Apple Unveils 'Smart Home' Products in Vietnam Amidst Geopolitical Shift

Apple is set to unveil a new range of 'smart home' products in Vietnam, marking a significant shift in its production strategy. The lineup includes a multimedia hub, surveillance cameras, and a desktop robot, assembled by Chinese electric vehicle manufacturer BYD.

Apple's move comes as a response to geopolitical tensions and supply chain disruptions. The company currently produces AirPods, Apple Watch, and Mac in Vietnam, but faces a 20% import duty on goods entering the US. This new venture aims to diversify its production geography.

The decision is also a reaction to the US-China trade dispute, which has increased costs for Apple and other companies. In 2018, former US President Donald Trump promised to impose additional 100% tariffs on all Chinese goods in response to Beijing's decision to impose export controls on all goods produced in China.

Despite Trump's efforts to restrict production in India, Apple has been investing in the country. Apple's revenue in India reached nearly $9 billion in the last fiscal year, a 13% increase from the previous year, with most sales coming from iPhone and growing demand for MacBook. Apple is expanding iPhone production in India for the American market, demonstrating a comprehensive approach to production diversification.

Apple's expansion into Vietnam for its 'smart home' product lineup is a strategic move to mitigate risks associated with geopolitical tensions and trade disputes. This shift in production, handled by BYD, signals Apple's commitment to diversifying its supply chain and maintaining its competitive edge in the global market.