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Apple is slowly adding more Chinese Companies to its Supply Chain and away from Taiwan

18.5 Cover - Supply Chain News - Rumors

 

Earlier this month Patently Apple posted a report titled "Chinese News Site thinks Apple should be Sharing more of its iPhone Profits in China and with Chinese Companies." Yet behind the scenes Apple is in fact shifting more business to China every year. While Apple suppliers are preparing to open plants in Eastern Europe and Mexico in case the U.S. – China trade war escalates, Apple is quietly tapping into more Chinese suppliers for its components.

 

Today a supply chain report stated that Apple is continuing to expand it's supply chain partners in China for iPhone, iPad and MacBook devices. Apple is seeking to effectively reduce production costs, prompting Taiwan supply chain players to develop new businesses and scramble for patronage from potential China customers.

 

For instance, this morning it was revealed that China-based Shenzhen Everwin Precision Technology and AAC Technologies have reportedly become suppliers of metal-alloy chassis for use in MacBook notebooks. The two makers obtained Apple's certification in 2017 and began small-volume shipments in 2018

 

Taiwan-based Catcher Technology, Foxconn Technology and Casetek Holdings have so far dominated supply of metal-alloy chassis used in MacBook, and as they are much more competitive than China makers in technology and production capacity. However, Apple will capitalize on China-based makers' lower costs to push down prices quoted by Taiwan-based makers.

 

Another example is Taiwan-based battery module maker Simplo Technology has moved to develop and produce batteries for electric bikes and spare battery modules for datacenters in the wake of Apple releasing most of its orders for MacBook and iPhone battery modules to China's Desay Battery Technology and Sunwoda Electronic in the past few years.

 

10.1 Supply Chain News & Rumors

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