Apple made in vietnam. How to Tell if Airpods Are Fake or Real: 6 Tested & Proven Methods

How to Tell if Airpods Are Fake or Real: 6 Tested Proven Methods

We bought counterfeit Airpods to determine what differentiates them from the authentic pair. Here’s the ultimate guide on how to tell if your Airpods or Airpods Pro are fake.

Aside from Apple losing 3.2 billion a year due to fake Airpods, the users’ safety also gets at risk with reports of fake Airpods exploding.

Unfortunately, authenticating Airpods is tricky. Fake Airpods are getting better every year, with some passing the serial number check and even having AirPod-exclusive features.

But identifying fakes from originals is possible, especially with Apple’s new features and a keen eye. And we investigated fake Airpods to list all the possible ways you can do so. Read on as we explore the six best ways to determine if your Airpods are real or fake.

Identify Counterfeit Airpods Using iOS Devices

With the launch of iOS 16, you can quickly tell if your Airpods are original or fake on your iOS devices. No need to go to great lengths to verify your Airpods’ legitimacy!

This update now shows a prompt message on your iOS device when the Airpods you’re pairing with it are not a genuine pair.

Simply connect your Airpods by opening the lid and placing them close to your iOS device (with Bluetooth turned on) to test this prompt.

However, this new feature does not stop you from pairing a fake pair of Airpods with your iOS devices. It simply informs users of the authenticity of their Airpods and highlights that the fake pair of Airpods might not work as well as a genuine pair.

Try Exclusive Features You Won’t Find on Fake Airpods

Airpods are packed with game-changing features that only Apple’s software could do. These exclusive Apple-only features can be a great way to tell whether your Airpods are fake or not.

While you can pair Airpods with an Android device, the following features can only be tested on an iOS device.

Here’s how to check if your Airpods are original or fake via the software:

See if you can find them on the ‘Find My’ app

Find My is a platform created by Apple that allows users to track the location of their lost or misplaced devices. This platform can be accessed through its mobile app or the iCloud website.

You can’t avoid feeling awful about losing a pair of Airpods, authentic or not. The difference is that you can find your authentic Airpods again using the Find My app, while your counterfeit Airpods will likely be lost forever.

Original Airpods will automatically be added to your Find My account the moment you pair them with an iOS device. Original Airpods can also utilize all functions of the Find My platform, including Play Sound and Directions.

To check this, simply go to the Find My app and see if your Airpods appear on the list in the Devices tab.

Check the details on the ‘i’ icon

The Info, or ‘i’, button next to your devices can tell you whether they are legitimate Apple products or third-party Bluetooth devices.

To access the Info screen on your iOS device:

• Go to Settings.
• Tap Bluetooth.
• Tap the blue circle with an ‘i’ in it next to your Airpods or Airpods Pro.

Real Airpods’ Info button will have the model number, serial number, firmware version, and ‘’ displayed on the screen.

However, fake Airpods’ Info screen will appear like other Bluetooth products: displaying the name, limited device info, and ‘Forget this Device.’

The model number is the identifier Apple assigned for each AirPod variant. Consequently, this helps you identify which AirPod version you have. The firmware version, on the other hand, changes over time as Apple also releases regular firmware updates.

It’s a good idea to also double-check the Airpods’ model number and firmware version to ensure their authenticity. Here’s a quick reference:

Don’t worry if you have outdated firmware. For instance, if you’re holding on to a pair of Airpods Pro (1st generation) and see that your firmware version is 3A283, you simply need to update them.

Airpods’ firmware updates are delivered automatically, so there’s no need for you to update your Airpods manually.

Tell if Airpods Are Fake via the Serial Number

If you’re buying from a third party and don’t have time to verify the Airpods’ authenticity through a software check, there are quite a few checks you can do. One of which is through the Airpods’ serial number.

The serial number is the fingerprint of a product. It is a combination of numbers and letters assigned only to a specific unit produced.

This allows Apple to track specific units during inventory.

Aside from that, Apple also uses serial numbers to identify defective batches. For users, the serial number is proof that the product actually came from Apple and not any other manufacturer.

You can also use the serial number to identify stolen or lost Airpods. Every pair of Airpods has a one-of-a-kind serial number so you can verify whether a unit is yours or not. For example, if you suspect another person is using your lost Airpods, you can check the serial number.

Where is the serial number on Airpods?

Here’s where to find your Airpods’ serial number:

• Bluetooth Settings: If you are using iOS or iPadOS you can tap your Airpods’ Info button and find the serial number.
• Airpods Case: If you own Airpods or Airpods Pro and are using the original case, it will have the same serial number as your Airpods. Locate it on the underside of the flip-open lid.
• Airpods Max Ear Cushion: For Airpods Max, remove the left ear cushion. Underneath, you’ll find the serial number next to an Apple logo near the speaker holes.
• Box: If you have the authentic box for your Airpods, the serial number will be on the barcode at the back. Make sure this matches the serial number on the inside of the charging case’s lid.

Airpods (2nd 3rd gen) and Airpods Pro (1 2), sometimes have different serial numbers on each earbud printed under the speaker’s head. For a more accurate check, refer to the serial number on your case or the Bluetooth Settings instead.

