Apple Supplier List Shows Gradual Production Shift From China To India
Apple supplier list has revealed that the company is relying on fewer companies in China as compared to India. It is an indicator of the silicon giant’s move to lower its dependence on a single country for production. It would not be wrong to say that Apple has a “symbiotic” relationship with China. Apple’s CEO Tim Cook says that their relationship with China lasted for over 30 years and the company is keen to refactor that relationship. Together with that, the company wants to spread its manufacturing into other territories as well.
Apple Supplier List Represents Company’s Direct Spending
Apple’s Supplier List was published back in May. It represents 98% of the company’s direct spending on materials, manufacturing as well as assembly of products for the fiscal year of 2022. The list is comprehensive, covering almost all manufacturers of note within its supply chain. According to SCMP, Apple removed 19 suppliers while adding 18, on a global basis. Eight companies from China were cut from the list, while only five were added.
Despite the reduction, let me tell you that China is still the main country of interest when it comes to Apple production. The reason is that 151 of the top 188 disclosed suppliers have facilities there. The mere number of suppliers clearly unveils that Apple still relies on China. It would not be wrong to say that situation won’t change quickly. However, the year-on-year differences show a slow transformation. At the same time, the list of suppliers in India has increased to 14. On the other hand, the silicon giant has been increasing its operations in India for quite a while. Apple moved 7% of global iPhone production to India with a 5% production target originally set for Spring 2023.
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