Apple fortifies supply chain in China while increasing presence in India and Southeast Asia
In a strategic balancing act, Apple is simultaneously increasing ties in China while also expanding in India and Southeast Asia and India.
Anusuya Lahiri for Benzinga :
In 2023, Apple increased its number of China-based suppliers and manufacturing sites, reducing its reliance on suppliers from Taiwan, the U.S., Japan, and South Korea…
Apple publishes an official list of its suppliers nearly every year. The most recent list includes 187 companies, accounting for 98% of the company’s procurement for fiscal 2023.
Since 2020, Chinese suppliers have become the largest group within Apple’s supplier network, growing to 52 in the last year from 48 in 2022. The number of manufacturing or development facilities in China, including those owned by domestic and foreign companies, increased by 10 to 286.
As Apple accelerates its supply chain shift to Southeast Asia amid the ongoing U.S.-China tech conflict, its ties with China continue to deepen.
The number of Apple suppliers in Vietnam surged by 40% to 35 last year, while the number in Thailand increased by about a third to 24. The number of suppliers in India remained stable at 14.
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MacDailyNews Take: This is one long term way out of the China miasma: grow everything to the point where, if one had to go quickly, the others would be in a position to absorb the production requirements.
This way, China doesn’t retaliate (too much), since they’re still seeing growth in investments into the country.
It’s a simple plan that could work long term: Grow China 1% annually while pumping substantial investment into the other countries until production is better diversified, more balanced, and Apple’s risk is mitigated by no longer being so dependent on China and its authoritarian whims. Of course, this would take many years, the luxury of which Apple may not have.
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