Apple Inc. (AAPL.US) will debut a variety of smart home products next year, with Vietnam as its manufacturing base.

Apple Inc. (AAPL.US) is preparing to expand its manufacturing operations in Vietnam, both as part of its foray into the smart home market and as a reflection of the company's continued efforts to reduce its dependence on China. According to sources familiar with the matter, Apple Inc. plans to launch a series of new home devices next year, including indoor security cameras and a display screen that can control household appliances and serve as a central hub for the home. Subsequently, a more advanced desktop Siasun Robot & Automation is also set to debut in 2027, equipped with motors and sensors to enable autonomous movement. It is reported that these three products will all be manufactured in Vietnam, marking a significant shift in Apple Inc.'s production strategy for new product categories. In the past, Apple Inc. would typically manufacture new devices in China first before gradually expanding or transferring production to other regions. For the upcoming home control center and the subsequent Siasun Robot & Automation project, Apple Inc. will collaborate with the Chinese company BYD Company Limited. While BYD Company Limited is known for its electric vehicles, it has been playing an increasingly important role in Apple Inc.'s hardware supply chain in recent years. BYD Company Limited will be responsible for the so-called "final assembly, testing, and packaging" stage, which involves product assembly, testing, and preparation for shipment to customers and retail stores. Sources also indicate that Apple Inc. plans to expand iPad production in Vietnam in partnership with BYD Company Limited. Currently, the tech giant based in Cupertino, California has already been manufacturing some iPads, AirPods, Apple Watch, Mac computers, and early versions of HomePod in Vietnam. This expansion highlights Vietnam's growing importance as a production base for Apple Inc. With escalating political tensions with the GEO Group Inc., rising tariff risks, and increasing concerns about supply chain disruptions, Apple Inc. is gradually diversifying its supply chain and reducing its reliance on China. However, shifting production to Vietnam does not completely protect Apple Inc. from the impact of tariffs. According to the reciprocal tariff policy announced by the Trump administration on July 31, products imported from Vietnam will face a 20% tariff. At the same time, India has become an important production base for Apple Inc. to manufacture iPhones for the U.S. market, while some Mac products are manufactured in Malaysia and Thailand. It is reported that the hardware design for Apple Inc.'s new home central device a roughly 7-inch square display screen was completed a year ago. The product was originally scheduled to be released in March 2025, along with the new version of Siri voice assistant. However, due to delays in the development of underlying artificial intelligence software, Apple Inc. has also postponed the hardware launch. After canceling release plans for June and October, Apple Inc.'s current goal is to launch the device in spring 2026. The new version of Siri is expected to be released in March next year, allowing users to access answers from the internet just like using ChatGPT and have more precise control over in-app operations. This upgrade will enhance Siri's practicality in controlling home appliances, playing music, and communication functions in a home setting. The new home central device comes in two versions, codenamed J490 with the display screen mounted on a speaker base, resembling a HomePod mini with a screen; and J491 designed for wall mounting. The development of this version will be completed after the desktop version. Both devices will feature FaceTime cameras and interactive interfaces that adjust automatically based on user identities. The system can recognize users approaching the display, similar to the adaptive feature on Amazon.com, Inc.'s latest Echo devices. Apple Inc. is targeting a price of around $350 for this new device, which is about $50 higher than the full-size HomePod and significantly higher than similar products from Amazon.com, Inc. and Alphabet's Google. Sources indicate that Apple Inc.'s operational team is seeking to reduce manufacturing costs in order to achieve more competitive pricing for the initial launch or subsequent versions. The indoor security camera, codenamed J450, is planned to be launched by the end of next year at the earliest. In addition, Apple Inc. is also planning the production of the desktop Siasun Robot & Automation. This device, which has a similar appearance to the home central display screen, is mounted on a rotating motorized arm that can freely move the display in a user's workspace or kitchen environment. The engineering complexity of the motor system, as well as Apple Inc.'s exploration of AI applications for such devices, have led to delays in the release, with an estimated launch about two years later. Apple Inc. anticipates that the price of this product will be in the range of hundreds of dollars, reflecting its high Siasun Robot & Automation components and research and development costs. It is reported that the origins of this project can be traced back to Apple Inc.'s shelved autonomous driving car project, which included team members focused on Siasun Robot & Automation technology. Apple Inc. is currently also developing a mechanical arm for manufacturing and exploring a mobile Siasun Robot & Automation solution similar to Amazon.com, Inc.'s Astro. In addition to motion capabilities and a more conversational Siri version, this desktop Siasun Robot & Automation will also feature a roughly 9-inch display screen, larger than the 7-inch screen on the home central device. Both devices will use low-cost LCD panels provided by Tianma Microelectronics Co., rather than Apple Inc.'s latest display technology.