How to check the serial number authenticity of Airpods

Once you have your Airpods’ or Airpods Pro’s serial number, check if it is real or fake by simply heading to the Apple Coverage Check page. If your Airpods are original, you’ll see this:

Checking the serial numbers to identify fakes used to be a foolproof method. Unfortunately, that’s not the case nowadays. Some manufacturers of fake Airpods have been taking serial numbers from real Airpods to use in batches of fakes.

Spot Fake Airpods via the Packaging

Anyone who knows a thing or two about tech brands also knows how much Apple pays attention to the details, even when it comes to the packaging.

Because of this, counterfeit manufacturers seem to have a harder time producing high-quality packaging than the earbuds themselves.

Here’s how to spot fake Airpods and Airpods Pro via the packaging:

Different counterfeit Airpods come from different manufacturers. This means some manufacturers could have gotten parts of packaging right that other manufacturers haven’t.

Check for misspellings and wrong information

A company like Apple would not have typographical errors on the box itself or even in the manuals. These materials go through multiple rounds of proofreaders and copywriters before printing.

If you spot any errors on your Airpods’ packaging, you’re probably holding a counterfeit one.

You’ll also notice that the labels for the original boxes are separated, whereas fake ones simply have one whole strip of paper attached.

Check the box contents and logo

You should also know how to spot fake Airpods and Airpods Pro by checking what’s inside the box. Oftentimes, counterfeit Airpods will only have the manual. However, authentic Airpods would have two more documents, aside from the manual — the safety sheet and the warranty card.

Apart from that, the logo is also one of the first things people check out in the Airpods’ box. The original one has a sharper and more defined edge along the bite area. The counterfeit one, however, might have rounded edges.

Logo checking is a technique that is famously used for authenticating shoes. Experts can discern whether a pair of shoes is authentic just by checking the angle of a Nike or Jordan logo.

Check the font and color consistency

Font differences can be hard to spot, especially if you don’t have the real thing as a reference.

Apple currently uses a font called San Francisco. If you don’t have another pair of Airpods to compare, you can try downloading this online and printing some texts with it to check for consistency.

Based on our experience, common counterfeit Airpods have a thinner and taller font with lesser space in between the letters.

You could also use the colors of the text to determine authenticity. Although subtly, you would notice that the fake ones seem to use a darker shade of gray for the texts.

Test for snug fit

Who knew that even the suction you feel when opening an Apple product’s box was intentionally put there?

Apple boxes are composed of two parts: an inner box that houses the contents and an outer box with the image of the product. To open the box, you need to raise the outer box and wait for the inner packaging to release itself naturally. This is something that most counterfeit products cannot fabricate.

To check this, get yourself another box from an authentic Apple product. Familiarize yourself with the drag and suction from that box and compare it to your Airpods’ box. If the sensation isn’t the same, then you probably have counterfeit Airpods.

According to Adam Lashinsky’s book, Inside Apple, one packaging designer in Apple’s team had the sole task of designing how the boxes were opened. The result of these painstaking efforts is the slow and dramatic experience you get when opening the package.

Physical Checks to Help Identify Real vs. Fake Airpods

The Airpods may simply look like a wireless version of the classic EarPods, but they are so much more than that. Apple truly showed its detail-oriented side with the Airpods, so most counterfeit manufacturers are prone to missing out on the little things.

Unlike the packaging, though, the physical differences between real and fake Airpods are a lot more subtle. To an untrained eye, high-quality couniterfeits can easily pass as originals. So, below are the key areas you can use to authenticate them.

Different manufacturers make counterfeit Airpods differently. Some manufacturers can get some areas of the Airpods right, so it’s essential to check out your earbuds from all angles and spot the mishaps.

Check the diffuser

The sound diffuser is the elongated rounded line you see on your Airpods beside the circular IR sensor. The sound diffuser has to be aligned with the black circle beside it.

For fake Airpods, the grills are likely not to be that polished, usually having random flat surfaces mixed up with the grills.

Check the bottom of the Airpods

The bottom part of the Airpods is where the charging contacts are. This part of the Airpods magnetically connects to their charging case.

For authentic Airpods, this part will have an oval shape that takes up around half of the whole space. Fake Airpods could have larger and more circular ovals. Also, the grills on the fake Airpods might not be as refined as the authentic ones.

Check the speaker grills and IR sensors

The transparency of the speaker grills is also a critical difference between authentic and fake Airpods. You’ll see the silhouette of two circular speakers with authentic ones, which might not be visible if you have fakes.

If you have an infrared camera, you can also check if the IR sensors are legitimate. Check out Reddit user volcom440’s post to see what AirPod Pro IR sensors look like under an infrared camera.

Check the charging case

Lastly, the charging case is also home to some key areas where you can determine whether the Airpods are original or not. For this, you need to basically look for any build defects that Apple probably won’t commit.

The key areas include the multifunction button, charging port, and the text below the hinge.

Other obvious signs of fake Airpods: blue light on the charging case or any light in the earbuds. Airpods status light can’t produce blue light, and the earbuds don’t have LED inside them.

