US-China tech war: Apple puts China squarely at the apex of supplier list, bucking talk of decoupling and scrutiny of its vendors

[onebyone]

US-China tech war: Apple puts China squarely at the apex of supplier list, bucking talk of decoupling and scrutiny of its vendors

• Nearly one-third of the newly shortlisted companies are from the Chinese mainland, according to a Post analysis of Apple’s supplier list for 2017 and 2020

• The increase in the number of mainland companies used by the iPhone maker highlights the importance of China in global hi-tech supply chains

Apple’s supply chain extends deeper into China despite talk of decoupling

Fifteen mainland-based firms were added to Apple’s supplier list over the past three years despite worsening Sino-US relations and supply chain disruptions caused by the pandemic.

www.scmp.com

Nearly one-third of the newly shortlisted companies are from the Chinese mainland, according to a South China Morning Post analysis of Apple’s supplier list for 2017 and 2020. Among the 52 new names added to the latest list, 15 are from the mainland, with several based in the southern tech hub of Shenzhen and others hailing from eastern Jiangsu province.


Suppliers from the US and Taiwan ranked second in terms of numbers, each with seven new shortlisted companies.

 

[Mirzali Khan]

What does this mean?

 

[FairAndUnbiased]

What does this mean?

Apple used to be "Designed in California, Parts Fabricated in Japan, Assembled in China"

Now it is "Designed in California (and Apple Shanghai R&D), Parts Fabricated in China, Assembled in China"

 

[CAPRICORN-88]

What does this mean?

It means they can shift their assembly plants outside of China but component parts from China are indispensable, like it or not.

logistics is another factor.

 

[Yongpeng Sun-Tastaufen]

Apple knows it cannot compete without the Chinese in China doing part of the R&D.

 

[Viva_Viet]

It means they can shift their assembly plants outside of China but component parts from China are indispensable, like it or not.

logistics is another factor.

Lie, if US slap 25% tariff on Iphone, then those part suppliers will follow Apple and move to another countries, too .

 

[AViet]

Without the combination of Chinese (including Taiwanese) technologies, workforce and managerial skills, both Apple and Tesla would be a big zero.

 

[PakFactor]

Lie, if US slap 25% tariff on Iphone, then those part suppliers will follow Apple and move to another countries, too .

It’s not easy to replicate the Chinese man power it’s all good talk you can replace China. But the honest truth is you just can’t, it’s a central part in the global supply chain and soon to be the largest consumption economy in the world.

 

[CAPRICORN-88]

Lie, if US slap 25% tariff on Iphone, then those part suppliers will follow Apple and move to another countries, too .

Commenting like a simpleton again.

Easier said than done.

 

[Unite & Defend]

Upper tier decision makers in industry know full well no country has the specialised resources that China possess. From QC to Landed Cost there is no rival.
You can move operations but expect continuous disruptions.

 

[Beast]

Lie, if US slap 25% tariff on Iphone, then those part suppliers will follow Apple and move to another countries, too .

Go ahead and slap, we are waiting.

 

[ZeEa5KPul]

Lie, if US slap 25% tariff on Iphone, then those part suppliers will follow Apple and move to another countries, too .

If you're fiending so badly to make iPhones that you fantasize all day about Apple factories coming to Vietnam, I've got some advice for you: Prepare a guest worker visa application to China and go work at an Apple factory there. Because that's the only way you'll ever get to do it.

 

[dbc]

What does this mean?

here is the actual suppliers list straight from apple. It blows a big hole in Chinese propaganda when you start to dig into the components that are sourced from Chinese companies in China. Glue, fasteners, printed circuit boards, speakers, connectors and batteries and so on...

https://www.apple.com/supplier-responsibility/pdf/Apple-Supplier-List.pdf

of course, I haven’t researched the whole list but if only $8.46 in labor and parts for the iPhone X comes from China then it can’t really be high value , high tech components. Readers are welcome to research the list and form their own conclusion.

