Apple Vision Pro Production Moves to Vietnam Amidst Global Trade Dynamics
Cupertino, California – October 22, 2025 – The updated Apple Vision Pro, equipped with the new M5 chip, is now being assembled in Vietnam, a notable move reflecting the company’s efforts to diversify its supply chain. This represents a departure from the initial manufacturing location in China. The change is evident in the product’s packaging, now labeled “Product of Vietnam.”
The shift in assembly location occurs as Apple navigates complex geopolitical pressures and a desire to reduce reliance on a single manufacturing hub.The original vision Pro was manufactured by Luxshare Precision Industry Co., a China-based company also involved in AirPods production.
A Delicate Balancing Act
This strategic relocation comes at a time of heightened commercial tensions between the United States and China. Concurrently, the tech giant faces calls from both nations to demonstrate commitments to domestic manufacturing. Apple Chief Executive Officer, Tim Cook, recently concluded a visit to China, reaffirming the company’s continued investment in the region, even as it diversifies elsewhere.
Since the onset of trade disputes earlier this year,Apple has been strategically relocating production of U.S.-bound devices to nations including Vietnam,India,Thailand,and Malaysia. However, much of the company’s overall manufacturing remains concentrated in China to accommodate global demands.
production Volume and strategic Considerations
Experts suggest the relatively limited production volume of the Vision Pro, coupled with the minor hardware updates in the M5 version, likely favored a move to Vietnam. This allows Apple to test and refine its supply chain diversification without disrupting large-scale production runs.
Interestingly, the newly released Dual Knit Band, an accessory for the Vision Pro, continues to be manufactured in China. This indicates a tiered approach to supply chain restructuring, where certain components or accessories may still benefit from established Chinese manufacturing capabilities.
This move is seen by industry analysts as a symbolically important step in Apple’s long-term strategy to reduce its dependence on China for advanced manufacturing. The company has also signaled plans to expand its portfolio of wearable and head-mounted devices in the coming years.
| Component | Original Production Location | Current Production Location |
|---|---|---|
| Apple Vision pro (M5) | China | Vietnam |
| Dual Knit Band | N/A | China |
did You Know? Apple has invested over $100 billion in U.S. manufacturing over the past decade, demonstrating a commitment to domestic production alongside its global diversification strategy.
pro Tip: Diversifying supply chains is a common strategy for multinational corporations to mitigate risk associated with geopolitical instability, natural disasters, and economic fluctuations.
The Evolution of Apple’s Supply Chain
Apple’s supply chain has been a subject of intense scrutiny and continuous evolution. Initially reliant largely on manufacturing within the United states, the company gradually shifted a significant portion of its production to Southeast Asia, particularly China, in the 1990s and 2000s. This transition was driven by lower labor costs and the progress of robust manufacturing ecosystems.
However, in recent years, a growing awareness of the risks associated with concentrating production in a single country – including geopolitical tensions, trade wars, and supply chain disruptions – has prompted Apple to reassess its strategy. The COVID-19 pandemic, with its widespread disruptions to global logistics, further accelerated this shift towards diversification.
Apple’s current approach involves a multi-pronged strategy that includes expanding its manufacturing footprint to countries like Vietnam, India, and Brazil; investing in domestic manufacturing in the United States; and fostering closer relationships with multiple suppliers to reduce its reliance on any single provider.
Frequently Asked Questions About Apple and Supply Chain Diversification
- What is driving Apple’s move to manufacture products in Vietnam? Apple is diversifying its supply chain to reduce reliance on China and mitigate risks associated with geopolitical tensions and trade disputes and supply chain logistics.
- Will Apple wholly stop manufacturing products in China? While Apple is diversifying, it is likely to maintain a significant manufacturing presence in China due to its established infrastructure and scale.
- How does this affect the cost of apple products? Supply chain diversification can perhaps impact costs, but Apple aims to optimize its operations to minimize any price increases for consumers.
- What other companies are diversifying their manufacturing? Many major global companies, including Samsung, Dell, and Google, are also actively diversifying their manufacturing bases.
- What is the importance of supply chain resilience? Supply chain resilience is crucial for businesses to withstand disruptions and maintain business continuity in an increasingly unpredictable global environment.
