Apple, Xiaomi move more production to Vietnam
Faced with continued Covid-19 lockdown-related supply disruptions, Apple is moving some iPad production from China to Vietnam, while Chinese electronics giant Xiaomi has just delivered the first batch of its made-in-Vietnam smartphones, the companies announced.
Apple has already told its suppliers last month that it seeks to expand contract manufacturing outside of China and is looking at Vietnam and India as potential new production hubs.
The company is also taking other measures to soften the blow of supply issues in China. As a preparation, Apple has reportedly told its suppliers to begin stockpiling specific components such as printed circuit boards and mechanical and electronics parts. These stockpiles could be dipped into if further shutdowns and disruptions happen at production sites near Shanghai, an area where Apple has many contract manufacturing partners.
Apple said it does not expect that Vietnam may not be subject to potential further lockdowns and other disruptions itself, but by diversifying manufacturing across multiple regions, the company is more capable to stave off the most worrisome disruptions.
In search for reliable supply chains
In Xiaomi’s case, the company is also seeking more stable supply conditions by moving parts of its production to Vietnam.
Certain models of its smartphones there are made by DBG Technology, a subsidiary of Hong Kong’s DBG Electronics Investment Limited, at a factory in northern Thai Nguyen Province.
Besides supplying the local market, the phones would also be exported to some Southeast Asia markets such as Malaysia and Thailand, a representative of Xiaomi Vietnam said.
Xiaomi is currently the second largest smartphone maker in Vietnam behind Samsung, accounting for 20.6 per cent of market share in the first quarter this year, according to data from industry analysis firm Counterpoint.
Otherwise, Xiaomi smartphones are mostly made in China and India by its manufacturing partners, including Foxconn, DBG Technology, BYD Electronics and Flex International (formerly Flextronics).
Faced with continued Covid-19 lockdown-related supply disruptions, Apple is moving some iPad production from China to Vietnam, while Chinese electronics giant Xiaomi has just delivered the first batch of its made-in-Vietnam smartphones, the companies announced. Apple has already told its suppliers last month that it seeks to expand contract manufacturing outside of China and is looking at Vietnam and India as potential new production hubs. The company is also taking other measures to soften the blow of supply issues in China. As a preparation, Apple has reportedly told its suppliers to begin stockpiling specific components such as printed circuit boards...
Faced with continued Covid-19 lockdown-related supply disruptions, Apple is moving some iPad production from China to Vietnam, while Chinese electronics giant Xiaomi has just delivered the first batch of its made-in-Vietnam smartphones, the companies announced.
Apple has already told its suppliers last month that it seeks to expand contract manufacturing outside of China and is looking at Vietnam and India as potential new production hubs.
The company is also taking other measures to soften the blow of supply issues in China. As a preparation, Apple has reportedly told its suppliers to begin stockpiling specific components such as printed circuit boards and mechanical and electronics parts. These stockpiles could be dipped into if further shutdowns and disruptions happen at production sites near Shanghai, an area where Apple has many contract manufacturing partners.
Apple said it does not expect that Vietnam may not be subject to potential further lockdowns and other disruptions itself, but by diversifying manufacturing across multiple regions, the company is more capable to stave off the most worrisome disruptions.
In search for reliable supply chains
In Xiaomi’s case, the company is also seeking more stable supply conditions by moving parts of its production to Vietnam.
Certain models of its smartphones there are made by DBG Technology, a subsidiary of Hong Kong’s DBG Electronics Investment Limited, at a factory in northern Thai Nguyen Province.
Besides supplying the local market, the phones would also be exported to some Southeast Asia markets such as Malaysia and Thailand, a representative of Xiaomi Vietnam said.
Xiaomi is currently the second largest smartphone maker in Vietnam behind Samsung, accounting for 20.6 per cent of market share in the first quarter this year, according to data from industry analysis firm Counterpoint.
Otherwise, Xiaomi smartphones are mostly made in China and India by its manufacturing partners, including Foxconn, DBG Technology, BYD Electronics and Flex International (formerly Flextronics).
