A couple of Apple suppliers that work on the AirPods are looking to gain financing that will help them expand operations outside of China.
The Information has the report this week. The publication states that two suppliers based out of China, Goertek and Luxshare Precision, are currently looking for additional financing to get some of their manufacturing duties into Vietnam. Both companies supply components for Apple’s truly wireless headphones, the AirPods.
The two supply partners are currently in talks with several banks for the additional funding, which is reportedly “hundreds of millions of dollars”. This would not move all of the production from these suppliers, but it could move most into Vietnam, outside of China. The move is due in part to fears that the trade wars between the United States and China will continue, and potentially get worse in the future.
According to the report, both companies have already started trialing AirPods production in Vietnam, so it would not be a wholly new venture for either.
The Information describes expanding into Vietnam for some suppliers as a “natural alternative” due to the fact that exporting parts from China to Vietnam can be handled relatively easily, and labor costs in Vietnam are roughly one-third of China’s.
This could be a good move all around, especially for consumers if this can help with availability after a new pair of the truly wireless headphones is introduced. The AirPods and AirPods Pro have become ridiculously popular for Apple, and that trend probably won’t change anytime soon.