Multifunction button and text

Check whether the button is secured and level with the case. Often, fake Airpods would have buttons that are either loose or raised.

The text above the button should say “Designed by Apple in California” and “Assembled in China.”

For this, watch out for spacing errors, wrong font use, and the use of a darker shade for the text.

Charging port

The charging port is lined with metal. Authentic Airpods are lined thinly, while the fake ones would have slightly thicker ones.

Other examples of clear fakes are anything that doesn’t have a lightning port or Airpods Pro cases that don’t work with Apple-approved wireless chargers.

Are you a new entrant to the Apple universe and still trying to understand how to use Airpods better? Here are two helpful guides on what it means when your Airpods flash orange and what you can do to properly reset them.

Unique Authenticity Checks for Airpods Pro

While a lot of the factors we’ve discussed so far work with both the standard Airpods and Airpods Pro, there are some distinguishing marks that exclusively indicate if your Airpods Pro are fake.

This is because Airpods Pro have unique tech and a different design than standard Airpods. For instance, Airpods 1, 2, 3 are earbuds, while Airpods Pro (1 2) are in-ear monitors.

We discuss the differences between earbuds and IEMs in our extensive guide on the different types of headphones.

You can learn how to spot fake Airpods Pro by checking the force sensor and shape:

Check the Airpods Pro force sensor

The force sensor is one of the highlights of the Airpods Pro controls and can be found along the flat part of the stem of each Airpods Pro earbud. Instead of being a proper button, the force sensor detects pressure from users squeezing the stem of their Airpods.

On the other hand, fake Airpods Pros will likely have a standard button or tap controls along the side, if they have any.

Identify design differences between fake vs. authentic Airpods Pro

Apple highly protects the design and shape of its Airpods and Airpods Pro products, effectively claiming trademark infringement on products with a similar shape. This protective stance is so strong that similar-looking earbuds have even been seized by US Customs.

As a result, looking at them is a great way to tell if the Airpods you have are real or fake.

Counterfeit Airpods are often different at the ear pieces (the part that go in your ears).

Real Airpods Pro have earpieces that are oval-shaped. In contrast, it is common to see fakes with circular earpieces.

Conclusion

Authenticating a pair of Airpods is as tricky as ever. Even with the strictest checks in place, you might find yourself saddled with a fake pair of Airpods. With the things we discussed above, though, you should be properly armed to take on the challenge.

Hopefully, you now won’t be easily fooled by those who want to take advantage of your desire to possess these high-end products at enviably “discounted prices.”

The only thing left for you to do is to go get those Airpods now!

Worried about your Airpods Max? Check out our article on the things to check to know if your Airpods Max are real or fake.

What inspections worked for you? Do you have any other tricks up your sleeve? Tell us about it in the Комментарии и мнения владельцев below!

Interesting Airpods Facts 2023: Airpods Revenue, Release Date, Units Sold

Did you know it’s estimated Apple sold over 150 million units of Airpods? Get more facts below.

Interesting Facts About Airpods

Apple made 12.1 billion of revenue in 2021 from Airpods sales alone.

Apple doesn’t disclose the exact numbers for Airpods alone. This is the estimated revenue for Airpods from combined sources.

Here’s a table of Airpods revenue per year:

Based on Above Avalon data and estimates from Apple headphones revenue numbers.

The Airpods were released at the end of 2016, so the first data available is in 2017.

The Airpods revenue is growing on average at 64.55% per year, though growth seems to be slowing down.

Apple sold 13.5 billion worth of wearables in Q1 2023 alone.

That’s actually less than in Q1 2022 when they earned 14.7 billion from wearables sales.

Airpods revenue comparison vs. tech companies 2021

Airpods 2021 revenue estimate is 12.1 billion, more than the revenue of Spotify. or Shopify.

Here’s a table of Airpods revenue comparison vs. tech companies in 2021:

Data from Yahoo Finance. JPY/USD rate of March 2021 for Sony numbers.

The Airpods revenue alone is bigger than that of many tech companies. But not as big as some sources portray.

The Airpods revenue in 2020 was likely not 23.05 billion, as often cited. In Apple’s annual reports, you can clearly see that they made 30.62 billion in the Wearables, Home, and Accessories category. The category includes Airpods, Apple Watch, Apple TV, Beats headphones, HomePod, iPods, and Apple accessories.

The estimate that Airpods sales alone represent 75% of the category is dubious.

How does Airpods revenue compare to other Apple products?

Airpods revenue is smaller than that of iPhone, Mac, or iPad. But the relative growth is bigger than any of the mentioned categories.

Apple revenue by category

Numbers from Apple annual reports. Airpods numbers are estimates.

The number of Airpods sold is growing each year. It’s estimated over 150 million units of Airpods have been sold so far.

And over 100 million people are using them right now. This data is based on Above Avalon numbers.

• 30% of people use more than one pair of Airpods, according to a survey.
• And 41% of respondents who bought new Airpods with wireless charging say they’re still using their old Airpods as secondary pair.

Apple sold 19.3 million units of Airpods in Q1 2022 alone, according to Canalys.

