Meta Moving Half Of Quest Production To Vietnam To Mitigate China Tariffs

Meta is moving up to half of Quest production to Vietnam as a hedge against a possible trade war between the US and China.

US President-elect Donald Trump has repeatedly said he plans to increase tariffs on Chinese imports, which could potentially drive up the cost of products produced in China, such as Meta Quest headsets.

Meta Quest 3 & Apple Vision Pro Production Costs Estimated

A supply chain analysis firm estimated the costs of each component in Meta Quest 3 and Apple Vision Pro.

UploadVRDavid Heaney

The Information first reported the production diversification to Vietnam earlier today, saying that it will take place "over several years", and a person familiar with the plan confirmed to UploadVR that it's taking place.

The person tells UploadVR that the move has been in the works for years, since before the COVID-19 pandemic, but was paused until now amid the resulting supply chain disruptions.

While this likely won't change anything from the perspective of existing Quest users, it might help Meta avoid having to raise the price of Quest headsets if the potential tariffs do become meaningful. Back in 2022 Meta temporarily raised the price of Quest 2 by $100 for almost a year, which it said was in response to global supply chain issues, and this resulted in a significant reduction in Quest 2 sales.

Meta Sees VR Revenue Drop Following Quest 2 Price Hike

Reality Labs quarterly revenue dropped year-over-year in Q3 for the first time since Meta started reporting the division’s financials. Reality Labs is the division of Meta behind Quest, smart glasses, Meta Avatars, Horizon, and research & development toward future devices such as the neural wristband project and AR glasses. The

UploadVRDavid Heaney