What Happened: As Apple looks to diversify its production away from China, the report citing sources familiar with the matter said the U.S. tech giant is in talks to make Watches and MacBooks in Vietnam for the first time.

"AirPods, Apple Watch, HomePod and more ... Apple has big plans in Vietnam, apart from iPhone manufacturing," a source with direct knowledge of the situation told the publication.

See Also: Apple's New Product Shipments Will Take A Hit During Peak Season If This Happens, Analyst Warns

"The components for MacBooks have become more modularized than in the past, which makes it easier to produce the laptops outside of China. But how to make it cost-competitive is another challenge," the source added.

An email sent to Foxconn and Luxshare seeking comments didn't elicit any response as of press time.

The Southeast Asian country is Apple's most crucial production hub outside China. It produces a wide range of products for the tech giant, including iPad tablets and AirPods earphones.

Price Action: According to data from Benzinga Pro, Hon Hai Precision Industry Co. Ltd (OTC:HNHPF) — better known as Foxconn — OTC shares closed 0.81% lower on Tuesday. Apple shares closed flat at $173.03 apiece.

Check out more of Benzinga's Europe and Asia coverage by following this link.