Apple’s M5 Vision Pro shifts to Vietnam: diversification, risk, and what changes next

Apple has moved assembly of the new M5 Vision Pro to Vietnam, the clearest sign yet that Cupertino’s diversification agenda isn’t just about iPhones in India — it’s about placing high-complexity products across multiple manufacturing bases. Bloomberg broke the news, noting that the original headset was built in China by Luxshare; the refreshed unit with Apple’s M5 SoC and Dual Knit band is now being put together in Vietnam. That’s a milestone: Vision Pro is Apple’s most intricate wearable/computing hybrid, and shifting it outside China shows growing confidence in Vietnam’s capability stack.

What actually changed

The current Vision Pro refresh (M5 + Dual Knit band) is being assembled in Vietnam. The first-gen run was built by Luxshare in China. According to multiple summaries of Apple’s packaging and Bloomberg’s reporting, the updated box now reads “Assembled in Vietnam.” That aligns with Apple’s broader trend of moving non-iPhone product families — AirPods, Apple Watch, select iPads and Macs — to Southeast Asia in phases while it keeps the bulk of iPhone volume in China and ramps India for phones.

Why Vision Pro is a sensible “first mover” for Vietnam

Low absolute volume. Compared to iPhone, Vision Pro is tiny. Lower units make it a safer test bed for new geographies without risking holiday-quarter revenue.
High assembly complexity, but modularizable. The device is brutal in optics, sealing, and final calibration, yet many steps can be templated into workstation cells once the process window is nailed. That favors a site with strong EMS talent but fewer lines.
Supplier adjacency already exists. Apple’s network in northern Vietnam includes Foxconn, Luxshare, Goertek, BYD and others for various products. Adding a Vision Pro line leverages existing logistics, recruitment, and management muscle.

How this fits Apple’s broader diversification map

Vietnam isn’t a new experiment for Apple; it’s a hub. Apple manufactures AirPods, Apple Watch and portions of iPad/Mac there already, with steady supplier investment across Bac Ninh, Bac Giang, Vinh Phuc, Hai Phong and Hanoi. Tim Cook’s 2024 visit telegraphed more spend in-country; by mid-2025, local press and company materials highlighted an expanded roster of partners and product lines. The M5 Vision Pro adds a flagship-adjacent product to that list.

Supply-chain guts: what has to be in place for a headset to move

Shifting final assembly is not just about “new address, same process.” For Vision Pro-class devices, Apple (and its EMS) need:

Optics assembly labs with particulate control for lens stacks, prism assemblies, and eye-tracking modules.
Mechanical precision cells for headband frames, facial interfaces, and the new Dual Knit band — where repeatable tension, adhesive, and stitching specs matter.
End-of-line calibration rigs for displays, cameras, and sensors. These rigs dictate floor layout and throughput as much as people do.
Supplier logistics to get display modules, SoCs, optics, and foam/knit subassemblies clustered nearby with reliable QA feedback loops.

Vietnam had most of these pieces in place thanks to AirPods/Watch programs (which also require clean assembly, small-part handling, and calibration) — making a Vision Pro migration less of a moonshot.

Why Apple is doing this now

Second-source geography. China remains irreplaceable for sheer scale, but Apple wants at least one mature alternative for every major category.
Policy resilience. Tariff regimes and export controls keep shifting. Splitting assembly across countries reduces one-country exposure and improves negotiating leverage.
Supplier intent. Luxshare, BYD and Foxconn have all been expanding in Vietnam. When your Tier-1s plant flags, you follow if quality holds.

Constraints and risks to keep an eye on

Power reliability. Northern industrial parks faced power-rationing scares in 2023; Vietnamese authorities have since pushed mitigation, but summer peaks remain a watch item for any line that depends on tight thermal control and continuous calibration.
Tariff noise. Any change in U.S. tariffs on Vietnam-origin goods adds planning friction. Big OEMs can smooth this with pricing/mix, but it’s an uncertainty tax.
Local supply depth. Vietnam’s EMS and light-mechanicals base is strong; deep optics or specialty materials still lean on China, Japan, or Korea — meaning cross-border logistics stay critical.

What changes for buyers and developers

For buyers: nothing obvious on day one. The M5 upgrade and Dual Knit band are the visible changes; “Assembled in Vietnam” is invisible unless you read the fine print on the box. If anything, a geographically diversified line improves availability resilience.

For developers and content houses: the interesting knock-on is Apple’s momentum around the ecosystem: Immersive Video workflows (e.g., Blackmagic’s Cine Immersive camera pipeline) and visionOS feature cadence. If Apple is confident enough to spread manufacturing, it signals a product roadmap with legs — which matters when you’re budgeting for immersive capture rigs or spatial app teams.

Does this foreshadow a bigger Vision lineup?

Probably. Moving a device to a second geography usually pairs with either (a) a cost-down path and higher volume later, (b) a family split (Pro / non-Pro), or (c) both. The manufacturing signal says Apple wants a more repeatable, more scalable Vision build — the sort of groundwork you lay before you widen the price ladder.

M5 and the hardware cadence

Apple’s own Newsroom outlined the October refresh that brought the M5 to Vision Pro and introduced the Dual Knit band. The M-series cadence is now fast enough that “yearly core bumps” look normal across the Mac/iPad/Vision stack. If that continues, a Vietnam site will be shipping frequent mid-cycle updates — a good stress test for any new line’s change-management rigor.

Zooming out: Vietnam’s role in Apple’s portfolio

Vietnam is now Apple’s most important production base outside China and India, especially for wearables and audio. The country offers:

Labor and industrial parks aligned to electronics assembly.
Supplier clustering (EMS, plastics, cables, packaging) within trucking distance of ports.
Government courtship of high-tech FDI with vocational training and speed on permits.

Challenges remain — power, logistics congestion during peak season, and a shallow local tier for some components — but the capability is clearly rising. Apple wouldn’t risk a flagship-adjacent product if the yield math didn’t work.

What to watch next

Throughput stability into the holiday quarter and beyond. If lead times fall and product reliability holds steady, the move worked.
Supplier disclosures from Luxshare, BYD, Foxconn about new Vietnam capex tied to non-audio categories.
Complementary moves (e.g., more Mac/iPad SKUs shifting) that share logistics with the Vision line.

Bottom line

Vision Pro’s shift to Vietnam isn’t symbolic — it’s operational. Apple is proving it can build its most complex non-iPhone hardware in a second geography without tripping quality. That de-risks future Vision models, spreads geopolitical exposure, and deepens Vietnam’s position as Apple’s wearables/AR anchor. If the line hums through its first full cycle, expect more “Assembled in Vietnam” badges across Apple’s pricier toys.