Apple establishes Vietnam as its new industrial base for smart home devices and AI
Apple is taking a significant step in its industrial diversification strategy. The American giant is set to massively expand its production in Vietnam, marking the first time the country will serve as the main base for a brand-new range of products: smart home devices.
This decision comes in the context of rising geopolitical tensions, as trade conflicts and the risks of tariffs with China push Apple to mitigate its reliance on Chinese supply chains.
A Strategic Industrial Shift for Apple
Apple already produces several devices in Vietnam — including AirPods and some iPads — but this upcoming initiative is much more ambitious. The company now plans to fully manufacture and assemble a new range of smart home products on-site.
To facilitate this expansion, Apple is partnering with Chinese group BYD, a collaborator already involved in iPad assembly. BYD will handle the assembly, testing, and packaging of new devices in Vietnam while also ramping up iPad production in the country.
The First Product: A 7-Inch Home Hub Display
The initial product from this new line will be a connected 7-inch screen, designed as a control center for smart home management. This “Home Hub Display” will allow users to manage devices, stream music, and make FaceTime calls.
Featuring a more intelligent Siri and advanced AI capabilities, it will offer adaptive interfaces and enhanced facial recognition.
Its launch, originally scheduled for 2025, has been postponed to spring 2026. The product will compete with Amazon’s Echo Show and Google’s Nest Hub.
More Products in the Pipeline
Apple’s ambitions don’t stop there. By the end of 2026, the company intends to launch an indoor security camera, designed to seamlessly integrate into the HomeKit ecosystem. Then, in 2027, Apple plans to unveil a tabletop robotic companion equipped with a 9-inch display mounted on a motorized arm, capable of following users and interacting using AI.
This latter device, still under development, could become one of Apple’s most ambitious and expensive products.
Siri Enters a New Era
A next-generation Siri will accompany these launches starting March 2026. The voice assistant will feature an improved AI engine, enhanced contextual understanding, and more natural web-based responses.
It will also be capable of more precise control over applications and connected devices.
This expansion aligns with Apple’s strategy of geographical rebalancing. Besides Vietnam, the company is investing in India, Malaysia, and Thailand to secure its global production. However, the 20% tariffs on Vietnamese imports still pose a logistical hurdle for the company, which will need to adjust its costs to maintain profit margins.
