

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Apple is Shifting 30% of AirPods 2 Production Out of China [Report]
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