• Apple is expanding smart home production in Vietnam with BYD, targeting 2026-2027 launch for new robotics products
  • The move represents Apple's strategic pivot to bring AI into the physical world and diversify manufacturing away from China
  • Morgan Stanley analysts view the robotics initiative as positioning Apple to compete more effectively with other tech giants

Apple Inc. is making a significant push into the robotics market, according to people familiar with the matter, with plans to manufacture a HomePod-style display and a motorized tabletop robot through expanded operations in Vietnam. The tech giant is working with supplier BYD on power components for these devices, with market availability expected between 2026 and 2027.

The expansion into Vietnam represents Apple's latest effort to diversify its manufacturing footprint beyond China amid ongoing geopolitical tensions and supply chain concerns. "This move brings AI into the physical world and positions Apple to compete with other major tech players in robotics," Morgan Stanley analysts noted in recent research, though the firm declined to comment further when reached.

Apple's manufacturing partner BYD will supply critical power components for the new robotics lineup, building on an existing relationship that spans multiple product categories. The Vietnamese operations are expected to focus initially on the HomePod-style display and tabletop robot before potentially expanding to other robotics products.

Efforts to establish production facilities in Vietnam have accelerated in recent months, according to people familiar with the manufacturing plans. The company has been quietly staffing up engineering teams with robotics expertise, though Apple representatives did not respond to multiple requests for comment on the specific timeline or product details.

The robotics initiative comes as Apple seeks new growth vectors beyond its core iPhone business. While the company's financial performance remains strong, with consistent revenue growth driven by its diverse product portfolio, the robotics market represents a potentially significant expansion into the smart home automation space currently dominated by competitors like Amazon and Google.

Industry watchers see the move as part of a broader trend among tech giants exploring AI-powered physical devices. NVIDIA and other companies are also making substantial investments in robotics and AI integration, with BYD emerging as a key supplier for power components across multiple industry players.

Manufacturing in Vietnam could help Apple mitigate risks associated with tariffs and supply chain disruptions while tapping into the country's growing electronics manufacturing ecosystem. The expansion is expected to create hundreds of jobs in Vietnam and further establish the country as an alternative to China for high-tech production.

Correction: An earlier version of this article misstated the expected launch timeline. Products are anticipated between 2026 and 2027, not 2025-2026.