The holidays are barely over and there are already some interesting rumors just before the turn of the year – this time it’s about AirPods production.
According to a new report from The Information, two AirPods producers are planning to move from China to Vietnam. Both Clover Luxshare Precision and Goertek manufacture important components for Apple's AirPods. The reason for the move is the ongoing trade war between the USA and China - according to the report. Although the USA has reached an agreement with China to prevent additional trade tariffs, both Apple suppliers want more security. However, they can only get this by moving production to another country. According to The Information, both companies are currently negotiating with banks - several hundred million dollars are said to be at stake. At the same time, the report emphasizes that initial test productions were successful and that general labor costs are around a third of the Chinese costs.
doubling of production volume
The workforce in Vietnam is comparable to fresh engineering graduates - according to the paper. Another motivation is promised subsidies and tax breaks from the Vietnamese government. The move is not really surprising, as many companies are moving their production out of the Middle Kingdom in order to gain more security in the ongoing trade war between China and the USA. In addition to outsourcing to Vietnam, production is also to be doubled - according to The Information. This confirms an earlier report that Apple has already ordered a general doubling of production volume - read more here. You don't have AirPods yet? Then take a look at our Apfelpatient Amazon Shop over. (Photo by Eremin / Bigstockphoto)
