Apple is said to have begun shifting product development resources for the iPad to Vietnam for the first time in the country. The move is part of Apple’s strategy to manufacture more iPad units in Vietnam as it moves away from China (via Nikkei Asia).
Apple is collaborating with China’s BYD to transfer “new product introduction (NPI) resources to Vietnam,” reads the article. NPI is a development process where Apple works closely with its supply chain partners on the design and engineering of a new product and is localized to the country where said product will be assembled. The report notes that this is the first time that Apple is establishing NPI for a major product in Vietnam.
The first iPad model to benefit from Vietnam’s new NPI will begin the first trial of production tests by February 2024, the report adds. If everything goes to plan, the iPad will undergo mass production and market release in the second half of 2024. While the iPad model in question is not explicitly named, it is highly likely to be the 11th-generation entry-level iPad. Apple likes to use more affordable models to trial new production developments, and the non-sophisticated nature of the base iPad is perfect in this situation.
Developing an NPI requires significant resources from companies and their suppliers, including engineers and investments in testing equipment. Apple predominantly conducts its NPI operations in China, working closely with engineers in Cupertino to leverage the country’s extensive hardware manufacturing expertise. However, due to geopolitical turmoil, the company is reassessing this strategy which also includes expanding in India.
Looking forward, Apple is also said to expand NPI resources in Vietnam to all other products except the iPhone including AirPods, MacBook, and Apple Watch. Counterpoint Research estimates that 10% of all iPad models assembled this year were made in Vietnam. However, that number is likely to grow significantly next year if Vietnam’s NPI for iPad is successful.
The 11th-generation iPad was strongly rumored to launch by the end of this year, but is now looking to launch in the second half of 2024 as 2023 will be the first year that Apple doesn’t release a single new iPad model. The current 10th-generation iPad was released in October 2022, with a new full-screen design, A14 Bionic chip, USB-C port, and a 12-megapixel camera.
