00:00Bloomberg learned that Apple is preparing to expand manufacturing in Vietnam as part of its push into the smart home market.
00:05Some of these other stocks here, you're looking at Tian Ma Microelectronics.
00:09They're a low-cost LCD panel maker or supplier, and they could be part of this equation as well,
00:16rather than Apple's latest display technology.
00:19Apparently, these devices in Vietnam would use these lower-cost LCD panels supplied by Tian Ma.
00:25That's why we're looking at that. It's up about a tenth of one percent.
00:28For more, let's bring in Bloomberg tech reporter Newley Purnell.
00:31So bring us up to date and up to speed on this story.
00:34Is this a seismic shift or just a part of a longer-term trend to diversify away from China?
00:40Yeah, a great scoop by our colleague Mark Gurman.
00:42He's reported earlier that Apple's working on these three new devices for the home.
00:46The first time they've created a device like this, we've got a security camera, a home hub, and a tabletop robot.
00:54And interestingly, he's reporting we're going to make them all in Vietnam.
00:58This would be the first time that they have made a new product in a new category outside of China.
01:04Usually, they make them first in China, and then they expand operations to other countries.
01:07And interestingly, a partner, BYD, of course, the Chinese EV maker.
01:12I think it really underscores the importance of Vietnam.
01:16Apple has already been making other products there.
01:18But, of course, it is part of this larger strategy, yes, to shift their production for geopolitical risk, for supply chain issues, tariffs away from China to other countries, India notably, Vietnam, Malaysia.
01:31But interesting here, details on these products being made in Vietnam and with BYD.
01:35Do we expect the trend to continue?
01:39I think so.
01:40And I think that it makes sense.
01:43Of course, these new products wouldn't be immune as the current regime stance from tariffs.
01:48They'd still be hit with tariffs.
01:49I think it's also really interesting to look at the bigger picture for Apple.
01:52You know, they really would love to ignite a new investor and a consumer enthusiasm in their products.
02:00You know, they face some very high-profile challenges when it comes to getting on the AI bandwagon with Apple intelligence and other services.
02:09People have been wondering how are they going to incorporate some of these new technologies to their products.
02:14These would be the first time, as I said, the first time making these new kinds of products.
02:18And can it bring some of their mojo back?
02:20Can it reignite consumers?
02:22Of course, they have the new iPhone.
02:23But they face challenges all over the world for smartphones.
02:26But can they get into these exciting new products?
02:28And what will consumers' reactions to that be?
02:30So high-profile new launches.
02:32Yeah, one of the three devices there is, as Steve was pointing out earlier, an advanced tabletop robot.
02:37With an arm.
02:38With a retractable arm.
02:40Right.
02:40What's it supposed to do?
02:41So I think grab your food.
02:43So I think the idea is, if you think of, like, the home hub, so if you think maybe like a 7-inch by 7-inch display, the idea is it could be on this articulated arm that could sort of follow you on.
02:55So you could do a FaceTime call.
02:56Or you could use it maybe to control, you know, home appliances perhaps, play music, movies, that sort of thing.
03:04So, yeah, try not to think of it in a dystopian way.
03:07Yeah, I think of everything in a dystopian way.
03:10The wrong person to talk to.
03:11There we go.
03:13It's Julie Pernell there, putting some ideas in her head.
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