According to Nikkei News, three people familiar with the matter said that Apple suppliers Lixin Precision and Foxconn have begun trial production of the Apple Watch in northern Vietnam, the first time Apple has produced the device outside of China. But today Tianfeng International Securities analyst Ming-Chi Kuo tweeted that the Apple Apple Watch has already started shipping in Vietnam.
Ming-Chi Kuo said that Lixin Precision, the main assembler of Apple Watch, has production lines in both China and Vietnam, and has been shipping from Vietnam since Apple Watch 7. He expects the Apple Apple Watch 8, which will be released later this year, to be shipped in Vietnam at a significantly higher rate of 60-70 percent.
Kuo also said that Lixion Precision is the leader among Apple’s Chinese suppliers in building production lines in non-Chinese countries, a first-mover advantage that will help Lixion Precision grow in the long run against globalization trend.
In June, Nikkei Asia reported that Apple moved some iPad production from China to Vietnam for the first time ever after months of supply chain disruptions caused by strict epidemic controls in and around Shanghai.
The move shows that Apple is actively seeking to diversify its production regions, and in May this year Apple CEO Tim Cook also expressed Apple’s interest in working with Vietnamese manufacturers that meet the company’s standards.
