Despite the U.S. government’s attempts to rein in Beijing’s tech ambitions, Apple is tapping more suppliers in China to produce the next-gen “iPhone 13,” a sign that the country’s technological competitiveness is continuing to increase.
Lauly Li and Cheng Ting-Fang for Nikkei Asia:
Chinese electronics maker Luxshare Precision Industry will build up to 3% of the upcoming iPhone 13 series, winning orders away from Taiwanese rivals Foxconn and Pegatron, Nikkei Asia has learned. Apple is slated to produce between 90 million and 95 million of the new iPhones through January.
Luxshare will start building the iPhone 13 Pro — as the premium model is expected to be called — this month, according to sources, a major breakthrough for a company that has never produced iPhones on its own. Newcomers to the Apple supply chain normally start out making older iPhone models…
Apple boasts the world’s most complex consumer electronics supply chain, churning out roughly 200 million iPhones, 20 million MacBooks and tens of millions of AirPods a year. The company’s notoriously high manufacturing standards mean that any company in its supply chain is seen as being among the best in its field.
The rise of Chinese Apple suppliers comes at the expense of rivals in the U.S., Taiwan, Japan and South Korea, several of whom are either seeing their share of orders shrink or who have dropped out of the Apple supply chain completely.
MacDailyNews Take: Apple cannot rely on one major supplier for anything. Competition drives down costs and keeps them low, so the more qualified suppliers Apple has to choose from and enter into competition with major suppliers and assemblers like Foxconn, the more honest major suppliers and assemblers have to be with their pricing.
MDN’s response may be economically correct, at least in a perfect world where honor, honesty, and fair trade exists. Such is not the case when dealing with China 🇨🇳. Apple should expande its supplier base outside of China to force China to be more honest and forthright while driving down businesses costs.
Unfortunately Dlvdm, that effort died when Biden was inserted.
I agree! I’m still waiting for the inserted ice cream occupier to sanction China for the recent computer hacks on US businesses. How long should we wait? Maybe he fears China will sanction the import of art from the US. That would put a dent in Joe’s commie cone for sure! Lick, drip, drool
By all accounts, Apple is trying to diversify outside China. The problem is that very few other countries have millions of workers with the requisite skill set and work ethic. The volume of product required to satisfy Apple customers (without huge price increases or a major backlog of orders) is vastly greater than any of its competitors need “worry” about.
For my new calendar…
Did you catch AOC’s fake mask photoshoot on the steps of the Capital? By all accounts (catch the video before it is deleted), she is maskless in a tightly packed crowd of a hundred maskless superspreader deltaporn fans… she and Senator Ed Malarkey (Dem from MA) both put their fake masks on SECONDS before they snap the photo. Those are the only two masked up in the photo. Yeppp… masks off immediately after the photo. Maybe Pelosi will arrest her (which would be a good thing). Shouldn’t we “worry” about the lefty wacko Democrat photo pornfarce sweeping the nation?
(If you are reading, this is another one for the calendar I bought. One may not be enough to document all the crap being shoveled on US law abiding citizens).
Same lies over and over Apple cannot find labor, blah, blah, blah — 🐂💩!!
Apple the world’s richest company in history, the world’s first company approaching $2.5 trillion and recently Fortune 500 declaring Apple is now the most profitable company in the world.
They can get get it done from the labor pool on planet Earth to choose from!!…
An alternative explanation is that the CCP wants (or needs) dollars. Chinese priciing has little to do with standard microconomic theory.
That’s pricing (priciing) and microeconomic (not microconomic). Apologies for the misspellings.