Apple (NASDAQ:AAPL) is planning to expand its manufacturing operations in Vietnam to build the next generation of smart home devices, including a tabletop robot and a home hub display, marking a major shift away from reliance on China’s supply chain, Bloomberg reported, citing people familiar with the matter.
The iPhone maker is teaming up with China’s BYD (OTCPK:BYDDF) for the final assembly, testing, and packaging of these new smart home products, including the home hub and robot, in Vietnam.
The company already makes iPads, AirPods, Apple Watches, Macs, and HomePods in the country, and products manufactured in Vietnam will face a 20% tariff in certain markets. It is also planning to expand its manufacturing of iPads with BYD in Vietnam, according to the report.
Apple and BYD did not immediately respond to Seeking Alpha’s request for comment.
The company plans to produce several new home devices, including indoor security cameras and a smart display designed to control appliances and act as a central home hub. A more advanced tabletop robot, capable of moving with motors and sensors, is expected to follow in 2027.
The home hub display, initially planned for March 2025, has been delayed to spring 2026 due to postponements in AI software development. Indoor security cameras are slated for late 2025 release.
Traditionally, the company built new products in China; however, now these three new devices are set to be built in Vietnam. This initiative seems a part of Apple’s (NASDAQ:AAPL) broader effort to diversify its supply chain amid ongoing U.S.-China trade tensions and tariff exposure.