Apple could be relocating significant iPad engineering resources to Vietnam

Apple may be considering setting up a new production center for some of its iPad models in Vietnam. According to a recent report from Nikkei Asia, the Cupertino-based tech giant is collaborating with China's BYD, a manufacturing conglomerate and major iPad assembler, to establish new product introduction (NPI) resources in Vietnam. This is not the first time Apple has taken steps to relocate its iPad assembly capacity to Vietnam. In 2022, the company worked with the same Chinese conglomerate to shift it to Vietnamese factories to mitigate the effect of supply disruptions caused by strict lockdown restrictions in Chinese iPad production factories.

However, this is now the first time that Apple has moved NPI resources from a primary device like the iPad to Vietnam. NPI refers to Apple's practice of working with suppliers on the design and development of new products, ensuring that all plans are executed to the standards required in a new manufacturing facility. As might be expected, this approach requires significant resources from both parties.

Until now, most of the company's NPI for the iPad was done in China, with experts working hand-in-hand with Cupertino engineers to embellish the products' new features and functionality. By diversifying its supply chain, the company is apparently trying to reduce its reliance on China as an important production hub.

Nikkei Asia also points out that technical verification for test production of the new iPad model may take place in February next year. Again, the new tablet will probably not be available until the second half of 2024.

Apple is considering countries other than Vietnam as an alternative production center for some of its products. For example, the Cupertino-based tech giant shifted some NPI resources for an iPhone model to India. Additionally, let's not forget that it intends to significantly increase the number of iPhones manufactured in India over the next two years.