Apple is apparently considering moving a sizable portion of its iPad engineering staff to Vietnam, which would be a revolutionary move that would completely change the way the company produces its products. According to a recent report by Nikkei Asia, the Cupertino-based tech giant is working with China’s BYD, a manufacturing powerhouse and a significant iPad assembler, to set up new product introduction (NPI) resources in Vietnam.
This strategic move signifies a notable expansion of Apple’s manufacturing footprint in Vietnam, building on its previous efforts to shift iPad assembly capacity to the country in 2022. At that time, Apple partnered with the same Chinese conglomerate to mitigate the impact of supply disruptions caused by stringent lockdown restrictions in Chinese iPad production plants.
What sets this development apart is that, for the first time, Apple is relocating NPI resources for a core device like the iPad to Vietnam. NPI involves Apple working closely with suppliers on the design and development of new products, ensuring that all blueprints are meticulously executed in a new manufacturing facility. This shift demands substantial resources from both Apple and its collaborating partner, BYD.
Traditionally, the majority of Apple’s NPI for the iPad was conducted in China, with experts collaborating closely with Cupertino engineers to enhance the products’ features and functionalities. By diversifying its supply chain and embracing Vietnam as a significant production hub, Apple aims to reduce its reliance on China in the manufacturing process.
According to insights from Nikkei Asia, engineering verification for test production of the new iPad model could commence as early as February next year. However, the eagerly anticipated tablet is not expected to hit the market until the second half of 2024, underscoring the meticulous planning and execution involved in this manufacturing transition.
It’s worth noting that Apple is not limiting its exploration of alternative production hubs to Vietnam alone. The tech giant has previously shifted NPI resources for an iPhone model to India, signaling a broader strategy to diversify its manufacturing locations. Additionally, Apple has ambitious plans to substantially increase the production of iPhones in India over the next two years, further solidifying its commitment to a globally diversified supply chain.