Apple is planning to allocate resources for the development of iPad products in Vietnam for the first time, according to sources from Nikkei.

Nikkei reports that Apple is working with BYD (China), the main iPad assembly partner, to shift New Product Introduction (NPI) resources to Vietnam.

NPI (New Product Introduction) is the process of introducing new products, typically involving steps such as research and development, testing, sample production, and ultimately mass production and product marketing.

This marks the first time Apple is transferring NPI resources to Vietnam for such a core device. Sources indicate that the technical verification process for producing test samples of the new iPad model will begin in mid-February 2024. The model could be ready for launch in the latter half of the following year.

BYD was also Apple’s first supplier to help the U.S. tech giant move the iPad assembly line to Vietnam in 2022. The shift in NPI technical resources will focus on lower-tier models rather than the high-end iPad Pro.

NPI requires significant resources from both technology companies and suppliers, such as engineers and investment in laboratory equipment to test new features and functions. Most of Apple’s NPI is conducted in China to leverage the country’s decades-long hardware manufacturing expertise.

However, Apple is currently reallocating NPI resources. Alongside Vietnam, the company also plans to transfer some NPI processes for the iPhone to India.

Apple is the world’s largest tablet manufacturer, holding 36.6% in the first three quarters of 2023, according to IDC data. According to Counterpoint Research, approximately 10% of total iPads are produced in Vietnam this year, with the majority still in China.

Vietnam has emerged as a significant technology manufacturing hub for Apple outside of China. The company has urged suppliers to build capacity here for almost all its products, except for the iPhone – from AirPods and MacBook to Apple Watch and iPad.

Experts note that having NPI resources means that centers outside China will become genuine alternative production bases. Ivan Lam, a technology analyst at Counterpoint Research, assesses Vietnam’s role as crucial and with the potential to become one of the next global manufacturing centers. “Apple’s recent supply chain map demonstrates the capabilities of manufacturing in Vietnam for producing iPads and expanding the scale,” he said.

According to this expert, with improved production conditions and reduced difficulty in iPad manufacturing, including modularization and NPI, Vietnam’s transition to a true manufacturing center is only a matter of time.

Bryan Ma, Vice President of Customer Devices Research at IDC, notes that Vietnam is benefiting from the industry’s diversification efforts, not only in tablets but also in more complex personal computers. “The entire ecosystem moving with assemblers is important, especially with laptops, where there are more individual parts,” he said.

Vincent Chen, President of CTBC Securities Investment Services and a seasoned technology analyst, notes that in recent years, India and Vietnam have emerged as two very important manufacturing ecosystems. “But it is also clear that despite U.S.-China tensions, Apple will still cooperate closely with Chinese suppliers during the supply chain transition,” he said.

Source: VnExpress