All true wireless (TWS) headphones shipments in the third quarter of 2022 are 76.9 million units, with 4.2 million units representing the latest Apple Airpods Pro 2.

Apple TWS Airpods shipments in Q3 2022 and Q1 2022:

Source: Canalys, Canalys 2, Canalys 3

Apple shipped 92.8 million of their headphones in 2021.

By the currently available data, Apple shipped 63 million headphones from Q1 2022 to Q3 2022.

(Canalys, Canalys 2, Canalys 3, Canalys 4, Canalys 5)

It’s estimated Apple sold around 58 million units of Airpods in 2021.

Source: Above Avalon 1 (estimates)

Today Apple is selling way over 10 million Airpods per quarter. The first time they got the milestone was in 2019.

And that’s not surprising as the AirPod lifespan isn’t that long.

The average selling price of Airpods is estimated at over 200 per unit, according to the Above Avalon source.

Airpods were first announced on September 7, 2016, and the first generation Airpods were released on December 13, 2016.

Here’s a table of Airpods release dates for all models:

Apple makes around 63.2 for each unit of Airpods 3 rd gen. sold assuming their average gross margin.

The company doesn’t disclose the gross margin for Airpods alone. But assuming the average product gross margin in 2021 was 35.3%, the numbers are:

Assumed avg. product margin for 2021. It’s likely margins are higher than the average.

Exact margins might differ from model to model. These numbers are estimated based on Apple’s 2021 Annual report data. (Apple’s 10-K Annual Filings)

Most Airpods are made in China, while some, around 30%, are made in Vietnam.

• Airpods 1 st gen. were made in China.
• Airpods 2 nd gen. are made in China and Vietnam.
• Airpods Pro are made in China and Vietnam.
• Airpods Max are made in China and Vietnam (by Chinese companies, Luxshare and Goertek).
• Airpods 3 rd gen. are made in China and Vietnam.
• Airpods Pro 2 are allegedly being made in Vietnam.

A small number of Airpods are made in Japan too, but to ensure you have an authentic product, check the serial number.

When did Airpods become popular?

Airpods were announced on September 7, 2016, and the first units were available in Dec 13 of the same year. They didn’t get a big, major red carpet event. They were unveiled to the world in a 5-minute press release event.

In 2018, 2 years after its release, Airpods became the most popular, most-sold Apple accessory, becoming a staple product for Apple.

Today Apple is selling more Airpods than Apple watches, iPads, iPods, or Macs.

Conclusion

These were the Airpods facts and statistics. The true wireless earbuds are becoming a strong revenue generator for the brand even though they started as an accessory to the iPhone 7.

What do you think is the future for Airpods? Let us know in the Комментарии и мнения владельцев below.

Manufacturing in China Vs. Vietnam Guide // Vietnam and China Sourcing Pros and Cons

Vietnam is one of Asia’s largest economies and is quickly becoming the 2nd largest manufacturing hub after China. Over the past decade, the great debate for manufacturers has been whether to shift production from China to Vietnam. This guide will explain how to move your factory from China to Vietnam, including the pros and cons. Vietnam is open for investment with little red tape, which means factories are currently moving to the country, especially after the US-China trade war escalation.

Vietnam is the primary manufacturing country for large brands such as Adidas and Nike, and many other fashion companies are packing their bags. Vietnam will soon become the premier location for fashion, shoes, furniture, garments, and electronics manufacturing. The main benefits of investing in Vietnam are the vast labor force, low labor costs, convenient location, and political stability. This guide will compare China and Vietnam and help you decide between the two countries.

Why Manufacturing is Moving from China to Vietnam

The world’s largest brands are opening factories in Vietnam: Apple, Samsung, Nike, Adidas, LG, Foxconn, and others are examples of companies that have shut down Chinese factories in favor of Vietnamese factories. Many of the world’s biggest corporations plan to move their entire outsourcing operations to Vietnam. In addition, the US-China trade war put significant tariffs on Chinese goods, while Vietnamese products are still easy to import. As a result, annual exports from Vietnam to the US surged, growing at 20-30% per year.

Many small companies realize the cost-effectiveness of shifting manufacturing to Vietnam and leaving China. Vietnam is attracting companies from small textile companies up to big tech electronics manufacturers. Vietnam is currently one of the biggest footwear manufacturers, and Nike manufactures more than 12% of its products in the country each year. Adidas has enormous production facilities in Vietnam and plans to manufacture most of its footwear. The footwear export industry is worth nearly 22B/year in Vietnam.

Big tech is moving into Vietnam and balancing its production with China. For example, Apple recently started producing Airpods in Vietnam to cut down on import costs from China. Samsung has also moved into the country by shutting down one of its Chinese factories and opening up a Vietnam factory. The last few years have seen an increase of over 300% in electronics, which results from decades of fostering a friendly business environment by the Vietnamese government and rising labor/export costs in China.

As a result of multinationals opening factories in the country, Vietnam sees record economic growth even with the pandemic’s slowdown. Vietnam’s economy grows at an average rate of 7-10% per year, and the economy is manufacturing/export-based, making it the #5th largest economy in terms of trade surplus with the US.