The global information provider IHS Markit estimates that for every iPhone X that gets sold, $110 is sent to Samsung, the South Korean conglomerate that makes iPhone displays… Another $44.45 finds its way to the iPhone’s memory chip suppliers: Toshiba Corp. of Japan and SK Hynix Inc. of South Korea. A little money goes to Singapore; a little goes to Brazil; a little goes to Italy; and a little goes to Corning, N.Y. The vast majority of those dollars go to Apple Park in Cupertino, Calif., while China earns only an estimated $8.46 for the labor and parts that it supplies.

Apple's iPhone isn’t made in China — it’s made everywhere

Apple's iPhone isn’t made in China, it’s made everywhere. Apple's iPhone may be calculated as a Chinese import, but is reality…

macdailynews.com

https://mms.businesswire.com/media/20171108005056/en/622977/5/iPhoneX_cost_summary.jpg?download=1

 

[Yongpeng Sun-Tastaufen]

China earns only an estimated $8.46 for the labor and parts that it supplies.

New flash. USD is not used in China. Yuan is used in China.

 

[Viva_Viet]

If you're fiending so badly to make iPhones that you fantasize all day about Apple factories coming to Vietnam, I've got some advice for you: Prepare a guest worker visa application to China and go work at an Apple factory there. Because that's the only way you'll ever get to do it.

There are many CN part suppliers fled to VN to avoid trade war now, offering good enough jobs . Iphone come or not, not so special .

I just want u guys stop lying that if Iphone leave CN, then part suppliers will still stay in CN. thats a cheap lie.

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Chinese Suppliers Are Moving To Vietnam
Want proof Vietnam is the next big thing in Asia? Look at what domestic manufacturers in the area are doing. Chinese manufacturers are on the lookout for lower labor costs, and they're able to save as much as 2/3rds by shifting manufacturing to Vietnam. If you've dealt with a Chinese manufacturer in the last ten years, there's a chance they've started producing in Vietnam and moving part of their operations there.

The larger your Chinese supplier is - the more likely they've outsourced some of their production to Vietnam. Many Chinese manufacturers are now "double-dealing" and manufacturing part of their production in China while manufacturing the rest in Vietnam. Some Chinese companies keep their main production lines in China while manufacturing small parts in Vietnam, while others have completely moved their factories to Vietnam.

If you've worked in China for a long time and are accustomed to dealing with Chinese suppliers - this knowledge will prove useful in Vietnam as many cultural nuances are the same in both countries. Chinese are also influencing Vietnamese suppliers and passing down knowledge to the workers. It's not uncommon to walk into a 5,000 person factory in Vietnam and find out 500 workers are from China.

We at Cosmo Sourcing find that most mid-level managers in both countries are fluent in 3 languages: Chinese, Vietnamese, and English. Transferring manufacturing from China to Vietnam is a relatively straight-forward process. If you have specification sheets, product documentation, and checklists written in Chinese/English - you'll find it easy to translate them to Vietnamese.

How to Move Your Supplier From China To Vietnam Guide // 5-Steps To Move Your Manufacturer To Vietnam — Cosmo Sourcing

Ready to move manufacturing from China to Vietnam? Do you want to learn the ins and outs of shifting to Vietnam? Then, this guide is for you. Welcome to the ultimate guide on moving manufacturing from China to Vietnam. In this guide, we’ll cover the fundamentals of taking your existing production ca

www.cosmosourcing.com

It’s not easy to replicate the Chinese man power it’s all good talk you can replace China. But the honest truth is you just can’t, it’s a central part in the global supply chain and soon to be the largest consumption economy in the world.

Actually those CN part suppliers who suffering 25 % tariff are moving to VN now.

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The larger your Chinese supplier is - the more likely they've outsourced some of their production to Vietnam. Many Chinese manufacturers are now "double-dealing" and manufacturing part of their production in China while manufacturing the rest in Vietnam. Some Chinese companies keep their main production lines in China while manufacturing small parts in Vietnam, while others have completely moved their factories to Vietnam.