Apple Collaborates with BYD in Vietnam to Develop a Smart Home Hub and AI Tabletop Robot

In a strategic move towards enhancing supply chain resilience, Apple has announced its shift from China and India towards Vietnam. This decision is marked by a collaboration with BYD, the Chinese electric vehicle manufacturer, to create a series of innovative home devices.

Apple’s New Manufacturing Hub in Vietnam for Home Devices

NEW: Apple is building its pipeline of smart home devices – including a HomePod with a 7-inch screen next year and tabletop robot with 9-inch screen in 2027 – in Vietnam as part of its ongoing diversification from China.https://t.co/Lv4QBNofzs

— Mark Gurman (@markgurman) October 14, 2025

According to Bloomberg’s Mark Gurman, Apple’s strategy aims to tap into an emerging total addressable market (TAM) for home devices. The key developments include:

Establishment of a manufacturing facility in Vietnam in collaboration with BYD.
Introduction of advanced products such as indoor security cameras and a mobile tabletop AI robot equipped with multiple motors and sensors.
Projected launch of a new HomePod model in 2026.
Expected release of the tabletop AI robot in 2027.

Navigating Apple’s Supply Chain Challenges

As previously highlighted, Apple implemented a dual strategy earlier this year in response to the trade tensions initiated during President Trump’s administration:

Shifting the majority of iPhone production from China to India.
Securing a tariff exemption by committing to a $600 billion investment in the US to establish a comprehensive domestic silicon supply chain.

Recent escalations in US-China relations, particularly with Trump’s renewed threats of 100% tariffs amid contentious discussions regarding rare earth exports, have prompted further considerations for Apple. These geopolitical dynamics have underscored the necessity for Apple to diversify its manufacturing footprint.

By pivoting to Vietnam, Apple appears to be proactively mitigating its exposure to these fluctuations, particularly given Vietnam’s recent efforts to solidify its trade position, including a significant trade agreement with the US under the Trump administration.

Source & Images