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Apple Inc. reportedly expanded its supply chain by adding eight new Chinese companies. This move made it apparent that the iPhone maker would be relying on a China-based network of companies for the future production and delivery of its products.
Although Apple managed to establish manufacturing plants outside of the country, it will take many years before it can be completely independent from China. The leading American tech firm added new companies to its Chinese supply chain.
Apple's Supply Chain: List of New Members
WCCFTech reported that, based on Apple's supplier list in 2023, new names were added, expanding its Chinese supply chain. The eight newly added partners are Baoji Titanium Industry Co. Ltd., Jones Tech PLC, Paishing Technology Company, Zhenghe Group, San'an Optoelectronics Co., Ltd., Jiuquan Iron & Steel (Group) Co., Ltd., Zhejiang Tony Electronic Co., Ltd., and Shenzhen BSC Technology Co., Ltd.
Some of Apple's suppliers pledged to achieve carbon neutrality by 2030. Nevertheless, even if it added new Chinese suppliers, the company does not want to be overly reliant on China because of the growing political tension between the United States and Beijing.
Removal of Supply Chain Members
Apple increased the number of its China-based suppliers but also terminated contracts with four Chinese companies: Jiangsu Gian Technology Company Limited, Winox Holdings Limited, MYS Group Company Limited, and Shenzhen Deren Electronic Company Limited. The firm did not disclose why they were removed from the supply chain.
Meanwhile, GizChina reported that for many years now, China has been an essential player in Apple's supply chain. The country contributed 42% of the tech firm's annual production, and it continues to partner with Chinese firms because of the skilled labor force, affordability, low production costs, ability to automate production, and the country's extensive industrial infrastructure.
Photo by: Laurenz Heymann/Unsplash
