In the factory workshop in Vietnam, not only are Apple’s new smart home products being assembled, but also the strategic blueprint for its global supply chain diversification.
Apple is collaborating with its long-term partner BYD to produce a new generation of smart home devices in Vietnam, including a home hub display and an advanced desktop robot.
This marks the first time Apple has fully arranged the initial production of a new product category outside of China.
This collaboration is a key step in Apple’s supply chain diversification strategy, covering the entire processes of final assembly, testing, and packaging. Apple plans to launch an indoor security camera by the end of 2025, the smart home hub in spring 2026, and a desktop robot equipped with motors and sensors by 2027.
01 Strategic Transformation: Accelerating Supply Chain Diversification
According to Bloomberg, Apple is “preparing to expand its manufacturing operations in Vietnam” to enter the smart home product market while continuing to reduce its reliance on Chinese manufacturing.
Previously, Apple typically produced new products in China first before expanding or relocating production to other countries.
Now, Apple is directly placing the production of a new product category in Vietnam, demonstrating theaccelerated advancement of its supply chain diversification strategy.
This decision is driven by multiple considerations. Increasing geopolitical tensions, ongoing tariff threats, and risks of supply chain disruptions are significant reasons for Apple to diversify production away from China.
A Jefferies analysis report indicates that although Apple has shifted some iPhone production to India to mitigate risks, it still needs to export approximately 9 million iPhones directly from China to the U.S. market in fiscal year 2026.
02 Product Layout: The Smart Home Trio Unveiled
Apple has planned three smart home products in Vietnam, forming the core lineup for its entry into the smart home market.
Home Hub is seen as the control center of the smart home, equipped with a 7-inch display for controlling appliances. It is reported that Apple has developed two parallel versions.
The model codenamed J490 is mounted on a speaker stand, while J491 supports wall mounting, both integrating a FaceTime camera and a custom operating system.
This product was originally scheduled for release in March 2025, but due to the development period of AI software, it has been postponed tospring 2026, with an expected price of around$350.
Indoor Security Camera, codenamed J450, is expected to debut by the end of 2025 and is one of the first entry products into Apple’s smart home ecosystem.
Desktop Robot is the most eye-catching product, equipped with a9-inch screen and robotic arm, integrating Apple Intelligence and an optimized version of Siri.
This robot is expected to be released in 2027, utilizing motors and sensors for movement and control functions.
03 Collaboration Model: BYD’s Role
In terms of collaboration model, Apple has chosen to partner withBYD to complete the production of these smart home products.
BYD will be responsible forthe entire process of final assembly, testing, and packaging, which is the last step before the devices are delivered to customers.
Although BYD is a well-known company in the electric vehicle sector, its involvement in Apple’s hardware supply chain has been increasing in recent years.
Additionally, Apple plans to collaborate with BYD to expand iPad production in Vietnam, indicating a deepening partnership between the two companies.
04 Vietnam’s Role: Elevating Supply Chain Status
Vietnam’sstrategic position in Apple’s global supply chain is increasingly rising.
Currently, Apple produces various products in Vietnam, including iPads, AirPods, Apple Watches, Macs, and HomePods.
The addition of smart home device production further solidifies Vietnam’s role as an important manufacturing hub for Apple.
However, producing in Vietnam also faces challenges. Reports indicate that products made in Vietnam may face import tariffs of up to20% in some markets.
This tariff cost is a factor that Apple must weigh in its process of reducing reliance on the Chinese supply chain.
05 Market Considerations: AI Ambitions in Smart Home
Apple’s smart home strategy clearly incorporates AI elements.
The desktop robot will integrateApple Intelligence and an optimized version of Siri, supporting large language models (LLM), showcasing Apple’s ambitions in the practical home AI field.
The delayed release of the home hub is partly due to the lag in the development of underlying AI functionalities.
The new version of Siri will allow users to interact more naturally and gain deeper control over devices in the Apple ecosystem.
This initiative by Apple is seen as a direct challenge to Amazon and Google’s dominance in the smart home sector.
By integrating AI capabilities into its hardware ecosystem, Apple aims to create a more competitive smart home product matrix.
As the global tech industry reconfigures its supply chain layouts, Apple’s move in Vietnam is undoubtedly of symbolic significance.
From the home hub to the desktop robot, the success of these new products will depend not only on the maturity of their AI capabilities but also on Apple’s ability to maintain profits amid changing global trade environments.
With the first product expected to launch by the end of 2025, Apple’s smart home strategy will face its first market test.