Apple CEO Tim Cook poses in front of a new MacBook Airs running M2 chips display during Apple's annual Worldwide Developers Conference in San Jose, California, June 6, 2022.Apple CEO Tim Cook poses in front of a new MacBook Airs running M2 chips display during Apple’s annual Worldwide Developers Conference in San Jose, California, June 6, 2022.

Apple is in talks to make its products in Vietnam, according to a report.

As it battles supply chain disruptions related to Covid lockdowns and increased U.S.-China trade tensions, it shows how Apple is attempting to expand its manufacturing outside of China.

According to the report, Apple has asked suppliers to set up a production line for MacBooks and Apple Watches. According to reports, the company is still talking to build speakers in the country.

Mac sales fell over 10% on a year-over-year basis and were short of expectations. Apple iPad revenue was down, but it was still better than expected. Tim Cook said the strong dollar was to blame.

Some of Apple's iPad production was moved to Vietnam in June, according to reports.

Requests for comment were not immediately responded to by an Apple spokesman.