What you need to know
- Apple has been looking into iPhone production in Vietnam.
- It reportedly sent people to check worker conditions earlier this month.
- Luxshare-ICT wasn't able to meet Apple's standards.
Apple reportedly wants to bring iPhone production to Vietnam, but it won't do it until worker conditions in the country improve.
According to local news reports, Apple sent a delegation to check the working conditions at Luxshare-ICT, but it wasn't convinced by what it saw.
Apple wants to make sure that workers have somewhere to live, rather than have to spend money on commuting and everything associated with running a home.
The Apple side comes to carefully check the welfare and safety of workers and put this issue first, especially near the production site. If there is a dormitory for workers, the employees do not have to spend a lot of living expenses and are equipped with air conditioner, water heater, washing machine in the room by Luxshare Company - ICT Vietnam.
Apple's standards have so far meant that Luxhare-ICT isn't able to begin iPhone production in Vietnam. That leaves it producing AirPods, according to the report, while the company also intends to produce Apple Watches at the plant.
In the immediate future, the workshop of Luxshare -ICT Vietnam Company in Van Trung Industrial Park produces wireless headphones and later on in the project goal, it also makes smart watches for Apple.
Apple and its suppliers have increased their efforts to expand production beyond China in recent months. The aim is to reduce their reliance on a country that continues to be in disagreement with the United States over everything from trade deals to TikTok.