Apple AirPods Suppliers Seeking Funding to Expand Production in Vietnam

[MacRumors]

Luxshare Precision and Goertek, two Chinese companies who create components for Apple's AirPods, are in talks with banks for funding to expand production in Vietnam, reports The Information.

The two companies are seeking "hundreds of millions of dollars" to begin moving some production out of China amid continued trade tensions between the United States and China, and have already been trialing AirPods production in Vietnam.

Though there has been a recent deal between the U.S. and China to stave off additional tariffs, companies in China have no guarantee the deal will last, leading to uncertainty.

According to The Information, manufacturing in Vietnam is a "natural alternative" for Apple, given that Chinese components can be transported to Vietnam via land, sea, or air, and labor costs are roughly one-third of China's. Vietnam's workforce is also said to be "flush with fresh engineering graduates." The Vietnamese government is offering subsidies and tax breaks to manufacturers who want to set up in the country.

Since their 2016 launch, Apple's AirPods have exploded in popularity and there have been many months where Apple's available AirPods supply has been unable to meet demand. Just this year, Apple released the AirPods 2 and the AirPods Pro, both of which have seen strong sales so far. Apple recently asked Luxshare Precision to double production of the AirPods Pro given the "much higher" than expected demand.

Both Luxshare Precision and Goertek have seen strong growth thanks to the AirPods, with their stock tripling on the Shenzhen Stock Exchange since the beginning of the year.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple AirPods Suppliers Seeking Funding to Expand Production in Vietnam

 

[farewelwilliams]

too bad the quality of the hinge on the cases has gone downhill since the first AirPods.

put your thumb and index finger on the sides of the lid and wiggle it. you'll hear some noise (something that wasn't in the first AirPods). another thing to do is tilt the case upside down when the lid is open. the lid will lose it's rigidness and possibly close. AirPods 1 lid stayed open no matter how much you tilt the case.

 

[zorinlynx]

Why the hell can't we consider countries for manufacturing that don't have oppressive governments and horrible human rights issues?

Can we stop rewarding governments for being horrible???

 

[69Mustang]

Can we stop rewarding governments for being horrible???

"Only when it positively affects our profits."
- companies' typical attitude from time immemorial

 

[mlrproducts]

I got AirPod pros yesterday - never owned any AirPods before - and I was shocked at the poor quality of construction. Seams on the AirPods themselves that don’t line up perfectly (and will collect dirt and turn into black lines very quickly) and the similar nature of uneven seams in the case and how the lid doesn’t really stay open.
I have newer MBPs and I’ve not said this before, but WTF apple with this crappy QC? Ugh.

 

[Bandaman]

I got AirPod pros yesterday - never owned any AirPods before - and I was shocked at the poor quality of construction. Seams on the AirPods themselves that don’t line up perfectly (and will collect dirt and turn into black lines very quickly) and the similar nature of uneven seams in the case and how the lid doesn’t really stay open.
I have newer MBPs and I’ve not said this before, but WTF apple with this crappy QC? Ugh.

Did you buy a knock off?

 

[zorinlynx]

Did you buy a knock off?

Yeah, there's a million knockoffs out there, and they're flooding the market because Apple can't keep up with demand and people are desperate. One should always buy AirPods directly from Apple.

 

[ScottishDuck]

Why the hell can't we consider countries for manufacturing that don't have oppressive governments and horrible human rights issues?

Can we stop rewarding governments for being horrible???

Guess America isn’t an option then

 

[junkw]

Guess America isn’t an option then

explain please

 

[zorinlynx]

Guess America isn’t an option then

We definitely have been fowling things up lately, especially with ICE, but we're nowhere near as bad as countries like China and Vietnam.

 

[fairuz]

We definitely have been fowling things up lately, especially with ICE, but we're nowhere near as bad as countries like China and Vietnam.

What's so oppressive about Vietnam? From what my friends say, it just sounds like a typical poor country, not at all like China.

 

[Hazmat401]

Why the hell can't we consider countries for manufacturing that don't have oppressive governments and horrible human rights issues?

Can we stop rewarding governments for being horrible???

Capitalism and Morality don’t mix bruh

 

[44267547]

Yeah, there's a million knockoffs out there, and they're flooding the market because Apple can't keep up with demand and people are desperate. One should always buy AirPods directly from Apple.

I’d say this isn’t accurate. There are plenty of reputable third-party retailers/online distributors that I would purchase the AirPods without hesitation. Do your homework, know the source you’re purchasing the AirPods from and understand the return policy and customer service being a huge contributor standing behind the consumer.

 

[sinsin07]

I got AirPod pros yesterday - never owned any AirPods before - and I was shocked at the poor quality of construction. Seams on the AirPods themselves that don’t line up perfectly (and will collect dirt and turn into black lines very quickly) and the similar nature of uneven seams in the case and how the lid doesn’t really stay open.
I have newer MBPs and I’ve not said this before, but WTF apple with this crappy QC? Ugh.

