Luxshare Precision and Goertek, two Chinese companies who create components for Apple's AirPods, are in talks with banks for funding to expand production in Vietnam, reports The Information.
The two companies are seeking "hundreds of millions of dollars" to begin moving some production out of China amid continued trade tensions between the United States and China, and have already been trialing AirPods production in Vietnam.
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Though there has been a recent deal between the U.S. and China to stave off additional tariffs, companies in China have no guarantee the deal will last, leading to uncertainty.
According to The Information, manufacturing in Vietnam is a "natural alternative" for Apple, given that Chinese components can be transported to Vietnam via land, sea, or air, and labor costs are roughly one-third of China's. Vietnam's workforce is also said to be "flush with fresh engineering graduates." The Vietnamese government is offering subsidies and tax breaks to manufacturers who want to set up in the country.
Since their 2016 launch, Apple's AirPods have exploded in popularity and there have been many months where Apple's available AirPods supply has been unable to meet demand. Just this year, Apple released the AirPods 2 and the AirPods Pro, both of which have seen strong sales so far. Apple recently asked Luxshare Precision to double production of the AirPods Pro given the "much higher" than expected demand.
Both Luxshare Precision and Goertek have seen strong growth thanks to the AirPods, with their stock tripling on the Shenzhen Stock Exchange since the beginning of the year.
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Top Rated Comments
Guess America isn’t an option thenWhy the hell can't we consider countries for manufacturing that don't have oppressive governments and horrible human rights issues?
Can we stop rewarding governments for being horrible???
put your thumb and index finger on the sides of the lid and wiggle it. you'll hear some noise (something that wasn't in the first AirPods). another thing to do is tilt the case upside down when the lid is open. the lid will lose it's rigidness and possibly close. AirPods 1 lid stayed open no matter how much you tilt the case.
Yeah, there's a million knockoffs out there, and they're flooding the market because Apple can't keep up with demand and people are desperate. One should always buy AirPods directly from Apple.Did you buy a knock off?
I’d say this isn’t accurate. There are plenty of reputable third-party retailers/online distributors that I would purchase the AirPods without hesitation. Do your homework, know the source you’re purchasing the AirPods from and understand the return policy and customer service being a huge contributor standing behind the consumer.Yeah, there's a million knockoffs out there, and they're flooding the market because Apple can't keep up with demand and people are desperate. One should always buy AirPods directly from Apple.
Only on polarized message boards, mon ami. If you’re suggesting otherwise, how adorable that you think this is reality.You’re adorable. You think Apple is going to be given credit for the success of the AirPods when the iPod, yes iPod, still isn't given any credit? I mean, at best the iPhone is only given credit on how not to do a phone. I mean, its not like the iPhone just Thanos snapped all phone designs before it to ash and zombified Blackberry into the living dead.
I mean, just be realistic here. Apple is never going to be given credit for anything. The failures highlighted. And otherwise will always be placed on an ivory pedestal and given unrealistic and undesirable standards to achieve - and even were they to be achieved, lets say all Apple products being 100% produced in the US using 100% green energy and being 100% repairable - the complaints would just be about how much they now cost, their **** quality, and probably how cancer is being caused by the windmills, the CO2’s used to produce them, and how many birds they’re killing or something.