Foreign media interpretation of Apple's suppliers in mainland China surpass Taiwan for the first time

Foreign media interpretation of Apple's suppliers in mainland China surpass Taiwan for the first time

 

Foreign media interpretation of Apple's suppliers in mainland China surpass Taiwan for the first time

According to a report by "Nikkei Asia" on the 2nd, Apple recently announced the list of major suppliers. Mainland China surpassed Taiwan to become Apple's largest source of suppliers. However, based on product sales prices, the value of mainland Chinese suppliers in Apple's supply chain is still very small, reflecting that mainland companies are still in the middle and lower reaches of the global technology industry chain system and urgently need to improve their position.

Apple announced on its official website a list of major suppliers for 2020. By region, the number of suppliers in mainland China (including Hong Kong) reached 51, which once again set a record high and surpassed Taiwan to become Apple's largest supplier source for the first time. In 2020, there will be 12 new suppliers in mainland China, which is the region with the most new suppliers. According to the Nihon Keizai Shimbun, the US trade sanctions against China have not cut Apple's close economic relationship with mainland China, and mainland Chinese suppliers have become the biggest beneficiaries of Apple's supply chain diversification strategy.

According to Apple's latest second fiscal quarter report, the main financial data significantly exceeded market expectations. Net revenue was 89.584 billion U.S. dollars, an increase of 54% year-on-year. Net profit was US$23.63 billion, a year-on-year increase of 110%. Among them, revenue in Greater China increased by 87% year-on-year. The sales growth of Apple products is still largely dependent on the Chinese market, while mainland Chinese suppliers are also rapidly helping Apple increase its production. In other Asian countries and regions, suppliers from Japan and Taiwan are losing their advantages. And Vietnam has become the fastest-growing Apple supplier.

According to the Nikkei, the influence weight of mainland Chinese suppliers on Apple's production capacity has been further expanded. But on the other hand, in terms of the value of parts and components, the proportion of mainland Chinese enterprises is much smaller than the proportion of suppliers in the supply chain. Some people in the industry have calculated that for an iPhone 12 that costs more than US$370, the value of parts and components from a Chinese supplier is only US$17, accounting for about 5%. Comparing South Korea and the United States, the value of about 25% of suppliers is far from each other. This shows that the main way for mainland Chinese suppliers to gain Apple's favor is to provide low prices and choose low-profit businesses that other suppliers are unwilling to undertake. The parts and components of mainland Chinese suppliers are still at the middle and low end of the electronic consumer industry chain. ▲