Meta’s moving half of Quest VR headset production out of China

Meta’s moving up to half of Quest VR headset production to Vietnam to avoid tariffs

According to a report from The Information (paywalled), Meta is moving up to half their Quest VR headset production capacity away from China. This move will help the company avoid tariffs, as US President-elect Donald Trump aims to increase the cost of Chinese imports.

Meta is reportedly moving much of its production capacity to Vietnam, which will take place “over several years.” This move has reportedly been in the works for several years. Ultimately, this move was delayed until now due to supply chain disruptions during and after the COVID-19 pandemic.

If the US adds tariffs on Chinese imports, Meta will be forced to increase the price of its VR headsets. With production moving to Vietnam, Meta hopes to avoid China-focused tariffs, allowing it to maintain its current Quest VR headset pricing. Headset pricing is critical to Meta, as forced price increases will reduce headset sales. That wouldn’t be good for the VR market, as headset sales impact software and accessories sales.

Like Meta, many businesses are moving production away from China. Many are expecting a trade war between China and the US. However, Trump has promised to place tariffs on all imports. His “universal tariff” plan may force price increases anyway. Regardless, higher tariffs are expected on Chinese goods, making Meta’s move a solid plan.

You can join the discussion on Meta reportedly shifting Quest Headset production out of China on the OC3D Forums.