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Apple is carrying out de-Chinaization in a low-key manner. Unlike the assembly business, which has a relatively high focus, Apple’s de-Chinaization in the supply chain is happening quietly, even some people cannot believe it. China supplier high demand Factory price CNC milling materials
Recently, a set of data came out. After disassembling the iPhone 15, a disassembly agency conducted a cost analysis and obtained the proportion of parts provided by different countries or regions in the iPhone 15. It can be seen from this data that components provided by Chinese suppliers only account for 2% of the cost of the iPhone 15.
Apple is de-Chinese
This data has been considered false news by many people. After all, judging from the supply chain manufacturers announced by Apple, Chinese suppliers account for almost half of Apple’s supply chain. It is impossible to think that their cost ratio is only 2 %. In fact, this data is most likely true, or almost the same. China supplier high demand Factory price CNC milling materials
In recent years, the cost proportion of components provided by Chinese suppliers in iPhones has been gradually declining. In the iPhone 12 series, mainland Chinese manufacturers accounted for 4.5%, and in the iPhone 14 series, mainland Chinese manufacturers accounted for 3.8%. By the time of the iPhone 15, China The proportion of parts and components provided by mainland manufacturers is only 2%.
In contrast, the proportion of American parts has gradually increased, the proportion of Japanese parts has remained at the original level, and the proportion of parts supplied by Taiwan is increasing.
It is not difficult to see from these data that although Cook has been shouting that the Chinese market is very important to Apple every year, in fact Apple is undergoing de-Chinaization and has achieved certain results. In fact, there are indeed many Chinese suppliers in Apple’s supply chain, but most of the Chinese suppliers provide relatively cheap parts.
For example, components such as prisms, packaging modules, backplane glass, batteries, cameras, and acoustic components are mostly provided by Chinese manufacturers, and assembly is mainly completed in factories in mainland China. However, Apple’s core foundries such as Wistron and Foxconn and others are mostly Taiwanese companies. China supplier high demand Factory price CNC milling materials
In fact, the main reason why Apple is mainly assembled in factories in mainland China is that Apple needs the strong production capacity and relatively cheap labor made in China. In fact, Apple is also working on relocating assembly to India. This is the main reason why Apple has recently brought Foxconn, Wistron and other foundries to build factories in India.
What will be the consequences?
In fact, Apple has been trying to de-China for more than a day or two. While transferring assembly capacity, Apple is also kicking a large number of Chinese manufacturers out of Apple’s supply chain, including dozens of Chinese companies such as OFILM. To some extent, this behavior has also had a certain impact on the normal operations of Chinese manufacturers.
CCTV has long said that Chinese manufacturers should get rid of Apple dependence. On the one hand, this means that upstream and downstream companies should change their inherent concepts and believe that the technical level of manufacturers in Apple’s supply chain must be better. On the other hand, it also means that Chinese manufacturers have sought new development paths outside of Apple’s supply chain.
Since Huawei was included in the entity list by the United States, many netizens believe that China should launch reciprocal countermeasures and ban Apple from selling in the Chinese mainland market. It’s just that the ban on selling apples has never started, and it is difficult to start. Some people in the industry believe that this is because Apple occupies an important position in China’s supply chain. If Apple is banned, it will have a considerable impact on related industries in China. China supplier high demand Factory price CNC milling materials
In fact, the reason why China has not banned the sale of Apple is, on the one hand, considering that Apple has always complied with relevant laws and regulations in the Chinese market. A ban on the sale of Apple will definitely have an impact on China’s good business environment and business reputation. On the other hand, considering that many domestic consumers are more accustomed to Apple’s ecology, it is difficult to leave iPhones and other products.
In fact, Apple has been protecting domestic Apple fans. Apple CEO Cook has visited China more than 20 times since taking office in 2012. He recently visited China and donated 25 million yuan to rural areas in China. It is enough to see from this that although Apple has been de-Sinicizing, it is also very concerned about its reputation in the Chinese market.
In a sense, Apple’s de-Chinaization has had a big impact on many Chinese suppliers. However, compared with a sales ban, this method is more conducive to Apple leaving the Chinese market, and the same is true for the Chinese market. .
With the strong return of Huawei and the gradual development of other smartphone manufacturers, the domestic mobile phone component supply chain is creating a path that does not rely on Apple orders. For example, OFILM’s revenue began to pick up and grow because it received orders from Huawei, and Goertek also began to expand its production capacity because of orders from Huawei. China supplier high demand Factory price CNC milling materials
Huawei’s orders can effectively help manufacturers that are developing parts of the high value chain and avoid the embarrassing situation of bankruptcy due to plummeting profits due to being abandoned by leading customers such as Apple. This will form a virtuous cycle. After Chinese manufacturers achieve breakthroughs in the high-value chain, they will be able to effectively strengthen the competitiveness of Huawei’s products. The improvement of Huawei’s product competitiveness can in turn drive sales growth and order volume growth, thereby helping China Manufacturers develop further.
There is no doubt that although Apple now has a huge influence in the Chinese market, with the impact of Apple’s series of de-China moves and Huawei’s strong return, Apple is destined to continue to decline in the Chinese market, and Huawei will be able to gain more domestic Manufacturer support. In the future, the situation of the two in the Chinese market and even the international market is expected to gradually change. China supplier high demand Factory price CNC milling materials