Apple has just announced a list of global suppliers for 2023, showing that relations with China are increasingly strengthened, while expanding production in Southeast Asia and India. According to Nikkei, it emphasizes that Apple is trying to balance politics and business.
Nikkei analysis shows that Apple has increased the number of suppliers based in China and factories here, while reducing the number of suppliers in Taiwan (China), the US, Japan and Korea. Quoc. In total, there are 187 companies supplying Apple.
China accounts for the majority (52/187 suppliers, 286 factories), up from 48 in 2022. The number of Apple suppliers in Vietnam increased by 40% to 35 in the same period, while in Thailand it increased by about 1 /3 to 24, in India still maintaining 14.
According to analysis, 37% of the 35 suppliers in Vietnam come from China and Hong Kong (China), including Luxshare, Goertek, BYD. All three have expanded capacity to serve Apple.
The iPhone maker’s strategy contrasts with compatriots such as Dell, which wants to eliminate all chips and components made in China, and HP, which is asking suppliers to step up in Southeast Asia and Asia. Mexico.
More than any other business, Apple is “walking a tightrope” between Washington and Beijing. Not only does it play an important role in the supply chain, China also contributes significantly to Apple’s revenue, 17% in the fourth quarter of 2023.
Recently, CEO Tim Cook acted as an “ambassador” for Apple in Asia – Pacific. In March, he went on a one-week business trip to China. Here, he not only met with leaders from major suppliers but also with senior government officials. He affirmed “There is no supply chain in the world more important to us than China,” according to the sheet China Daily.
A few weeks later, he visited three Southeast Asian countries: Vietnam, Indonesia and Singapore. Apple said it will increase spending on suppliers in Vietnam.
Karen Ma Li-Yen, director of emerging regions cooperation at consulting firm IEK, said that Vietnam and Thailand are currently the two most popular destinations for technology firms and their supply partners.
According to Ma, suppliers do not tend to reject China completely. Annabelle Hsu, technology analyst at research firm IDC, shares the same opinion. Overall, he said, China still has the most complete supply chain for laptops, computers and smartphones in the world. This country continues to be the center of suppliers of important components and parts for computers and phones. However, as the trend of diversification increases, shifting the supply chain is a complex process that takes time.
(According to Nikkei)