The World Bank estimates that Vietnamese exports will continue growing, and the total GDP will increase by 10% in the next few years. Vietnam even exports historically Chinese-dominated products, such as promotional products and fashion. In addition, Vietnam has the capability of high-tech manufacturing products, and recent investments by Apple and Samsung are a testament to that fact.

Top 5 Benefits of Outsourcing Your Suppliers From China To Vietnam

Business-Friendly Environment

Vietnam is a business-friendly nation with an open economy that seeks to attract international companies. Vietnam is more business-friendly than China, and investors find it easy to set up their factories and shipping logistics from the country company registration. Vietnam is a member of many international trade organizations and has signed hundreds of trade agreements with countries worldwide to make exports easy.

Vietnam is a core member of ASEAN, a market association for Southeast Asia, and the country was supposed to benefit the most from the Trans-Pacific Partnership project. Vietnamese factories follow international standards and guarantee manufacturing/production capability and employee rights.

Low Labor Cost in Vietnam

Vietnam’s main advantage over China is the low cost of the labor force. While wages in major Chinese cities have surged, and manufacturers are struggling to stay profitable, Vietnam’s labor cost can be as little as 1/3 of China’s. For instance, the minimum wage in Vietnam can be as low as 125 in certain regions. With that in mind, wages in Vietnam are increasing faster than in China and, in some cases, are reaching parity.

In many Chinese cities, the minimum wages are over 350, and in some, it’s impossible to hire workers for less than 500/month. While both countries have an abundant young workforce, Vietnam is still the more cost-effective choice for manufacturers looking to lower their labor spending. China’s rising labor costs, combined with an increase in tariffs, make Vietnam a desirable option comparison.

Political Stability

Vietnam is politically stable without involvement in international or domestic conflicts. As a result, Vietnam is a major tourist destination and annually attracts millions of visitors to its beaches and mountains. In addition, the country has one of the best governments in the region that emphasize development and business-friendliness, making it easy for foreign investors to set up shop in the country and conduct business.

The Vietnamese government cuts down on red tape and creates industrial zones where foreign investors get tax cuts and other benefits if they set up a factory. As a result, factory investments are safe in Vietnam, unlike other countries in the region that experience internal conflict.

Shipping Logistics in Vietnam

Vietnam has a convenient geographic location and a 3200km long Pacific coast. Its Pacific coastline makes it easy to export goods to international locations such as the US, EU, and Oceania. Most products arriving from Vietnam take as little time as those from China. The shorter shipping times are a significant advantage over other low-cost countries such as India and Bangladesh, where products might take double the time. In addition, Vietnam has a large population with hundreds of shipping companies that give you abundant choices regarding your shipping options by sea or air.

Vietnam’s proximity to China means that if your company experiences material shortages, it will be easy to source raw materials in China. In addition, cities in the north of Vietnam are only 800km away from the most significant Chinese manufacturing city. Shenzhen, while the operating costs are nearly 1/3 less. Combined with the international shipping routes, Vietnam is one of the most geographically convenient locations to invest in.

Infrastructure Links

Vietnam is rapidly modernizing its infrastructure with billion-dollar investments in highways and seaports. The Vietnamese government focuses on improving its ports to facilitate international shipping and make it easier for multinationals to ship heavy cargo between Vietnam and international destinations. Vietnam’s main advantage is the long 3200km coastline on the Pacific Ocean, with dozens of large seaports scattered all over the coast. The long coastline gives easy access to factories located all over the country.

What’s more, Vietnam has developed an extensive railway network spanning 2,600Km, designed for cargo transport and transports goods swiftly from north to south. As the country gets wealthier, Vietnam should catch up with China regarding shipping infrastructure, which will decrease the time necessary to get your goods from the factory to your warehouse in the US.

Made In China Vs. Made in Vietnam: Comparison

To compare China vs. Vietnam directly, we’re going to analyze different aspects of critical importance to investors, such as:

• Labor costs.
• Manufacturing capability/product output.
• Material sourcing.
• Workforce availability.
• Shipping logistics.
• Red tape.
• Production limits.

Beyond these, there are still a few more issues with sourcing from Vietnam. If you want to dive deep into this topic, you can view our post on the Challenges of Sourcing in Vietnam.

Made In China Vs. Vietnam: Labor Costs

Vietnam offers significant advantages over China in terms of labor costs. For example, the average cost of hiring a factory employee in Vietnam is 1/3 of those in China. especially in factories near major cities where the average salary is approaching 30/day in China.

Vietnam’s main advantage over China is that the labor cost is lower, but the output/quality is identical. Chinese wages keep increasing; however, this also keeps happening in Vietnam, with young talent changing jobs often to boost their earning potential. Overall, Vietnam is cheaper than China in terms of labor costs.

Made In China Vs. Vietnam: Manufacturing Capability

China has the largest manufacturing capacity in terms of product choice. Virtually any product can be manufactured in China. Vietnam is a bit more limited in this regard, but the manufacturing capacity exists in Vietnam for most general products.

