Apple has been looking to increase the geographic diversity of its supply chain for some time, and moving some production of the AirPods line to Vietnam is a major step for the company.
Apple reportedly began trial production of regular AirPods in Vietnam more than a year ago, and in December last year it was reported that Apple's AirPods suppliers were seeking financing to expand production.
Initially, those plans also included the upcoming AirPods 3, but those plans have changed. According to a new report from Nikkei Asia, Apple will begin mass-producing the third-generation AirPods in China instead of Vietnam due to disruptions caused by the coronavirus outbreak.
Apple's plans to bring some MacBook and iPad production to Vietnam have also been put on hold due to a lack of engineering resources and supply chain shortages caused by tighter border controls between China and Vietnam, the report said.
The upcoming third-generation AirPods are expected to adopt a similar form factor to the AirPods Pro, with a new case, shorter stems, and perhaps replaceable ear tips.
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