Shares in Chinese EV maker BYD (BYDDY) were flat today despite sealing a deal with tech giant Apple (AAPL) to help build its new Smart Homes devices.
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Production Shift
Despite Apple chief executive Tim Cook’s reinforced commitments to China this week, the new devices, including a new home hub and indoor security camera in 2026, and a mysterious tabletop robot in 2027, will be assembled, tested and packaged in Vietnam by BYD.
This is a move away from the normal practice of manufacturing new Apple products in China, but it continues a trend seen this year following the tariff trade wars with the U.S.
Indeed, Apple is already making iPads, AirPods, Apple Watches and Macs in Vietnam. In addition, Apple has significantly boosted production of iPhones in India over the past year.
So, what can Apple users expect from the new devices? The home hub will, according to tech analysts at Apple Must, run apps and control home devices. Features will include microphones for its voice assistant Siri, FaceTime support and person recognition sensors.
The security camera is also expected to boast facial recognition tools so only the user will be able to see what the camera sees.
Balanced Cook
Apple Must also explains that the tabletop robot will be a screen on an arm that moves around to track you when using it. End uses could be for group video conferencing, retail, hospitality and, on your days off, rollercoasters.
Cook is playing his own careful balance between diversifying supply away from China, but also trying to stay friendly with the authorities there.
Indeed, China is still Apple’s biggest market outside the U.S. and the main hub for iPhone production through Foxconn and Luxshare. According to Main Street Data – see above – China revenue reached $15.4 billion in Q3 FY25, reflecting how important the market still remains to the company’s bottom line.
This connection to China also includes the tie-up with BYD and the planned partnership with Alibaba (BABA) to rollout iPhone AI services.
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