Apple, Google Production Shift to Vietnam Slowed by COVID-19

Over the past few years, Apple, Google and Amazon have begun to move manufacturing from China to Vietnam to avoid trade tensions. However, the recent surge in COVID-19 cases has hit their plans as governments devise travel restrictions to mitigate the virus. Affected products include Apple’s iPad and MacBook, Google’s Pixel 6 line, and a few Amazon’s IoT devices.

Apple began shifting AirPod production to Vietnam two years before the trade relationship between the United States and China became particularly tenacious.Immediately after imposing new punitive tariffs on products made in China, U.S. government officials said Visit Chinese equipment supplier (That is, Huawei) “These companies [their] The side of the intensifying technological war between Washington and Beijing. It was clear that the visit constitutes a warning.

Vietnam proved to be an attractive alternative, and Apple, Microsoft, Amazon, and other major technology suppliers soon opened stores in Vietnam. Vietnam lacks the technological capabilities of other countries, but the labor force is young and close to China, so at first it seemed relatively painless. But since then, the pandemic has forced tech giants to brake. Thanks to the ever-changing restrictions and demands associated with COVID-19 (and Vietnam’s limited engineering resources and half-baked notebook computer supply chain), Apple manufactures MacBooks, iPads, and AirPods to Vietnam. Migration has been put on hold, according to sources Nikkei Asia.. Amazon’s smart speakers, smart doorbells, and security cameras have also stalled as northern Vietnam scrambled to address the COVID-19 surge through stricter guidelines.

People close to this situation report that Apple will continue to promote the production of 20% of AirPods in Vietnam at a later date. An executive with a supply chain servicing Apple and Google Nikkei Asia Introducing new products into Vietnam’s manufacturing chain is difficult compared to products already produced elsewhere, mainly due to travel restrictions between Vietnam and China. The supplier had a hard time sending engineers to Vietnam to assist in setup and implementation. Many insist on waiting for accommodation for workers. This may allow new releases to continue to be manufactured in China.

Where the device is manufactured does not necessarily affect casual consumers, but such a slowdown in production can easily affect the ability of a company to sell a device to the same scale it previously predicted or sold. It may affect you. Apple, Google, and Amazon aren’t the only companies affected by pandemic-related production delays. Tesla’s technology. Cybertruck On average Computer chip It has been affected and will be in the near future.

Source: Apple, Google Production Shift to Vietnam Slowed by COVID-19