While China remains the world’s largest manufacturing economy and has more experience, Vietnam is quickly catching up. For example, Vietnam is becoming the biggest footwear exporter; it can manufacture products such as furniture, fashion, packaging, plastics, electronics, and more. However, China holds an edge over Vietnam in producing custom products for companies due to its sheer size.

Made In China Vs. Vietnam: Red Tape

Vietnam has a lot less red tape and regulation for start-ups than China. The Chinese communist government implements strict regulations on factories, and its legal system is hard to navigate for non-natives. In the past, manufacturers struggled to work in China because most factory owners wouldn’t speak English, and now this is better because companies hire English-speaking representatives.

Investors will find it easier to set up their factories in Vietnam because the Vietnamese government is more investor-friendly, and they even have zones where you can get perks as an investor.

Made In China Vs. Vietnam: Workforce Availability

China and Vietnam have large populations: China has 1.4B residents, and Vietnam has 95M residents. The smaller population means that an employer could find millions of factory workers near every city to work at their factory. As a result, millions of workers and factory managers are available in both countries.

• Both China and Vietnam have workers with a strong work ethic that put in long hours and are willing to work hard. While both countries have an educated workforce, China is better due to superior educational institutions and a higher population.

China is a better option for businesses relying on educated workers such as tech/machinery, while Vietnam can also provide a skilled workforce near major cities. Unskilled factory workers are equally available in both countries, and it will be easy to find hundreds or thousands of employees for every significant investment in both countries. The labor productivity in Vietnam is lower than in China, but this is due to China’s larger population.

Made In China Vs. Vietnam: Shipping Logistics

We wrote a complete guide to shipping in Vietnam. China’s infrastructure is vastly superior to Vietnam’s infrastructure, but this didn’t stop major corporations from moving their production to Vietnam. China’s infrastructure near major cities is world-class, and they have the best highways, high-speed rail, and shipping ports. making international shipping easy. China has thousands of shipping companies and forwarders that can ship globally via various shipping methods. Their shipping is affordable and among the most competitive in the world.

China has large harbors, and its ship fleets are enormous, carrying millions of tons of cargo annually. The competitive environment of Chinese shipping companies means that remain low despite high output. The Chinese government has even gone as far as subsidizing international shipping from the country to increase exports. China also has the advantage of a newer infrastructure with a stable power grid that facilitates all shipping. Vietnam does not severely lack this regard as the country has dozens of highways and ports, but the country’s ports are outdated compared to China’s.

Vietnamese shipping companies are also competitive and can ship to the US or Europe at a similar rate to Chinese companies. Many offer door-to-door services and can ship from the factory directly to your US warehouse. Ocean freight takes 3-4 weeks to reach the US from Vietnam, similar to shipping from China. The are also near-identical. So in terms of logistics and international shipping, it’s a tie (despite China’s superior infrastructure).

Made In China Vs. Vietnam: Material Sourcing

Materials are required to streamline production. If the raw materials are unavailable in the country where you manufacture the goods, you’ll have to import the materials, increasing the total costs. Both countries are relatively large and have easy access to raw materials for various products.

As the premier manufacturing country, China will have a more extensive selection of raw materials, and sometimes companies in Vietnam import raw materials such as textiles. Still, the transport cost between Vietnam and China is negligible, and your materials can be transported in as little as a day between the two countries. China holds the edge regarding material sourcing, but most materials should be available in Vietnam.

Made In China Vs. Vietnam: Production Limits

What happens if you need to ramp up production and the factory can’t handle it? Chinese factories have near-unlimited production capability because even when the factory fails to meet your requirements, you can drive to a different factory in the city and get your product made. China has such a tremendous manufacturing capability that tens of thousands of factories are in a single city. This availability means that Chinese manufacturers can supply all buyers.

In Vietnam, it’s much harder to scale a factory if you manufacture a unique product, and you may experience delays in production if your demand exceeds the supply. So if you’re investing in Vietnam, you’ll have to plan the scale you need and build the factory in an area where you’ll have the workforce necessary to supply that scale. In China, this process is much faster because dozens of factories manufacture the same product in every city.

US Vs. China Trade War: How Vietnam Benefits

President Trump’s US-Chinese trade war has led to a shrinking trade between the two largest economies in the world. China and America. The trade war caused US investments in China to decrease, as American companies had to pay higher tariffs to import their goods on US soil. As a result, many investors chose to pack up for alternative countries and manufacture in markets with lower tariffs and labor costs.

Vietnam is the 1st destination for companies leaving China due to the trade war, and this trade war has been one of the biggest economic boosters for the country. Thousands of major companies have closed down their Chinese factories and moved to Vietnam over the last few years. However, some speculate that Vietnam will eventually hit a bottleneck regarding how many factories the country can accommodate.

The trade war has triggered a chain of events that made people speculate on both trade-dependent countries’ futures. Vietnam emerged as the biggest beneficiary, and some reports claimed manufacturers were moving Chinese products to Vietnam and rebranding them as Vietnamese to lower their import tariffs. As a result, while China is losing its market share in exports to the US, Vietnam is exporting more than ever, and Vietnamese goods easily penetrate the US and European markets.

