New Apple Vision Pro with M5 Chip Now Assembled in Vietnam as Apple Expands Supply Chain Beyond China

Highlights

• Apple’s new Vision Pro with M5 chip is now assembled in Vietnam, signalling a key move to diversify its supply chain beyond China.
• While the headset is labelled “Product of Vietnam,” accessories like the Dual Knit Band are still made in China.
• Apple is gradually shifting production to countries like India, Thailand, and Malaysia.

Caption – New Apple Vision Pro. (Image credit – Apple)

Apple’s latest Vision Pro headset with the new M5 chip and a Dual Knit Band will officially hit stores this week. However, the updated model brings a major change related to Apple’s broader strategy to spread its supply chain across multiple regions, reducing its heavy reliance on Chinese production. Here’s the latest update on Apple’s manufacturing strategy.

Apple’s Manufacturing Strategy

According to a report by Bloomberg, while the first-generation Apple Vision Pro was assembled in China, the new M5-powered model will be manufactured in Vietnam. Yes, the box label of the device now reads “Product of Vietnam”, signalling a key milestone in Apple’s ongoing effort to diversify its production network away from China.

Caption – Apple Vision Pro processors. (Image credit – Apple)

However, Bloomberg also noted that the Dual Knit Band, which is sold separately, continues to be produced in China.

The report reads, “While packaging for full Vision Pro units shows a “Product of Vietnam” label, customers who purchased the new Dual Knit headband as a standalone item have noticed that the accessory is made in China. The original Vision Pro was manufactured by China-based Luxshare Precision Industry Co., which also makes some AirPods.”

The timing of this shift is particularly significant as Apple continues to balance complex geopolitical and commercial pressures between the United States and China. Washington has been urging U.S. companies to move more manufacturing back home, while Apple simultaneously maintains strong ties with Chinese suppliers and government officials.

Earlier this year, Apple CEO Tim Cook visited China and reportedly reassured local leaders that the company would continue investing in the region, even as it diversifies production elsewhere.

Production Expands to New Regions

Thanks to the trade tensions between the U.S. and China, Apple has been gradually moving portions of its manufacturing to other Asian countries including Vietnam, India, Thailand, and Malaysia. Despite these efforts, China still handles the majority of Apple’s global production, especially for high-demand devices such as iPhones and Macs.

The decision to assemble the Apple Vision Pro (M5) in Vietnam likely reflects a combination of factors. One of the primary reasons could be the headset’s relatively low production volume and the minor hardware updates it introduces compared to the original model. These smaller changes make it easier to transition manufacturing to a new site without disrupting Apple’s broader supply chain.

Meanwhile, the company is expected to grow its lineup of wearables and head-mounted devices in the coming years. Considering this, diversifying production early will help in reducing future risks related to trade restrictions or political instability.

FAQs

Q1. Where is the new Apple Vision Pro (M5) headset assembled?

Answer. The updated Vision Pro with the M5 chip is now assembled in Vietnam, marking Apple’s strategic shift to diversify its supply chain beyond China.

Q2. Is China still involved in producing parts of the new Vision Pro?

Answer. Yes, while the headset is labelled “Product of Vietnam,” accessories like the Dual Knit Band are still manufactured in China, showing partial reliance on Chinese suppliers.

Q3. Why is Apple moving new Vision Pro production to countries like Vietnam?

Answer. Apple is expanding manufacturing to regions like Vietnam, India, and Malaysia to reduce geopolitical risks, respond to U.S. trade pressures, and prepare for future wearable growth.

Also Read –

https://www.mymobileindia.com/gurman-apple-vision-pro-is-set-to-get-playstation-vr-controller-support-this-year/

https://www.mymobileindia.com/apple-to-team-up-with-sony-to-boost-vr-gaming-on-apple-vision-pro/