Apple’s AirPods will likely be made in Vietnam

China’s Luxshare Precision and Goertek are the two manufacturers of AirPods for Apple. According to a recent report, both manufacturers are negotiating with banks to seek funding, in order to expand production in Vietnam.

The two Chinese manufacturers need hundreds of millions of dollars in funding to move their production lines from China to Vietnam. Amid the ongoing US-China trade war, Luxshare Precision and Goertek have begun testing production of AirPods outside of China.

According to the report, placing production lines in Vietnam is “natural”. Because components from China can easily be transported to Vietnam by land, sea or air. Labor costs in Vietnam are only 1/3 of that in China.

Since its launch in 2016, Apple’s AirPods wireless headphones have become a very successful product, so much that the supply doesn’t meet market demand. After the launch of AirPods 2 and AirPods Pro, both had very high sales. Apple had to ask Luxshare Precision to double AirPods Pro‌ production.

Both Luxshare Precision and Goertek have grown strongly thanks to AirPods, shares of these two manufacturers have tripled in the stock market since the beginning of this year.

References: macrumors