A few days ago, a report from Nikkei Asia revealed that Apple Watch and MacBook models would be manufactured in Vietnam for the first time. According to a new report today, Apple Watch Series 8 is already being assembled in Vietnam, and suppliers are expected to increase production for the lineup ahead of its launch.
More than half of Apple Watch Series 8 units will be made in Vietnam
In a new tweet from TF Securities analyst Ming-Chi Kuo, the analyst revealed that Apple Watch production in Vietnam is already underway. In fact, a major Apple Watch supplier has shipped from the region since the launch of the Apple Watch Series 7.
The media reported that Apple Watch would start mass production in Vietnam. But it’s already shipping, as I know. Luxshare ICT, Apple Watch’s major assembler, has production lines in China and Vietnam and has shipped from Vietnam since Apple Watch 7.
In addition to this, suppliers in Vietnam are expected to ramp up production ahead of the upcoming Apple Watch Series 8 launch. In fact, more than half of the units of the upcoming lineup will be manufactured in Vietnam. Kuo previously revealed that Luxshare-ICT would be the NPI supplier for the standard Series 8 model as well as the new rugged edition.
I estimate the shipment proportion of Apple Watch 8 from Vietnam will significantly increase to 60-70%. Luxshare is the leader in building production lines in non-China countries among Chinese Apple suppliers.
The analyst concludes by saying Apple could benefit from moving production of the Apple Watch from China to Vietnam. It could help protect the tech giant from the “deglobalization trend.”
This first mover advantage is conducive to Luxshare’s long-term development amid the deglobalization trend.
Apple is planning to launch three new Apple Watch models in 2022. These will include the standard Apple Watch Series 8, a budget-friendly Apple Watch SE, and a new “Pro” edition. The external design of the Apple Watch Series 8 model will be virtually the same as the Apple Watch Series 7. Both will sport 41mm and 45mm displays and the same dimensions.
All models in Apple Watch Series 8 lineup will feature the S8 processer. Last year’s Apple Watch models come equipped with the S7 chip but the processor features the same specifications as the S6 chip, making the chip two years old.