Apple to build smart home devices in Vietnam, shifts from China

Apple plans to manufacture new smart home devices, including a display hub and indoor security cameras, in Vietnam as it shifts further away from China.

The upcoming home hub, expected in spring 2026, will feature a 7-inch display and act as a control center for appliances and communication.

Apple is partnering with BYD for assembly, testing, and packaging, and will also expand iPad production in Vietnam.

The company is developing a tabletop robot with a motorized arm, targeted for release in 2027, though the home hub has faced delays due to postponed AI software development.

Both the display hub and robot will use LCD panels from Tianma Microelectronics.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Vietnam’s 20% tariff applies broadly to electronics; no Apple-specific exemption indicated

A July 31 executive order set a 20% reciprocal tariff on Vietnamese goods, effective August 7, 2025 1 2. It covers electric and other machinery, including smart displays and Internet Protocol (IP) cameras 2. Goods already exempt from reciprocal tariffs stay exempt 2. Future trade deals would need new orders before any rate change 1.
Country-of-origin determinations (the rules customs uses to decide a product’s made-in status for tariffs) matter for Apple’s Vietnam builds 3. Complex printed circuit board (PCB) assembly and integration in Vietnam can confer Vietnamese origin 3. Simple assembly of Chinese subassemblies generally does not 3.
CBP can impose a 40% duty for transshipment through Vietnam 1. Risk rises if there is no substantial transformation 1. That legal standard means the product’s name or character or use changed in a material way 1.

Smart home device makers can capture white space (underserved categories) before Apple’s 2026 hub launches

Apple plans a spring 2026 home hub that could speed adoption of HomeKit (Apple’s smart home platform) and Matter (an industry standard for smart home device interoperability).
Manufacturers can use the Matter certified products database to spot gaps in categories like security cameras, climate control, and motorized shades where Apple has not announced products 4.
Home technology installers and system integrators can build expertise in Apple’s ecosystem before launch. These firms design and combine multiple devices and software into one setup. The tabletop robot’s 2027 timeline leaves room for home automation software providers to build Matter-compatible tools that complement Apple’s offering.