Effectively, the US-China trade war accelerated companies leaving China and moving to Vietnam for lower labor costs. As a result, manufacturers benefit from a low-cost labor force but can also import their goods to the US uninterrupted. Overall, while a mass exodus of manufacturers from China is not likely due to the market’s sheer scale, most companies looking to relocate to the area will eventually consider Vietnam the first destination.

Shoes Made In Vietnam Vs. China

Shoes/footwear is the main Vietnamese export after electronics, and Vietnamese footwear exports currently exceed 22.5B/year. The quality of footwear manufactured in Vietnam is identical, if not better, to footwear manufactured in China, but the labor costs are lower. As a result, the world’s biggest footwear companies are leaving China and moving to Vietnam – including Nike and Adidas.

Adidas cut 50% of their Chinese footwear production and moved it to Vietnam. Nike has also closed down significant factories in China and moved them to Vietnam. In addition, fashion/retail giants such as Zara and HM are also shifting their production to Vietnam.

Footwear is one example where Vietnam has already exceeded China’s manufacturing capability. Currently, Vietnam produces 2x the amount of Adidas shoes that China does. despite the company manufacturing in both countries. Nike has also shifted virtually all sneaker manufacturing for the company to Vietnam. Changes in the footwear industry show how the manufacturing landscape is shifting in Asia, and China is now relying on Vietnam for footwear production more than the other way around.

Other Industries Made In China Vs. Vietnam

Vietnam has a large textile industry, and factories in Vietnam manufacture the same quality goods as factories in China. Clothing and fashion accessories are a 30B/year export industry in Vietnam and one of the country’s fastest-growing industries. Clothing exports in Vietnam grow at an average rate of 10% per year. Vietnam is a top global exporter of textiles and products in the fashion industry. Vietnam‘s bags/luggage industry records a 3.5% growth each year, and the country has a large population of artists who can design bags. Vietnam also produces luxury bags for companies such as Prada.

Vietnam’s top export industry is the electronics and machinery industry, estimated at 117B/year. The machinery industry has increased 300% since the Trade War started. Vietnam also has a significant furniture and wood manufacturing sector. Regarding furniture exports, Vietnam currently ranks as the 2nd largest furniture exporter in Asia after China. In addition, Vietnam is the 5th largest wood exporter globally, with over 4500 wood production companies in the country.

How To Move Your Manufacturing To Vietnam

Want to move your company to Vietnam? No matter the industry you’re working in, sourcing the best suppliers in the country is detrimental to success! Rather than rushing into a commitment with the first manufacturer, we suggest exploring your options and analyzing whether they’re legitimate and can meet your demands. The process of figuring out if you should move to Vietnam includes audits and checking their trustworthiness. Will the manufacturer have the finances and capability to manufacture your product? Are they going to meet your deadlines? Will the products be of high quality? We can help you find suitable suppliers in our company.

Cosmo Sourcing // Your Trusted Partner In Vietnam

Please email us at info@cosmosourcing.com

If you are interested in sourcing from Vietnam, feel free to reach out to the team at Cosmo Sourcing; we have been helping clients source from Vietnam since 2014. Cosmo Sourcing has the skills and the team to find you the best supplier possible. We are also established in China and are among the only companies that can find suppliers in China and Vietnam and pick the one you think is best.

Our Vietnam Sourcing services allow you to access new manufacturers that you would not be able to in China and avoid Tariffs. Our services are designed to do everything to take your idea, turn it into a product, and ship it to the final destination. Cosmo can do everything from creating a product spec sheet, validation, sourcing, ordering and evaluating samples, arranging inspections, finding freight forwarders, quality assurance, negotiations, and shipping. We aim to handle every single step of your business in Vietnam for you.

If you start a new business, finding products and suppliers for your products is one of many things, you need to handle. Our services are designed to handle every part of your business in China and Vietnam, so you can FOCUS on the rest of growing your own business.

We have helped clients from Fortune 500 companies, brick-and-mortar stores, FBA sellers, and brand-new businesses. So don’t hesitate to contact us and let us know how we can help you.

Covid-19, costs and geopolitics are driving the iPhone-maker to manufacture and sell its gadgets elsewhere

B y a dusty stretch of the deafening road from Chennai to Bengaluru lie three colossal, anonymous buildings. Inside, away from the din of traffic, is a high-tech facility operated by Foxconn, a Taiwanese manufacturer. A short drive away Pegatron, another Taiwanese tech firm, has erected a vast new factory of its own. Salcomp, a Finnish gadget-maker, has set one up not far away. Farther west is a 500-acre campus run by Tata, an Indian conglomerate. What these closely guarded facilities have in common is their client: a demanding and secretive American firm known locally as “the fruit company”.

The two countries are the main beneficiaries of Apple’s strategic shift. In 2017 Apple listed 18 large suppliers in India and Vietnam; last year it had 37. In September, to much local fanfare, Apple started making its new iPhone 14 in India, where it had previously made only older models. The previous month it was reported that Apple would soon start making its MacBook laptops in Vietnam. Some of Apple’s newer gadgets show the way things are going. Almost half its AirPod earphones are made in Vietnam and by 2025 two-thirds will be, forecasts JPMorgan Chase. The bank reckons that, whereas today less than 5% of Apple’s products are made outside China, by 2025 the figure will be 25% (see chart 1).

