Apple to assemble its smart home hub at BYD's Vietnam plant, the first new product category built outside China from day one

Apple's smart home hub, set to launch in spring 2026 at around $350 (approximately 54,250 yen), will be assembled, inspected, and packaged by China's BYD at a plant in Vietnam. Apple has previously produced some existing products such as iPad and AirPods in Vietnam, but this marks the first time an entirely new product category has been manufactured outside China from launch day.

Smart home hub product details

Apple's smart home hub will come in two variants. Model J490 is a tabletop version that sits on a speaker stand, while model J491 is a wall-mounted version. Both feature a 7-inch display and a built-in FaceTime camera and upgraded Siri. They run a dedicated OS for centrally managing Apple devices, designed so that a single unit can control smart home devices such as lighting, climate control, and security.

The price is around $350 (approximately 54,250 yen). It is positioned as a wall-mounted version of the HomePod mini, but the addition of a display greatly improves usability. It is a product that competes directly with Amazon's "Echo Show" and Google's "Nest Hub."

Background: Apple's shift toward manufacturing in Vietnam

Apple has previously manufactured iPad, Mac, AirPods, Apple Watch, and the older HomePod in Vietnam. However, all of these were existing product categories, and the typical pattern was to first set up production lines in China and then transfer them to Vietnam.

The new smart home hub fundamentally changes that pattern. This is the first time in Apple's history that a new product category has been manufactured in Vietnam from launch day, indicating that the company's supply chain strategy is shifting from "China plus one" to "Vietnam first." The fact that the United States imposes reciprocal tariffs of up to 20% on imports is also a factor accelerating the shift of manufacturing outside China.

BYD, which handles the assembly, is known as an electric vehicle maker but has also long been a partner in contract electronics manufacturing for Apple. It has a track record of assembling iPads and operates assembly lines within Vietnam.

Apple's Vietnam manufacturing plans

Local Reaction

Vietnam's Ministry of Finance (which absorbed the Ministry of Planning and Investment in February 2025) has characterized the fact that Apple's new product category will be manufactured in Vietnam from day one as "an elevation of Vietnam's strategic position in the global supply chain." Some have praised the fact that not just assembly but inspection and packaging as well are handled end-to-end in Vietnam.

People in Vietnam's electronics industry are focused on the possibility that BYD's Vietnam base will be expanded. If security cameras and tabletop robots are also manufactured in Vietnam following the smart home hub, BYD's Vietnam business will grow rapidly.

The supply chain industry increasingly views Apple's move as likely to accelerate the shift of other U.S. tech companies to Vietnam. Samsung is also expanding its semiconductor packaging base in Vietnam, and the country is establishing itself as the "world's tech factory."

What this means for Japanese companies entering Vietnam

Apple's "Vietnam first" manufacturing of the smart home hub carries two implications for Japanese electronics companies. First, Vietnam has been upgraded from a "low-cost assembly factory" to a "new-product launch base." Conventional wisdom held that mass production should be established in China first and then moved to Vietnam, but Apple's decision to manufacture a new category in Vietnam from the outset means that Vietnam's manufacturing quality and engineering talent have reached a level where they can be entrusted with a "first unit."

Second, it is a business opportunity for Japanese manufacturers of smart home-related components. Apple's entry into smart home is expected to expand the market for the category as a whole, increasing demand for components such as displays, sensors, and camera modules. Japanese component makers with supplier bases in Vietnam can capitalize on their geographic advantage. HOYA's new plant in Vietnam—the trend of manufacturing precision components for the tech industry in Vietnam, as seen there, will likely accelerate further going forward.

Ripple effects on the industry

Apple's decision will have ripple effects across Vietnam's electronics industry as a whole. Samsung already plans to expand its semiconductor packaging base in Vietnam, and Intel also operates a chip test and packaging facility in Ho Chi Minh City. As Apple places a new product category in Vietnam, the entry of Tier 1 and Tier 2 suppliers is likely to follow in a chain reaction.

Kokuyo's acquisition of Thien Long is in the stationery industry, but Apple's move is evidence that the range of "what can be made in Vietnam" is expanding for Japan's tech manufacturing sector. If a product incorporating multiple sensors, displays, and communication modules, like the smart home hub, can be made in Vietnam, then moving precision equipment previously thought "only makeable in China" to Vietnam becomes realistic too.

Practical Information

Conclusion

The fact that Apple's smart home hub is manufactured at BYD's Vietnam plant from day one carries a meaning that goes beyond simple "production relocation." This is the first time in Apple's history that an entirely new product category has launched in a country other than China, symbolizing that Vietnam is becoming a presence alongside China as the "world's tech factory." With a product lineup that continues with a security camera (end of 2026) and a tabletop robot (2027) still to come, Apple's manufacturing in Vietnam is not a temporary move but a structural shift. For Japanese companies, rebuilding component supply chains and strengthening their Vietnam bases' "new-product readiness" are now urgent priorities.

Source: Vietnam.vn, Mac Observer