Apple Inc’s (NASDAQ:AAPL) next smartwatch iteration could be mostly shipped from a non-China country, according to TF International Securities analyst Ming-Chi Kuo.
What Happened: In Kuo’s estimate, the shipment proportion of the Apple Watch emanating out of Vietnam will “significantly rise” to 60-70%. 

Electronic components manufacturer Luxshare is “the leader in building production lines in non-China countries among Chinese Apple suppliers,” Kuo said in a tweet on Thursday.

The analyst said that “the first mover advantage” enjoyed by Luxhsare is conducive to its “long-term development amid the deglobalization trend.”

Kuo said though it has been reported that Apple Watch mass production will begin in Vietnam, but it’s already shipping from there.

“Luxshare ICT, Apple Watch's major assembler, has production lines in China and Vietnam and has shipped from Vietnam since Apple Watch 7.”

See Also: How To Buy Apple (AAPL) Shares

Why It Matters: Luxshare was founded by Wang Laichun, after she spent a decade at important Apple supplier Hon Hai Precision Industry Company Ltd (OTC:HNHPF), also known as  Foxconn, reported The Telegraph.

Foxconn has previously taken exception to its rivals shifting base to Vietnam and allegedly poaching its workforce. 

It was reported that Apple is looking to increase its production outside China. The Tim Cook-led company is said to have told some of its manufacturers that due to stringent COVID-19 norms across China, it wants to boost production out of that country. 

Price Action: On Thursday, Apple shares declined 0.2% to $174.15 in the regular session, according to data from Benzinga Pro.