As Apple’s production system is shifting, its suppliers are diversifying away from China, too. One crude measure of this is the share of long-term assets that Taiwanese tech-hardware and electronics firms have located in China. In 2017 the average figure was 43%. Last year that had fallen to 31%, according to our estimates using company and Bloomberg data.

The most urgent reason for the scramble is the need to spread operational risk. Two decades ago the garment industry beefed up its operations outside China after the sars epidemic paralysed supply chains. “sars made it very clear to everyone operating in China that you needed a ‘China1’ strategy,” observes Dominic Scriven of Dragon Capital, an investment firm in Vietnam. Covid taught tech firms the same lesson. Lockdowns in Shanghai in the spring temporarily shut a factory run by Quanta, a Taiwanese firm, believed to be making most of Apple’s MacBooks. Avoiding this kind of chaos is the “primary driving force” for Apple’s supply-chain moves, says Gokul Hariharan of JPMorgan Chase.

Another motive is containing costs. Average wages in China have doubled in the past decade. By 2020 a Chinese manufacturing worker typically earned 530 a month, about twice as much as one in India or Vietnam, according to a survey by JETRO, a Japanese industry body. India’s ropey infrastructure, with bad roads and an unreliable electrical grid, held the country back. But it has improved, and the Indian government has sweetened the deal with subsidies. Vietnam offers tax rebates and holidays, too, as well as free-trade deals, including one recently signed with the eu. Bureaucracy around visas and customs remains a pain. But the work ethic is similar to that in China: “Confucius still gets them out of bed in the morning,” says one foreign executive in Vietnam.

Apple also increasingly sees locals as potential customers, particularly in India, the world’s second-largest smartphone market. Though iGadgets are too pricey for most Indians, that is changing. Apple said in July that its revenues in India had nearly doubled in the past quarter, year on year, driven by the “engine” of iPhone sales.

This is diminishing China’s relative importance as a consumer market. At its high point in 2015, China accounted for 25% of Apple’s annual sales, more than Europe. Since then its share has steadily shrunk, to 19% so far this financial year (see chart 2). By the sounds of it Xi Jinping, China’s president, would like it to fall further. At a Communist Party shindig on October 16th he urged “self-reliance and strength in science and technology”, suggesting that foreign importers may face stiffer competition from Chinese national champions. He repeated the phrase five times.

An iWire act

This points to perhaps the biggest reason for Apple’s shift: geopolitics. Rising Sino-American tensions are making China an awkward place to do business. Heightened Chinese sensitivity is adding friction. This summer Apple reportedly had to ask Taiwanese manufacturers to label their products “Made in Chinese Taipei” to appease newly finicky Chinese customs officials (at the risk of angering Taiwanese ones).

America, for its part, has become more aggressive in its competition with China’s domestic tech industry. On October 7th America announced a ban on “us persons” working for some Chinese chipmakers. On the same day it added 30 Chinese companies to a list of “unverified” firms its officials had been unable to inspect. Apple had reportedly been about to sign a deal to buy iPhone memory chips from one such company, ymtc, which can offer low thanks in part to Chinese government subsidies. Following America’s export controls that deal was put on ice, according to Nikkei, a Japanese newspaper.

The question is whether shifting production out of China will be enough to avoid future crackdowns. Even as Apple makes more of its gadgets outside China, it is no less reliant on Chinese-owned companies to build them. Chinese manufacturers such as Luxshare, Goertek and Wingtech are taking an increasing share of Apple’s business beyond China’s borders.

Luxshare and Goertek are reported to be making Airpods in Vietnam, helped by the fact that some Taiwanese rivals, like Inventec, have scaled back their work for Apple in recent years. In September press reports hinted that the Indian government might let some Chinese companies set up production facilities in India. Chinese companies’ share of iPhone electronics production will rise from 7% this year to 24% by 2025, believes JPMorgan Chase, which predicts that in the next three years Chinese companies will increase their share of production across Apple’s range of products.

Could Chinese manufacturers outside China be targeted by American sanctions? For now this is unlikely, believes Nana Li of Impax, an asset manager. “There are no handy alternative [suppliers] available with the same level of experience, efficiency and cost-effectiveness,” so cutting them off would hurt American firms, she notes. In time, that may change. Countries like India and Vietnam are keen to cultivate their own suppliers. Tata is reportedly in talks with Wistron, a Taiwanese manufacturer, about making iPhones in India. Indian firms report that “the fruit company” is discreetly on the hunt for local suppliers.

Given the growing rift between America and China, it is sensible for Apple to place some side-bets, before restrictions go any further. Chinese firms outside China are safe for now, says one Western investor in Asia. But “the noose is tightening”. ■

To stay on top of the biggest stories in business and technology, sign up to the Bottom Line, our weekly subscriber-only newsletter.

This article appeared in the Business section of the print edition under the headline The end of the China affair

Business October 29th 2022