Regardless of its well-publicized strikes to chop its dependence on China as its primary provider, Apple has additionally been growing the variety of companies it really works with for manufacturing with within the area.
By January 2024, Apple’s provide chain had spent $16 billion in transferring away from China, and as of April 2024, 14% of all iPhones are being manufactured in India. However in response to an evaluation by Nikkei Asia of Apple’s public reporting, the corporate is continuing to deepen its relationships with China.
“Chinese language suppliers have fashioned the most important camp of Apple suppliers since 2020, and their quantity elevated to 52 final yr from 48 in 2022,” write Cheng Ting-Fang and Lauly Li. “The variety of manufacturing or improvement amenities in China — together with these owned by home and overseas firms — grew by 10 to 286.”
On the similar time, Apple reportedly used fewer suppliers from Taiwan, the US, Japan, and South Korea. Countering that, suppliers in Vietnam rose 40% to 35 throughout 2023, whereas Thailand grew round 33% to 24.
But the publication claims that roughly 37% of Apple suppliers in Vietnam are from China and Hong Kong. That features Luxshare, which builds AirPods, and iPad assembler BYD.
Nikkei Asia says that the variety of suppliers in India stayed on 14 in 2023. Nonetheless, that 14 now contains that Tata Group, which has been buying iPhone manufacturing amenities within the nation.
Apple is dedicated to expanding its production in India, and Tim Cook has additionally mentioned that the corporate is seeking to strengthen its commitments to Vietnam. Prepare dinner mentioned this throughout a visit round South Asia, the place he additionally mentioned Apple would have a look at investing in Indonesia, and has now spent $250 million in increasing an AI campus in Singapore.
On the similar time, Apple has elevated its R&D amenities in China with two lab expansions. Prepare dinner additionally mentioned in March 2024 that China stays crucial to Apple.
It is unlikely that Apple may ever entirely leave China, even when it ought to need to. Within the meantime, the corporate seems to be juggling each political and logistical pressures, as US/China trade tensions proceed, but in addition Chinese language problems with energy provides and COVID measures have affected production.
Then whereas Nikkei Asia‘s reporting is fully based mostly on Apple’s public filings. These filings are annual — and so they have been completely different when masking 2022 as an alternative of the newest 2023. Over the yr 2022, Apple lower eight suppliers in China, whereas then including solely 5 new ones.
It was additionally in 2022 that Apple elevated its Indian provide companies to 14, having been on 11 for 2021.