Unfortunately nothing new here.
These types of quality issues have been reported in Macrumors since 2016:
Macrumors 12-25-16: Line/Gap on AirPod
and 2017:
Macrumors 2017: Apple AirPods seam
also on the web:
Apple Airpod Seams

 

[Kabeyun]

I got AirPod pros yesterday - never owned any AirPods before - and I was shocked at the poor quality of construction. Seams on the AirPods themselves that don’t line up perfectly (and will collect dirt and turn into black lines very quickly) and the similar nature of uneven seams in the case and how the lid doesn’t really stay open.

If what you’re saying is both true and not a result of your inadvertently purchasing some knock offs, your experience is exceptional. Very exceptional.

And see my comment below.

 

[Hazmat401]

I’d say this isn’t accurate. There are plenty of reputable third-party retailers/online distributors that I would purchase the AirPods without hesitation. Do your homework, know the source you’re purchasing the AirPods from and understand the return policy and customer service being a huge contributor standing behind the consumer.

Be careful what you wish for

~Apple introduces the all new 2020 "Aluminum AirPods" in Space grey and White Gold and "Airpod Pro Titanium"

Starting at $499 and $799

And these are coming....

 

[boswald]

I got AirPod pros yesterday - never owned any AirPods before - and I was shocked at the poor quality of construction. Seams on the AirPods themselves that don’t line up perfectly (and will collect dirt and turn into black lines very quickly) and the similar nature of uneven seams in the case and how the lid doesn’t really stay open.
I have newer MBPs and I’ve not said this before, but WTF apple with this crappy QC? Ugh.

That sounds like a dud. I just got a set of new AirPods for Christmas and didn’t notice any of those faults. Are you sure they’re genuine?

 

[Kabeyun]

Interesting that not a single comment so far as touched on the point of this thread, which is that AirPod pros are a runaway success, and deservedly so.

 

[PickUrPoison]

I got AirPod pros yesterday - never owned any AirPods before - and I was shocked at the poor quality of construction. Seams on the AirPods themselves that don’t line up perfectly (and will collect dirt and turn into black lines very quickly) and the similar nature of uneven seams in the case and how the lid doesn’t really stay open.
I have newer MBPs and I’ve not said this before, but WTF apple with this crappy QC? Ugh.

Contact Apple, they’ll be happy to exchange them. Unless they’re fakes... then you’re on your own 🤷‍♂️

 

[44267547]

I don’t get it, maybe I’m just more keen to noticing details, but I could easily spot ‘fake AirPods’ that were not genuine. If I had a question the integrity of the AirPods if they were legitimate or not, simply contact Apple with the serial number associated on the AirPods themselves.

Not to mention, the packaging shouldn’t be that difficult to differentiate from either. Apples packaging is pretty specific for the AirPods, it has unique little details in terms of how they package the item/different markings/seals on the box.

 

[ksec]

The whole point of moving out of China is to do less business and less reliant on them.
What is the point if Apple is actively Helping and Funding Chinese companies to move out of China and continue to do business with them.

 

[predation]

I got $5 on it.

 

[31 Flavas]

Interesting that not a single comment so far as touched on the point of this thread, which is that AirPod pros are a runaway success, and deservedly so.

You’re adorable. You think Apple is going to be given credit for the success of the AirPods when the iPod, yes iPod, still isn't given any credit? I mean, at best the iPhone is only given credit on how not to do a phone. I mean, its not like the iPhone just Thanos snapped all phone designs before it to ash and zombified Blackberry into the living dead.

I mean, just be realistic here. Apple is never going to be given credit for anything. The failures highlighted. And otherwise will always be placed on an ivory pedestal and given unrealistic and undesirable standards to achieve - and even were they to be achieved, lets say all Apple products being 100% produced in the US using 100% green energy and being 100% repairable - the complaints would just be about how much they now cost, their **** quality, and probably how cancer is being caused by the windmills, the CO2’s used to produce them, and how many birds they’re killing or something.

 

[Kabeyun]

You’re adorable. You think Apple is going to be given credit for the success of the AirPods when the iPod, yes iPod, still isn't given any credit? I mean, at best the iPhone is only given credit on how not to do a phone. I mean, its not like the iPhone just Thanos snapped all phone designs before it to ash and zombified Blackberry into the living dead.

I mean, just be realistic here. Apple is never going to be given credit for anything. The failures highlighted. And otherwise will always be placed on an ivory pedestal and given unrealistic and undesirable standards to achieve - and even were they to be achieved, lets say all Apple products being 100% produced in the US using 100% green energy and being 100% repairable - the complaints would just be about how much they now cost, their **** quality, and probably how cancer is being caused by the windmills, the CO2’s used to produce them, and how many birds they’re killing or something.

Only on polarized message boards, mon ami. If you’re suggesting otherwise, how adorable that you think this is reality.

 

[PickUrPoison]

The whole point of moving out of China is to do less business and less reliant on them.
What is the point if Apple is actively Helping and Funding Chinese companies to move out of China and continue to do business with them.

That is not correct. The whole point of shifting some sources of supply out of China is to reduce labor costs and avoid the tariffs imposed by the unpredictable occupant of the White House.

And did I miss the part where Apple is actively helping and funding Chinese companies to move out of China? Well, in any case Apple will be happy to continue doing business with (some) Chinese suppliers if they can can supply product that won’t be subject to tariffs.